10:07 am, August 1, 2017
PSA GROUP has today become the second largest vehicle manufacturer in Europe as the purchase of Opel and Vauxhall is completed.
The group, which already owned Peugeot, Citroen and DS, now has a 17 per cent market share in the region, second only to Volkswagen Group.
A new performance plan is to be presented in 100 days. 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.
Synergies within the group 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 €1.7bn (£1.5bn) at run rate.
‘We are witnessing the birth of a true European champion today,’ emphasised PSA board chairman Carlos Tavares. ‘We will assist Opel and Vauxhall’s return to profitability and aim to set new industry benchmarks together. We will unleash the power of these iconic brands and the huge potential of its existing talents. 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.’
‘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. We will continue our path of making technology “made in Germany” available to everyone. The combination of our strengths will enable us to turn Opel and Vauxhall into a profitable and self-funded business. We have set ourselves the clear target of returning to profitability by 2020.’
MORE: Takeover makes French giant second in European rankings
MORE: PSA boss reveals future plans for Vauxhall and Opel – and Vauxhall name could go
MORE: £1.9bn deal will see GM sell Vauxhall and Opel to the PSA Group
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