PSA Group officially becomes the second largest carmaker in Europe with acquisition of GM's European brands.
The PSA Group’s £1.9bn acquisition of Opel and Vauxhall from General Motors is now complete, and the enlarged PSA Group is now the second largest carmaker in Europe with a 17 per cent market share, trailing only the Volkswagen Group.
It brings to an end an 88-year association between the Opel and Vauxhall brands and GM, while new owner PSA has announced its intention to produce a ‘performance plan’ for its new marques, which will be presented to investors within the next 100 days.
According to newly appointed Opel CEO Michael Lohscheller, the brand has set itself a target of returning to profitability by 2020 under its new ownership. Lohscheller replaces Dr Karl-Thomas Neumann, who sat at the helm at Opel for four years following his appointment in 2013.
The deal means purchasing, R&D costs, and manufacturing can now be totally shared between Opel/Vauxhall and PSA – a game changer compared to previous platform sharing deals that Opel believes could save an estimated £1.5bn a year once economies of scale are fully exploited. The goal is to generate a positive operational free cash flow by 2020 as well as an operating margin of two per cent by 2020 and six per cent by 2026.
PSA Chairman Carlos Tavares said: "Opel will remain German, Vauxhall will remain British. They are the perfect fit to our existing portfolio of French brands Peugeot, Citroën and DS Automobiles,” adding that the merger is "the birth of a true European champion”.
PSA Peugeot Citroen announced on the eve of the Geneva show earlier this year that it has acquired GM's European arm Opel/Vauxhall in a deal worth £1.9 billion.
Speaking exclusively to Auto Express at the show, Dr Neumann said that Opel is further along its path to profitability - and that Vauxhall needs "more attention and a clearer positioning".
"There are many changes in the British market - mainly the move towards premium or luxury brands,” he said. "So Vauxhall has to be clearer in what it stands for. But that is something where PSA has the highest interest that we proceed on our path and don’t mess around. Some people ask me, ‘Will all your cars from now on look like French cars?’ And the answer is no, of course not - because that is the whole thing with this deal. It’s British cars or German cars - and it’ll stay like this.
"You can see it here at Geneva with the Crossland; it’s a true Opel/Vauxhall, not a repainted Peugeot or Citroen. And all parties have the highest interest that it stays as such.”
The merger makes PSA the second largest car marker in Europe; with a market share of 17 per cent putting it behind only the VW Group. Globally, PSA sold 3.5 million cars last year compared with the Opel/Vauxhall brand's 0.8 million.
Vauxhall boss Rory Harvey told Auto Express at the Geneva Motor Show that "the mood is optimistic, but I would say that there are question marks [about the PSA deal]". However, he said he was not able to elaborate on those comments, as negotiations were still ongoing.
Harvey wouldn't comment on the future of manufacturing in the UK, but did say that "It's a core part of our DNA that we are a British brand with factories here... That's a fundamental part of our selling cars in the UK."
Speaking about a 13 per cent drop in new car registrations last month, Harvey told us that thanks to the devaluation of the pound, Vauxhall will do 20,000 fewer rental sales, 5,000 less motability units this year and there are a couple of strategic fleet accounts that we will not do this year." He did suggest that new SUVs that are coming out this year, all based on PSA platforms, would help boost sales.
General Motors chief executive officer Mary Barra said "We are very pleased that together, GM, our valued colleagues at Opel/Vauxhall and PSA have created a new opportunity to enhance the long-term performance of our respective companies by building on the success of our prior alliance”. At a press conference held in March, the GM CEO added that the sale had been a "difficult decision for General Motors" but ultimately the right one.
Source: auroexpress.co.uk
It brings to an end an 88-year association between the Opel and Vauxhall brands and GM, while new owner PSA has announced its intention to produce a ‘performance plan’ for its new marques, which will be presented to investors within the next 100 days.
According to newly appointed Opel CEO Michael Lohscheller, the brand has set itself a target of returning to profitability by 2020 under its new ownership. Lohscheller replaces Dr Karl-Thomas Neumann, who sat at the helm at Opel for four years following his appointment in 2013.
The deal means purchasing, R&D costs, and manufacturing can now be totally shared between Opel/Vauxhall and PSA – a game changer compared to previous platform sharing deals that Opel believes could save an estimated £1.5bn a year once economies of scale are fully exploited. The goal is to generate a positive operational free cash flow by 2020 as well as an operating margin of two per cent by 2020 and six per cent by 2026.
PSA Chairman Carlos Tavares said: "Opel will remain German, Vauxhall will remain British. They are the perfect fit to our existing portfolio of French brands Peugeot, Citroën and DS Automobiles,” adding that the merger is "the birth of a true European champion”.
PSA Peugeot Citroen announced on the eve of the Geneva show earlier this year that it has acquired GM's European arm Opel/Vauxhall in a deal worth £1.9 billion.
Speaking exclusively to Auto Express at the show, Dr Neumann said that Opel is further along its path to profitability - and that Vauxhall needs "more attention and a clearer positioning".
"There are many changes in the British market - mainly the move towards premium or luxury brands,” he said. "So Vauxhall has to be clearer in what it stands for. But that is something where PSA has the highest interest that we proceed on our path and don’t mess around. Some people ask me, ‘Will all your cars from now on look like French cars?’ And the answer is no, of course not - because that is the whole thing with this deal. It’s British cars or German cars - and it’ll stay like this.
"You can see it here at Geneva with the Crossland; it’s a true Opel/Vauxhall, not a repainted Peugeot or Citroen. And all parties have the highest interest that it stays as such.”
The merger makes PSA the second largest car marker in Europe; with a market share of 17 per cent putting it behind only the VW Group. Globally, PSA sold 3.5 million cars last year compared with the Opel/Vauxhall brand's 0.8 million.
Vauxhall boss Rory Harvey told Auto Express at the Geneva Motor Show that "the mood is optimistic, but I would say that there are question marks [about the PSA deal]". However, he said he was not able to elaborate on those comments, as negotiations were still ongoing.
Harvey wouldn't comment on the future of manufacturing in the UK, but did say that "It's a core part of our DNA that we are a British brand with factories here... That's a fundamental part of our selling cars in the UK."
Speaking about a 13 per cent drop in new car registrations last month, Harvey told us that thanks to the devaluation of the pound, Vauxhall will do 20,000 fewer rental sales, 5,000 less motability units this year and there are a couple of strategic fleet accounts that we will not do this year." He did suggest that new SUVs that are coming out this year, all based on PSA platforms, would help boost sales.
General Motors chief executive officer Mary Barra said "We are very pleased that together, GM, our valued colleagues at Opel/Vauxhall and PSA have created a new opportunity to enhance the long-term performance of our respective companies by building on the success of our prior alliance”. At a press conference held in March, the GM CEO added that the sale had been a "difficult decision for General Motors" but ultimately the right one.
Source: auroexpress.co.uk
Latest News
