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GM’s Exit From Europe Entails Years of Pension Payments

Carmaker will pay about $400 million annually for 15 years.

By David Welch, Bloomberg | Updated on March 07, 2017

General Motors Co. will practically pay France’s PSA Group to take its long-struggling European unit off its hands as it looks to cauterize a perennial bleeder.

PSA will pay a total of $2.2 billion to buy GM’s German Opel unit, its U.K. sister brand Vauxhall and its European auto lending business. In return, GM will give the French carmaker $3.2 billion to cover future Europe pension obligations and keep managing $9.8 billion worth of plans for existing retirees.

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