The Strategist

PSA Peugeot-Citroen completes purchase of Opel

08/02/2017 - 15:14

Automobile brands Opel and Vauxhall now belong to the French auto concern PSA Peugeot-Citroen. The transaction is considered closed; the issue price was 2.2 billion euros.

Handelsblatt notes that the new owner plans to upgrade Opel’s factories. Now the company is working out a new development plan for the French alliance. The strategy will be aimed at restoring financial stability. It should be submitted to the management of the PSA Group in 100 days.

New head of Opel Michael Lohscheller will be responsible for the plan. PSA President and Chairman Carlos Tavares emphasizes that the German management will continue to take care of the brand.

"Opel remains a German brand and Vauxhall is a British mark that perfectly complements our existing portfolio of French brands Peugeot, Citroën and DS Automobiles. Today, together with Opel and Vauxhall, we are starting a new stage of our journey. We will implement the strategic plan and attract new customers, and we are confident that these strategies will give impetus to the development of the company and will serve to benefit our shareholders. "

According to the plans, the profitability of the Opel brand should reach 2% in 2020, and increase to 6% by 2026. In the medium term, experts estimate the total revenue of the alliance at 1.7 billion euros.

Opel since 1929 belonged to the American auto concern General Motors. Once the company was considered the largest automaker in Germany. Since 1999, however, Opel and the British brand Vauxhall no longer brought operational profit to their owners.

Earlier it was reported that the deal to buy brands Opel and Vauxhall would allow the French concern PSA Group to seize about 20% of the European market. In the future, PSA Group has all the opportunities to become the largest automaker in Europe and, possibly, to take the palm of the championship from Volkswagen.

PSA Peugeot Citroën is the French automotive company, the second largest car manufacturer in Europe. At the end of 2015, the company reported an increase in sales worldwide by 1.2% to 2.97 million units.