tristatez28lt1
Tire Trailblazer
It's official.
Same as Sergio staying on until 2021 (Bonuses incoming...). Just as we all predicted. Money does rule everything.
Same as Sergio staying on until 2021 (Bonuses incoming...). Just as we all predicted. Money does rule everything.
EnI
Piston Pioneer
PSA Deal to Buy G.M.’s Opel and Vauxhall Faces Political Winds
By JACK EWINGMARCH 6, 2017
Car companies may provide particularly fertile ground for nationalist appeals. They are often entangled with national identity.
Opel, which has belonged to G.M. since 1929, is based in Rüsselsheim near Frankfurt and widely perceived as a German brand. PSA, the maker of Peugeot and Citroën cars, is 14 percent owned by the French government.
The closure of a car factory is often devastating for the surrounding community, and falls hardest on the same kind of less-educated, lower-income workers who feel neglected by elites and victimized by global finance.
“What better industry to express a view of ‘France first’ than the auto industry?” said David J. Herman, who was chief executive of Opel during the 1990s. Making the acquisition work, he said, “is going to be excruciatingly difficult.”
Adding to the political tension, France and Germany both have national elections this year. In France, Marine Le Pen of the National Front has an outside chance at winning the presidency in May. In Germany, which will hold elections in September, Frauke Petry and her party, the Alternative for Germany, are trying to win at least 5 percent of the vote, the threshold to seat a delegation in Parliament.
Ms. Petry’s party has tried to cast the sale of Opel in nationalist terms. Last month, Paul Hampel, a member of the Alternative for Germany’s national governing board, l called the deal a “sellout of German know-how.”
At a time when European unity is under threat, the sale of Opel to PSA could strain relations among France, Germany and Britain as they try to ensure that any pain is imposed in someone else’s backyard. PSA’s Peugeot and Citroën factories are concentrated in France, while the biggest Opel and Vauxhall factories are in Germany and Britain.
It is difficult to see how PSA’s takeover of Opel, which would create the second-largest carmaker in Europe after Volkswagen, can succeed without major job cuts and, probably, the shuttering of some factories. Opel has not been profitable since the 1990s, and both companies have more factories than they need. Unused factory space is deadly to a car company’s bottom line because it requires expensive upkeep without producing revenue.
“The idea is that this deal makes a strong second to VW,” Mr. Herman said, “but they’ve got to make money.”
Britain’s vote last year to leave the European Union has cast a shadow over the future of the car industry there. Vehicles exported to the European Union could face substantial duties once Britain leaves the free-trade area.
Mrs. May, the prime minister, made as yet undisclosed concessions to persuade Nissan to agree to build two new vehicles at its factory in Sunderland. British labor unions are preparing to try to block Ford from making threatened job cuts at an engine plant at Bridgend in Wales.
The British government is also focusing on the steel industry, whose fortunes are closely tied to the auto industry, after years of neglect. Plans by Tata Steel to close a blast furnace at Port Talbot were canceled after unions made concessions on pensions.
Such cases have prompted Mrs. May to speak of an industrial policy, repudiating years of Tory free-market doctrine.
The French government has backed PSA’s acquisition of Opel, since it makes Peugot a European car champion. Freed of constraints imposed by G.M., Opel may be able to establish a stronger presence in Asia and South America.
“We are proud to join forces with Opel/Vauxhall and are deeply committed to continuing to develop this great company and accelerating its turnaround,” Carlos Tavares, chairman of the managing board of PSA, said in a statement.
But the French government would certainly protest if there were any hints of further cuts by PSA in France. Amid huge protests, PSA closed a Peugeot and Citroën factory in Aulnay-sous-Bois, outside Paris, in 2013 at a time when the company was suffering severe losses.
The French government has already demonstrated that, at least during an election year, it will intervene to protect jobs.
When Alstom tried to shut down a train factory in Belfort in eastern France, the government of François Hollande, president at the time, placed a multibillion euro order to keep the operation running.
Stanley Reed contributed reporting from London, and Liz Alderman from Paris.
https://www.nytimes.com/2017/03/06/business/psa-general-motors-opel-acquisition.html
By JACK EWINGMARCH 6, 2017
Car companies may provide particularly fertile ground for nationalist appeals. They are often entangled with national identity.
