PSA completes £1.9bn Vauxhall deal 01 | 08 | 2017
VAUXHALL AND OPEL’S £1.9 billion acquisition, first announced in March, by the PSA Group has been completed. The deal makes the French-based PSA Group the second largest carmaker in Europe with a 17% market share. The VW Group remains the largest. (Related: SMTA backs Vauxhall in Scotland)
Today’s announcement ends an 88-year association between Opel, and Scotland's biggest new car seller, Vauxhall — which last year lost £200m — and General Motors. The new owners have confirmed its intent to produce a ‘performance plan’ for its new marques, which will be presented to investors within the next 100 days.
PSA said its intention is for Vauxhall and Opel to "generate a positive operational free cash flow by 2020 as well as an operating margin of 2% by 2020 and 6% by 2026". Four PSA executives will join the Opel leadership team, which is led by chief executive Michael Lohscheller.
The future of Vauxhall’s two UK factories in Luton and Ellesmere Port remains unclear, though they are expected to continue normal, at least in the short- mid-term.
“Opel will remain German, Vauxhall will remain British,” Carlos Tavares, chairman of the managing board of Groupe PSA, said. “They are the perfect fit to our existing portfolio of French brands Peugeot, Citroën and DS Automobiles. This is the birth of a true European champion”.
“We are embarking today with Opel and Vauxhall on a new stage in Groupe PSA's development. We will grasp this opportunity to build on one another's strengths and to attract new customers, thanks to the implementation of the performance plan that Opel and Vauxhall will implement.
“In parallel, the execution of the Push to Pass plan remains a top priority for the teams, they are focused on achieving the objectives. We have confidence in the momentum that these strategies will create, to the benefit of all stakeholders.”
It’s predicted that by combining purchasing, R&D costs, and manufacturing — and expanding the multi-use of platform-sharing — Opel is in line to save around £1.5bn a year once economies of scale are maximised.
The PSA Group sold 3.5m cars globally last year and Vauxhall/Opel sold 1m.
Related: 252bhp Vauxhall Insignia GSi
Keep up-to-date with all the latest news by following us on twitter.com/Scotcars
Jim McGill