The PSA Group (Peugeot, Citröen and DS) confirms the possibility of acquiring Opel. The analysis of this possible purchase and other synergies has been developed in conjunction with GM.
The clarification was issued today by the PSA Group and confirms that the Alliance that has been implemented with General Motors since 2012, could include an eventual acquisition of Opel.The PSA/GM alliance: 3 models
Five years ago, and with the automobile sector still going through a deep crisis, Grupo PSA and GM formed an alliance with the following objectives: to study possibilities for expansion and cooperation, improve profitability and operational efficiency. The sale in 2013, by GM, of the 7% it held in PSA, did not affect the Alliance.
This Alliance resulted three projects together in Europe where we can find the newly presented Opel Crossland X (augmented platform of the new Citröen C3), the future Opel Grandland X (platform of the Peugeot 3008) and a small light commercial.
The objectives of these talks have not changed compared to 2012. The novelty is the possibility of Opel, and in addition, Vauxhall, leaving the sphere of the American giant and joining the French group, as can be read in the official statement from PSA:
“In this context, General Motors and the PSA Group regularly examine additional possibilities for expansion and cooperation. The PSA Group confirms that, together with General Motors, it is exploring numerous strategic initiatives aimed at improving its profitability and operational efficiency, including a possible acquisition of Opel.
At this time there is no guarantee that an agreement will be reached.”
More than a million vehicles a year
This is Opel's sales volume on the European continent alone, which means that if it happens, this merger will change the structure of the market. Considering the numbers for 2016 and with Opel in the PSA sphere, this group's market share in Europe would reach 16.3%. The Volkswagen group currently has a share of 24.1%.The arrival of Carlos Tavares to the leadership of the PSA group allowed him to return to profits in a few years. The Portuguese reduced the number of models focusing on the most profitable, increased profitability and reduced operating costs.
With Opel joining Peugeot, DS and Citröen, it would mean an increase of one million vehicles a year, totaling around 2.5 million sales in Europe.
A profitable Opel, is it this one?
Opel has not had an easy existence in recent years. In 2009 GM tried to sell Opel, being, among other applicants, the FCA (Fiat Chrysler Automobiles). After this attempt, he began a recovery plan for the brand, which was beginning to show its first results.
However, the return-to-profit plan was postponed by GM due to increased operating costs in Europe as a result of Brexit. In 2016, GM in Europe reported losses in excess of 240 million euros. A considerable improvement when compared to the more than 765 million euros of losses in 2015.
Source: PSA Group