Opel, which has belonged to G.M. since 1929, is based in Rüsselsheim near Frankfurt and widely perceived as a German brand. PSA, the maker of Peugeot and Citroën cars, is 14 percent owned by the French government.
The closure of a car factory is often devastating for the surrounding community, and falls hardest on the same kind of less-educated, lower-income workers who feel neglected by elites and victimized by global finance.
“What better industry to express a view of ‘France first’ than the auto industry?” said David J. Herman, who was chief executive of Opel during the 1990s. Making the acquisition work, he said, “is going to be excruciatingly difficult.”
Adding to the political tension, France and Germany both have national elections this year. In France, Marine Le Pen of the National Front has an outside chance at winning the presidency in May. In Germany, which will hold elections in September, Frauke Petry and her party, the Alternative for Germany, are trying to win at least 5 percent of the vote, the threshold to seat a delegation in Parliament.
Ms. Petry’s party has tried to cast the sale of Opel in nationalist terms. Last month, Paul Hampel, a member of the Alternative for Germany’s national governing board, l called the deal a “sellout of German know-how.”
At a time when European unity is under threat, the sale of Opel to PSA could strain relations among France, Germany and Britain as they try to ensure that any pain is imposed in someone else’s backyard. PSA’s Peugeot and Citroën factories are concentrated in France, while the biggest Opel and Vauxhall factories are in Germany and Britain.
It is difficult to see how PSA’s takeover of Opel, which would create the second-largest carmaker in Europe after Volkswagen, can succeed without major job cuts and, probably, the shuttering of some factories. Opel has not been profitable since the 1990s, and both companies have more factories than they need. Unused factory space is deadly to a car company’s bottom line because it requires expensive upkeep without producing revenue.
“The idea is that this deal makes a strong second to VW,” Mr. Herman said, “but they’ve got to make money.”
Britain’s vote last year to leave the European Union has cast a shadow over the future of the car industry there. Vehicles exported to the European Union could face substantial duties once Britain leaves the free-trade area.
Mrs. May, the prime minister, made as yet undisclosed concessions to persuade Nissan to agree to build two new vehicles at its factory in Sunderland. British labor unions are preparing to try to block Ford from making threatened job cuts at an engine plant at Bridgend in Wales.
The British government is also focusing on the steel industry, whose fortunes are closely tied to the auto industry, after years of neglect. Plans by Tata Steel to close a blast furnace at Port Talbot were canceled after unions made concessions on pensions.
Such cases have prompted Mrs. May to speak of an industrial policy, repudiating years of Tory free-market doctrine.
The French government has backed PSA’s acquisition of Opel, since it makes Peugot a European car champion. Freed of constraints imposed by G.M., Opel may be able to establish a stronger presence in Asia and South America.
“We are proud to join forces with Opel/Vauxhall and are deeply committed to continuing to develop this great company and accelerating its turnaround,” Carlos Tavares, chairman of the managing board of PSA, said in a statement.
But the French government would certainly protest if there were any hints of further cuts by PSA in France. Amid huge protests, PSA closed a Peugeot and Citroën factory in Aulnay-sous-Bois, outside Paris, in 2013 at a time when the company was suffering severe losses.
The French government has already demonstrated that, at least during an election year, it will intervene to protect jobs.
When Alstom tried to shut down a train factory in Belfort in eastern France, the government of François Hollande, president at the time, placed a multibillion euro order to keep the operation running.
Stanley Reed contributed reporting from London, and Liz Alderman from Paris.
https://www.nytimes.com/2017/03/06/business/psa-general-motors-opel-acquisition.html
EnI
Piston Pioneer
Interesting info & analysis about the deal: https://www.bloomberg.com/news/videos/2017-03-06/is-buying-opel-a-good-deal-for-psa-group
tristatez28lt1
Tire Trailblazer
Why has PSA bought Opel and Vauxhall?
