Opel/Vauxhall officially PSA-owned

The sale of Opel and Vauxhall by General Motors to Groupe PSA has been finalized “It is a historic day,” said Opel Automobile GmbH CEO Michael Lohscheller. “We are proud to join Groupe PSA and are now opening a new chapter in our history after 88 years with General Motors. The combination of our strengths will enable us to turn Opel and Vauxhall into a profitable and self-funded business.”

Opel has set itself the target of returning to profitability by 2020.  Synergies within the Groupe PSA, for example in purchasing and development, are set to play a major part. The combined entity will unlock substantial economies of scale and synergies in purchasing, manufacturing and R&D estimated at €1.7 Bn at run rate. The goal is to generate a positive operational free cash flow by 2020 as well as an operating margin of two percent by 2020 and six percent by 2026.

Opel/Vauxhall and Groupe PSA will continue to work with General Motors in the future. Opel plants will continue to produce vehicles for the GM brands Buick and Holden. GM will also keep on building the electric Ampera-e for Opel alongside its identical twin Chevrolet Bolt in Detroit, albeit in limited numbers. It is clear that the Americans are giving priority to their domestic market, where the Bolt is in high demand.

Picture copyright: Opel, 2017