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Money Talks from The Economist

Money talks: GM says ‘au revoir’ to Europe

Money Talks from The Economist

The Economist

News, Business, Economy, Finance & Economics, Business News

4.41.2K Ratings

🗓️ 7 March 2017

⏱️ 18 minutes

🧾️ Download transcript

Summary

General Motors has sold its Vauxhall and Opel brands to PSA in France. Adam Roberts our European business editor asks how the car industry is reacting to the consolidation. Also: can Snapchat succeed as a public company? And might President Trump’s accusation that China hasn't been playing by the rules have a point? Simon Long hosts.

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Transcript

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0:00.0

This is a passenger announcement. You can now book your train on Uber and get 10% back in credits to spend on Uber eats.

0:11.0

So you can order your own fries instead of eating everyone else's.

0:15.0

Trains, now on Uber. T's and C's apply. Check the Uber app.

0:20.0

Hello. I'm Simon Long, finance and economics editor at The Economist, and this is Money Talks.

0:30.0

Later in the programme, SNAP, the firm behind the Snapchat app, has gone public via an IPO.

0:37.0

But is it likely to succeed as a public company?

0:39.0

This was the big chance for public investors to get in and it traded up significantly on its first day.

0:47.0

And we ask Trade Expert Chadbound if there's any truth to President Trump's accusation that China hasn't been playing by the trade rules.

0:54.6

China is a little bit different as well in that China also has the state or the government

1:00.8

heavily involved in certain types of industries.

1:06.5

But to start, earlier this week it was confirmed that PSA, the owner of Persia and Citron,

1:12.3

has agreed to buy General Motors European operations

1:14.6

for 2.3 billion dollars, taking in GM's Opel and Vauxhall operations.

1:20.5

GM Europe's not made a profit since 1999, but the new owners are promising to get the business back in the black once again.

1:27.0

Adam Roberts, our European Business and Finance Correspondent, joins me from Paris.

1:32.0

Adam, on the face of it, getting rid of a loss-making unit,

1:36.0

looks pretty good business for General Motors.

1:38.0

Have they got a good deal?

1:39.0

Yes, some will say that getting out of Europe is the best thing that General Motors could have possibly done.

1:45.6

There's been years and years of making losses in Europe.

1:49.3

There had been this idea that you had to be big to have any chance of competing with the really big car

1:56.2

companies, the Volkswagen's and so on of the world.

...

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