The company that owns Peugeot, Citroën and DS has bought General Motors' European business. Here's why
It’s clearly big news. Last year, Opel-Vauxhall's sales in Europe were around the 1.0 million mark and PSA's at around 1.5m. By combining the two, you get a group that moves well clear of Renault-Nissan into second place in the European sales charts, behind only the Volkswagen Group (3.6m sales in 2016).
PSA's purchase of Opel-Vauxhall also brings significant economies of scale. The number of vehicle platforms and engines that need to be developed for five brands producing cars competing in the same market segments would be significantly reduced. To that end, PSA has said it will switch over Opel-Vauxhall models to its own platforms as their replacments are launched, and it has taken ownership of GM's factories in which to build them.
Car makers are under more pressure than ever to make huge investments in the future of their businesses, not least around the issues of reducing emissions and technologies such as autonomous driving. Spreading that investment across more brands for a greater return lessens the risk of that investment in the first place.
Intriguingly, General Motors (GM) has kept hold of one part of its European operation, an R&D facility in Italy that leads diesel engine development. Clearly, GM thinks diesel still has a job to do.
If successful, this deal would solve some long-standing profitability problems for Opel-Vauxhall. Although it is back on track, Opel-Vauxhall often has an air of uncertainty around it. Questions over factories aren't going to go away, even if they are secure in the short and medium term. These issues will need to be confonted. The Vauxhall nameplate does at least look safe, though, with PSA saying it would respect the heritage of the two brands it has acquired.
Led by boss Carlos Tavares, PSA has returned to profit and is increasing its profit margins all the time. Having an extra 1.0m vehicles a year to add into that formula would be a nice problem to have in accelerating the recovery. A short-term challenge perhaps, but potentially a lucrative one in the long-term.
It’s five years since GM took a 7% stake in PSA, marking the beginning of the collaboration between the two firms. That stake was quickly sold off, but the collaboration continued, and we’re now finally seeing the first fruits of it with two new Vauxhall SUVs, the Peugeot 2008-based Crossland X and the Peugeot 3008-based Grandland X.
Who’s going to lose out? Well, those two SUVs already show that an overlapping platform strategy could lead to a confused product range, at least in the short term. Vauxhall already has an SUV of similar size to the Crossland X in the shape of the Mokka X. Now it has to have another spun off the 2008's platform to boost the profitability of that car’s underpinnings.
Products could become homogenised. That would leave fewer choices for buyers. Let’s face it: there isn’t too much difference these days between a Volkswagen Golf, Skoda Octavia or Seat Leon when you go beyond the skin-deep stuff, although it hasn't harmed any of the models in the eyes of the consumer. Peugeot, Citroën, DS, Opel and Vauxhall could face a similar problem if the brands aren't positioned clearly enough. This, in particular, is a challenge that Tavares will need to confront.
Clearly, the unions will continue to have something to say about the deal regarding the long-term prospects of multiple factories producing broadly similar cars and they will be seeking further assurances now the fog and rumour around the deal's potential has cleared into one involving pen being put to paper. You suspect something will have to give, and closer to home, Peugeot has history in abandoning its UK manufacturing base.
Such a large investment from PSA could actually unleash Opel-Vauxhall to reach its full potential. Just look at what new ownership has done for Jaguar Land Rover under Tata, and Volvo under Geely. Each was moved from being a smaller cog in the vast Ford empire to a larger one under much more focused ownership, and each has thrived since. Who's to say Opel-Vauxhall, managed by a company down the road rather than on another continent, and therefore one that's intrinsically more in tune with the pressures facing a European car maker, can't do the same?
http://www.autocar.co.uk/opinion/industry/why-has-psa-bought-opel-and-vauxhall
The company that owns Peugeot, Citroën and DS has bought General Motors' European business. Here's why
-
Carlos Tavares, PSA chairman
It’s clearly big news. Last year, Opel-Vauxhall's sales in Europe were around the 1.0 million mark and PSA's at around 1.5m. By combining the two, you get a group that moves well clear of Renault-Nissan into second place in the European sales charts, behind only the Volkswagen Group (3.6m sales in 2016).
