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PSA studies spending cuts at Opel

Automotive News

The German manufacturer has to present its strategic plan in early November.

The CEO of the French automotive consortium PSA, Carlos Tavares, has indicated that he could implement cost-cutting policies at Opel, noting that these are almost 50% higher than those recorded by PSA.

The executive explained that many of the problems of the German firm are linked to disproportionate aspects in Opel, such as high energy consumption or processes are not efficient.

In an interview at Die Welt, Tavares pointed out that Opel has to become “much more efficient” in all the places where it operates and in all its functions. “The car industry is still a place where there is a lot of waste,” he added.

PSA is currently in the process of integrating Opel. Thus, the French company plans to use its own technology and model platforms in future Opel vehicles.

On the other hand, Tavares has stressed that the business strategy that was running Opel was not working to make the corporation profitable. “And now we are facing the danger that Opel will not be able to meet the emission limits that will come into force in 2020,” he said.

Opel has to present its new strategic plan early next month, as demanded by Tavares.

Recently, the group said it could cut about 400 jobs at the Vauxhall (Opel) factory in Ellesmere Port (UK) in order to improve the center’s competitiveness.

Expansion BY Agencies – 10/20/2017 (Translation Soft)

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