Automotive

Opel and Vauxhall officially join PSA Groupe

Opel and Vauxhall officially j...
Opel CEO and Chairman of the PSA board in front of a Vauxhall Insignia 
Opel CEO and Chairman of the PSA board in front of a Vauxhall Insignia 
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Opel CEO and Chairman of the PSA board in front of a Vauxhall Insignia 
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Opel CEO and Chairman of the PSA board in front of a Vauxhall Insignia 

Opel and Vauxhall are officially part of Peugeot and Citroen Group (Groupe PSA), which acquired the brands from General Motors in a deal worth just over €2.2 billion (US$2.6 billion). The deal was stuck in March this year, but has just been finalized.

General Motors was clear in its reason for selling Opel and Vauxhall: it wasn't making enough money. PSA is obviously keen to change that, with plans to deliver an operating margin of 2 percent by 2020 and 6 percent by 2026.

Purchasing Opel pushes PSA's European market share up to 17 percent, making it the second largest carmaker behind VW. The deal improves economies of scale for PSA, too, worth an estimated €1.8 billion ($2 billion) across purchasing, manufacturing and R&D.

"We are witnessing the birth of a true European champion today," says Chairman of the PSA board, Carlos Tavares. "We will assist Opel and Vauxhall's return to profitability and aim to set new industry benchmarks together... Opel will remain German, Vauxhall will remain British."

Source: PSA Groupe

2 comments
fen
It was a shortsighted move by GM, probably made by shareholders and not people with knowledge of engineering or how they make their cars. A lot of their r&d comes from opel, and a lot of their american cars are based 100% on opel. Im sure PSA will take these kinds of savings on board more when valuing Opel and will have got a fairly good deal for themselves. Opel have the ability to design things that can be shared across all 3 brands. Puegeot and Citroen have had new life breathed into them with new designs, and this could be just what they need to fully round themselves off.
possum1
GM have lost the plot ! A big percentage of product in Holden Dealerships now are re-badged Vauxhalls and Opel was to be the source of Holden's big sedan if the 'experts' were to be believed. First they kill off Pontiac which was a showcase for Australian built Holden cars re-badged for the US market, then they kill off Holden, now they cut their ties with Europe. When US emission standards catch up with the rest of the world, GM will need the European experts to make it happen - and it wont be there, and GM will joint the Dodo.