PSA's purchase of Opel-Vauxhall also brings significant economies of scale. The number of vehicle platforms and engines that need to be developed for five brands producing cars competing in the same market segments would be significantly reduced. To that end, PSA has said it will switch over Opel-Vauxhall models to its own platforms as their replacments are launched, and it has taken ownership of GM's factories in which to build them.
Car makers are under more pressure than ever to make huge investments in the future of their businesses, not least around the issues of reducing emissions and technologies such as autonomous driving. Spreading that investment across more brands for a greater return lessens the risk of that investment in the first place.
Intriguingly, General Motors (GM) has kept hold of one part of its European operation, an R&D facility in Italy that leads diesel engine development. Clearly, GM thinks diesel still has a job to do.
If successful, this deal would solve some long-standing profitability problems for Opel-Vauxhall. Although it is back on track, Opel-Vauxhall often has an air of uncertainty around it. Questions over factories aren't going to go away, even if they are secure in the short and medium term. These issues will need to be confonted. The Vauxhall nameplate does at least look safe, though, with PSA saying it would respect the heritage of the two brands it has acquired.
Led by boss Carlos Tavares, PSA has returned to profit and is increasing its profit margins all the time. Having an extra 1.0m vehicles a year to add into that formula would be a nice problem to have in accelerating the recovery. A short-term challenge perhaps, but potentially a lucrative one in the long-term.
It’s five years since GM took a 7% stake in PSA, marking the beginning of the collaboration between the two firms. That stake was quickly sold off, but the collaboration continued, and we’re now finally seeing the first fruits of it with two new Vauxhall SUVs, the Peugeot 2008-based Crossland X and the Peugeot 3008-based Grandland X.
Who’s going to lose out? Well, those two SUVs already show that an overlapping platform strategy could lead to a confused product range, at least in the short term. Vauxhall already has an SUV of similar size to the Crossland X in the shape of the Mokka X. Now it has to have another spun off the 2008's platform to boost the profitability of that car’s underpinnings.
Products could become homogenised. That would leave fewer choices for buyers. Let’s face it: there isn’t too much difference these days between a Volkswagen Golf, Skoda Octavia or Seat Leon when you go beyond the skin-deep stuff, although it hasn't harmed any of the models in the eyes of the consumer. Peugeot, Citroën, DS, Opel and Vauxhall could face a similar problem if the brands aren't positioned clearly enough. This, in particular, is a challenge that Tavares will need to confront.
Clearly, the unions will continue to have something to say about the deal regarding the long-term prospects of multiple factories producing broadly similar cars and they will be seeking further assurances now the fog and rumour around the deal's potential has cleared into one involving pen being put to paper. You suspect something will have to give, and closer to home, Peugeot has history in abandoning its UK manufacturing base.
Such a large investment from PSA could actually unleash Opel-Vauxhall to reach its full potential. Just look at what new ownership has done for Jaguar Land Rover under Tata, and Volvo under Geely. Each was moved from being a smaller cog in the vast Ford empire to a larger one under much more focused ownership, and each has thrived since. Who's to say Opel-Vauxhall, managed by a company down the road rather than on another continent, and therefore one that's intrinsically more in tune with the pressures facing a European car maker, can't do the same?
http://www.autocar.co.uk/opinion/industry/why-has-psa-bought-opel-and-vauxhall
Gianclaudio
Aerodynamic Artisan
Many of the Chevrolet cars made and sold in South America are rebranded Opel.... I wonder what is going to happen to those cars.
martinbo
Staff member
My views on this merger:
Synergies will be hard to exploit to the point of mutual benefit for a number of years to come. Renault and Nissan are a good example of the two makers bringing separate and distinct value to the party. I don't see this with the PSA-Opel merger - to my mind there's there's a whole lot of different stuff that's largely the same. Same kind of engines but too many differences, same kind of FWD platforms but again, too many differences, and, the list goes on.
Nissan had all but given up on the compact hatchback segment and started to forge ahead with its brilliant crossover strategy with first the Qashqai and then Juke. Nissan also had bigger, AWD-appropriate platforms to bring to the table whilst Renault could concentrate on building cars that the French are good at building: compact FWD hatchbacks. These synergies in reverse resulted in Captur and Kadjar off Juke and Qashqai product development respectively as well as Micra mkV off the Clio Mk IV's development - itself born out of the Renault-Nissan Platform B/V alliance.
