The integration of Opel into the PSA Group is already a factAutomotive News
The new development plan will be presented in 100 days: generate a positive operational cash flow in 2020, as well as an operating margin of 2% in the same year and 6% in 2026. The new Corsa will be launched in 2019.
The sale of Opel Automobile GmbH with its Opel and Vauxhall brand from General Motors to the PSA Group is complete. “This is a historic day,” said Michael Lohscheller, president and CEO of Opel Automobile GmbH. “We are proud to join the PSA Group and start a new chapter after 88 years belonging to General Motors. We will continue our path of making German technology available to everyone.” Combining our strengths will enable us to make Opel and Vauxhall profitable and We have clearly set the challenge of being profitable again by 2020. ”
“We are witnessing the birth of a true European champion,” said the president and CEO of the PSA Group, Carlos Tavares. “We will help Opel and Vauxhall return to profits and we intend to be a new benchmark in the industry.” We will release the power of these flagship brands and the enormous potential of their existing talents. They are the perfect complement to our current offer of French brands Peugeot, Citroën and DS Automobiles. The integration of Opel / Vauxhall will give the PSA Group a market share in Europe of around 17 percent, becoming the second largest manufacturer of cars on the continent, ranking first or second in many important markets.
As was already assured when the contract was signed in March, all employees’ co-determination rights will remain unchanged. The Opel / Vauxhall management team will work on a plan for the future in the next 100 days. “We look forward to building the plan with the support of PSA and obviously along with our partners in the works council and the unions,” said Opel CEO Lohscheller. Synergies within the PSA Group, for example in purchasing and development, will play an important role. The combined entity will unlock important economies of scale and synergies in procurement, manufacturing and R & D estimated at € 1,700 million at implementation rate. The objective is to generate a positive operating cash flow for 2020, as well as an operating margin of two percent for 2020 and six percent for 2026.
For the future, Michael Lohscheller is planning a lighter management structure, including the number of direct reports. “We are reducing complexity and increasing speed,” said Lohscheller. “I am looking forward to shaping the next Opel / Vauxhall chapter with the new management team and taking our company to a successful future.” Owners and employees will not be the only ones who will benefit from increasingly strong Opel and Vauxhall brands. Customers will too. ”
PSA and Opel / Vauxhall have been working together since 2012. The cooperation so far includes four Opel vehicles. The first model, the Opel Crossland X, has been available from dealerships since the end of June. The Opel Grandland X, an SUV in the next highest segment, will follow in the fall. The successor to the light commercial vehicle Opel Combo will hit the market next year and from 2019 will launch the next generation of the best seller Opel Corsa.
Opel / Vauxhall and Groupe PSA will continue to work with General Motors in the future. In addition to the development in the area of electric propulsion, the Opel plants will continue to produce vehicles for GM, Buick and Holden brands. At the same time, the acquisition of the European operations of GM Financial, subject to the validation of the different regulatory authorities, is being carried out and is scheduled for the second half of 2017.
The beginning of a new era is accompanied by some important changes of leadership. “I am happy to announce that four new members will join my management team,” said Michael Lohscheller, president and CEO of Opel Automobile GmbH.
Christian Müller, formerly Global Vice President of Propulsion Systems for Europe and with Opel since 1996, will succeed William F. Bertagni as Vice President of Engineering. It will integrate engineering and propulsion systems into a single department. For his part, Rémi Girardon, previously senior vice president of Industrial Strategy at Groupe PSA, will succeed Philip R. Kienle as vice president of Manufacturas.