The eventual purchase of Opel by PSA will have consequences difficult to predict. What was not known is that the brand was already working on a plan to guarantee its future existence and sustainability.
The announcement of PSA's intentions caused surprise and fear. The surprise comes from the management of the German brand, which only knew last Tuesday, like all of us, that such discussions were taking place. The fear comes mainly from the German and British governments and workers, who see this possible merger as a threat to jobs in the factories that GM has in their respective countries.
On the Opel side, it was learned that its own chief executive, Karl-Thomas Neumann, may only have learned of Carlos Tavares' PSA intentions shortly before it was publicly known. Neumann must not have taken the news lightly. Recently, an article published by Manager Magazin revealed that, in parallel, Neumann and the rest of Opel's management were already working on a long-term strategy to ensure the brand's survival.
100% electric Opel
The strategy defined by Karl-Thomas Neumann would involve the complete conversion of Opel into an electric car manufacturer by 2030. And the reasons put forward to justify this decision reveal the difficulties faced by the manufacturer.The numbers are illuminating. GM Europe, which includes Opel and Vauxhall, has not been profitable for over 15 years. Last year, the losses amounted to 257 million dollars, although lower than those obtained in 2015. The prospects for 2017 are not encouraging either.
RELATED: PSA may acquire Opel. The details of a 5-year alliance.
Neumann, in dealing with this scenario, saw the manufacturer at risk of not being able to invest enough in the medium term in the simultaneous development of cars with internal combustion and electric engines. The dispersion of investments in two distinct propulsion technologies, which we are currently witnessing, is an equation that is difficult to solve for the industry in general.
Neumann's plan would be to anticipate the development focus only and only on electric propulsion systems. The goal would be, by 2030, for all Opels to be zero-emission vehicles. Investment in internal combustion engines would be abandoned long before that date.
The outlined plan had already been presented to GM management, and a decision was expected in May. At an early stage, the electrical architecture of the Chevrolet Bolt and Opel Ampera-e would be the basis for developing the future range. The plan even states that, during this transitional phase, Opel would be split into two, an “old” and a “new” Opel.
Whether or not PSA ultimately buys Opel, the fate of Karl-Thomas Neumann's plan is uncertain.
Source: Automotive News Europe