I imagine a considerable expense associated with consolidating the product development, supply chain and manufacturing undertakings associated with the Opel, Vauxhall, Peugeot, DS and Citroen brands before the whole entity can start delivering profits associated with achieving economies of scale. Don't get me wrong - I believe that a consolidation and technology unification is vital to the success of each of these brands - but, to my mind at least, I reckon the synergies will be less natural to leverage.
Synergies will be hard to exploit to the point of mutual benefit for a number of years to come. Renault and Nissan are a good example of the two makers bringing separate and distinct value to the party. I don't see this with the PSA-Opel merger - to my mind there's there's a whole lot of different stuff that's largely the same. Same kind of engines but too many differences, same kind of FWD platforms but again, too many differences, and, the list goes on.
Nissan had all but given up on the compact hatchback segment and started to forge ahead with its brilliant crossover strategy with first the Qashqai and then Juke. Nissan also had bigger, AWD-appropriate platforms to bring to the table whilst Renault could concentrate on building cars that the French are good at building: compact FWD hatchbacks. These synergies in reverse resulted in Captur and Kadjar off Juke and Qashqai product development respectively as well as Micra mkV off the Clio Mk IV's development - itself born out of the Renault-Nissan Platform B/V alliance.
I imagine a considerable expense associated with consolidating the product development, supply chain and manufacturing undertakings associated with the Opel, Vauxhall, Peugeot, DS and Citroen brands before the whole entity can start delivering profits associated with achieving economies of scale. Don't get me wrong - I believe that a consolidation and technology unification is vital to the success of each of these brands - but, to my mind at least, I reckon the synergies will be less natural to leverage.
Centurion
Apex Apex Predator
There's a lot more overlap between PSA and Opel than between Renault and Nissan before their merger. As you mentioned, the latter has competencies is very different segments.
I think the prospects for PSA and Opel are better. Below are a few models which could share everything but exterior design and interior layout, and bring big medium term cost savings.
Viva/C1/108
Corsa/C2/208
Astra/C3/308
Zafira/C4 Picasso/5008
martinbo
Staff member
That's exactly my point Luw, neither brings anything unique to the table. There's a whole deal of detail differences only to end up with much the same thing. How do they go about converging / discarding all of it in order to achieve the commonality you describe above.
Centurion
Apex Apex Predator
There is much sameness and if they are to make anything meaningful of the merger they will need to rethink all three brands as there are numerous crap models that need canned. It could all end up as a farce if there are visionary differences amongst the top guys.
speed_kills
Diesel Dynamiker
What will Peugeot be? The poor man's Opel or the Premium Opel?
martinbo
Staff member
You're missing me mate. The model strategy is easy - the opportunities for commonality are patently obvious.
But tell me this: which front-wheel drive, modular platform do you pursue and which do you discard? What about the production line tooling? Which 3 and 4 cylinder turbo engines do you continue with, which torsion beam rear axle, which transmission technologies etc etc.
It's all the same but different stuff.
EnI
Piston Pioneer
PSA's logic: if it works for VAG (VW, Seat, Skoda, Audi) & Renault (Renault, Dacia, Nissan) it will work for us as well (Citroen, DS, Peugeot, Opel / Vauxhall).
Modular platforms + powertrains are the future. And so are "modular", "rebranded" products. Different styling, different entry prices, different top features etc.
And PSA is keeping cooperation with GM in the field of electrification & fuel cell tech. GM also got an option to take a share in PSA in the near future.
Modular platforms + powertrains are the future. And so are "modular", "rebranded" products. Different styling, different entry prices, different top features etc.
And PSA is keeping cooperation with GM in the field of electrification & fuel cell tech. GM also got an option to take a share in PSA in the near future.
Giannis
Staff member
I don't like to correct people, but the C2 has been discontinued for ages now and Citroen has the C3 (a car with worse interior plastics than my mop bucket) against the Corsa and 208, and the C4 against the Astra and 308.
But will it work?
