PSA asks Opel refund from General Motors over CO2 emissions

Peugeot maker PSA Group, who paid General Motors 1.3 billion euros for Opel, now seeks about half of that cash back after finding the whole level of its CO2 emissions difficulties and exposure to European fines, sources informed Reuters.

PSA had finished the acquisition in July. PSA stated previously this month it will have to move Opel models onto its own more fuel-efficient technology quicker than planned, in order to cut CO2 emissions prior new EU limitations are phased in from 2020-21, backed by large penalties.

The automaker has informed General Motors it believes it is owed more than half a billion euros and plans to resrot to legal claim on the grounds that it was misguided about Opel’s emissions technique, two individuals knowledgeable about the matter said.

PSA is looking for 600-800 million euros, as per one individual.

The companies have talked about the complaints raised by PSA, which has yet to start an official claim, sources near both makers stated.

“We are not familiar with any claim submitted by PSA concerning future CO2 targets and we can not speculate on concerns that have not been raised with us,” GM spokesman David Caldwell stated. He refused to say whether Opel emissions had been gone over.

“PSA carried out a robust due diligence process including their workers and lots of experts and lawyers,” Caldwell stated. “We provided them with significant information.”

PSA spokesman Bertrand Blaise refused to comment. The shares of both company dropped.

Automakers are rushing to decrease carbon emissions by the 2021 deadline. A decline in diesel sales is complicating their work, as customers switch to less fuel-efficient fuel cars.