With Opel and Vauxhall under its authority PSA becomes Europe’s second largest automaker
Peugeot owner PSA group has closed acquisition deal of Opel and Vauxhall from general Motors. With this deal, the French automobile group has become the second largest European car manufacturer and it has 17% market share in the first half of current financial year. Groupe PSA has already appointed new management to run both the companies.
Both the Opel and Vauxhall have been asked to submit a plan within 100 days to see profit and the automakers are aiming annual cost savings of € 1.7 billion for the automobile group in the mid-term. Speaking about the acquisition of these two brands, Groupe PSA chairman Carlos Tavares has said apart from profitability the group is also aiming to set new industry benchmarks.
Groupe PSA currently owns famous automobile brands like Peugeot, DS and Citroen. With arrival of the Opel and Vauxhall under the same umbrella completing a 2.2 billion Euro deal, all these brands are expected to share technologies and platforms in order to reduce production cost. Despite having these two famous automakers under its authority, General Motors was unable to see profit in European markets since 1999. Now with these brands sold to PSA, GM retreats from the Europe.
Interestingly, in an attempt to streamline its worldwide business General Motors is seen withdrawing itself from several major global markets. Speaking about India it has announced the withdrawal of the Chevrolet brand from domestic market. The company has sold the Halol plant to its Chinese partner SAIC. Apart from that, it has announced exit from South African market as well.
What’s more interesting is PSA is preparing to re-launch its Peugeot brand in Indian market by 2020. It has purchased the iconic Ambassador brand few months ago. Now with Opel and Vauxhall under the group, we may see the Peugeot cars bearing technologies and platforms from the German and British brands.