Peugeot and Citroen already compete against each other, as DS is marketed as an upmarket alternative, and Opel/ Vauxhall competing products are priced similarly (if not just like) Peugeot and Citroen models.
As Citroen launched an upmarket sub-brand (DS) to create some artificial differentiation, the PSA group has yet to further differentiate Peugeot and Citroen.
So, where will Opel sit in all this?
klier
Premium
^ I am going to need my glasses to read that, the letters simply are too small to read!
In Europe, people don't even know Vauxhall exists.
True story.
And soon we will also forget England exists, but that's a whole different subject.
LOL so what? What kind of a measure is this? The rear windows of a BMW 6er aren't operational either.
But overall yeah, DS brand is a non brand. Nobody is stupid enough to see this as a brand, because they simply are overpriced Citroens.
In Europe, people don't even know Vauxhall exists.
True story.
And soon we will also forget England exists, but that's a whole different subject.
LOL so what? What kind of a measure is this? The rear windows of a BMW 6er aren't operational either.
But overall yeah, DS brand is a non brand. Nobody is stupid enough to see this as a brand, because they simply are overpriced Citroens.
Forza
Turbo Tüftler
Communication Opel/Vauxhall : Closing with Groupe PSA and leadership changes
August 1, 2017
The sale of Opel Automobile GmbH with its brands Opel and Vauxhall by General Motors to Groupe PSA has been finalized now. “It is a historic day,” said Opel Automobile GmbH CEO Michael Lohscheller. “We are proud to join Groupe PSA and are now opening a new chapter in our history after 88 years with General Motors. We will continue our path of making technology `made in Germany´ available to everyone. The combination of our strengths will enable us to turn Opel and Vauxhall into a profitable and self-funded business. We have set ourselves the clear target of returning to profitability by 2020.”
“We are witnessing the birth of a true European champion today,” emphasized PSA Chairman of the Managing board Carlos Tavares. “We will assist Opel and Vauxhall’s return to profitability and aim to set new industry benchmarks together. We will unleash the power of these iconic brands and the huge potential of its existing talents. Opel will remain German, Vauxhall will remain British. They are the perfect fit to our existing portfolio of French brands Peugeot, Citroën and DS Automobiles.” The market share of the enlarged Groupe PSA is now around 17 percent in Europe, making it the continent’s second largest carmaker with first or second place in main markets.
As already assured when the contract was signed in March, all employee codetermination rights will remain unchanged.
The Opel/Vauxhall management team will work on a plan for the future in the next 100 days. “We are eager to build the plan with PSA’s support and obviously together with our partners from the Works Council and the unions,” said Opel CEO Lohscheller. Synergies within the Groupe PSA, for example in purchasing and development, are set to play a major part. The combined entity will unlock substantial economies of scale and synergies in purchasing, manufacturing and R&D estimated at €1.7 Bn at run rate. The goal is to generate a positive operational free cash flow by 2020 as well as an operating margin of two percent by 2020 and six percent by 2026.
Today’s start of a new era is accompanied by some important leadership changes. “I am happy to announce that four new members will join my management team,” said CEO Lohscheller:
– Christian Müller, previously Vice President Global Propulsion Systems – Europe and with Opel since 1996, will succeed William F. Bertagni as Vice President Engineering. He will integrate engineering and powertrain in one department.
– Remi Girardon, previously Senior Vice President Group Industrial Strategy at Groupe PSA, will succeed Philip R. Kienle as Vice President Manufacturing.
– Philippe de Rovira, previously Group Controller at Groupe PSA, will become the new CFO of Opel, following Michael Lohscheller.
– Michelle Wen, Group Supply Chain Management Network Director at Vodafone Procurement, will be joining the Opel leadership team effective September 1 replacing Katherine Worthen currently Vice President Purchasing and Supply Chain. All other moves are with immediate effect.
“We thank Katherine Worthen, William F. Bertagni and Philip Kienle for all their contributions to Opel/Vauxhall and wish them all the best for the next chapter of their careers within General Motors,” said Opel CEO Lohscheller. “And we cordially welcome Michelle Wen from Vodafone as well as Remi Girardon and Philippe de Rovira from Groupe PSA. I am looking forward to working with these new team members who will reinforce the potential of our leadership team.”
Going forward, Michael Lohscheller is planning with a much leaner management structure, including the number of direct reports. “We are reducing complexity and increasing speed,” said Lohscheller. “I am looking forward to shaping the next chapter of Opel/Vauxhall with the new management team and leading our company into a successful future. The owners and the employees will not be the only ones to benefit from ever stronger Opel and Vauxhall brands – our customers will do so too.”
PSA and Opel/Vauxhall have been working together since 2012. The cooperation so far includes four vehicles from Opel. The first model, the Opel Crossland X, has been available at dealerships since the end of June. The Opel Grandland X SUV in the next higher segment follows in the fall. The successor of the Opel Combo light commercial vehicle will come onto the market next year and as of 2019 the next generation of the best-selling Opel Corsa will be launched.
Opel/Vauxhall and Groupe PSA will continue to work with General Motors in the future. In addition to development in the area of electric propulsion, Opel plants will continue to produce vehicles for the GM brands Buick and Holden.
In parallel, the acquisition of GM Financial’s European operations is under way, subject to validation by the different regulatory authorities’ review and is scheduled for the second half of 2017.
https://www.automotiveworld.com/new...uxhall-closing-groupe-psa-leadership-changes/
August 1, 2017
The sale of Opel Automobile GmbH with its brands Opel and Vauxhall by General Motors to Groupe PSA has been finalized now. “It is a historic day,” said Opel Automobile GmbH CEO Michael Lohscheller. “We are proud to join Groupe PSA and are now opening a new chapter in our history after 88 years with General Motors. We will continue our path of making technology `made in Germany´ available to everyone. The combination of our strengths will enable us to turn Opel and Vauxhall into a profitable and self-funded business. We have set ourselves the clear target of returning to profitability by 2020.”
“We are witnessing the birth of a true European champion today,” emphasized PSA Chairman of the Managing board Carlos Tavares. “We will assist Opel and Vauxhall’s return to profitability and aim to set new industry benchmarks together. We will unleash the power of these iconic brands and the huge potential of its existing talents. Opel will remain German, Vauxhall will remain British. They are the perfect fit to our existing portfolio of French brands Peugeot, Citroën and DS Automobiles.” The market share of the enlarged Groupe PSA is now around 17 percent in Europe, making it the continent’s second largest carmaker with first or second place in main markets.
As already assured when the contract was signed in March, all employee codetermination rights will remain unchanged.
The Opel/Vauxhall management team will work on a plan for the future in the next 100 days. “We are eager to build the plan with PSA’s support and obviously together with our partners from the Works Council and the unions,” said Opel CEO Lohscheller. Synergies within the Groupe PSA, for example in purchasing and development, are set to play a major part. The combined entity will unlock substantial economies of scale and synergies in purchasing, manufacturing and R&D estimated at €1.7 Bn at run rate. The goal is to generate a positive operational free cash flow by 2020 as well as an operating margin of two percent by 2020 and six percent by 2026.
Today’s start of a new era is accompanied by some important leadership changes. “I am happy to announce that four new members will join my management team,” said CEO Lohscheller:
– Christian Müller, previously Vice President Global Propulsion Systems – Europe and with Opel since 1996, will succeed William F. Bertagni as Vice President Engineering. He will integrate engineering and powertrain in one department.
– Remi Girardon, previously Senior Vice President Group Industrial Strategy at Groupe PSA, will succeed Philip R. Kienle as Vice President Manufacturing.
– Philippe de Rovira, previously Group Controller at Groupe PSA, will become the new CFO of Opel, following Michael Lohscheller.
– Michelle Wen, Group Supply Chain Management Network Director at Vodafone Procurement, will be joining the Opel leadership team effective September 1 replacing Katherine Worthen currently Vice President Purchasing and Supply Chain. All other moves are with immediate effect.
“We thank Katherine Worthen, William F. Bertagni and Philip Kienle for all their contributions to Opel/Vauxhall and wish them all the best for the next chapter of their careers within General Motors,” said Opel CEO Lohscheller. “And we cordially welcome Michelle Wen from Vodafone as well as Remi Girardon and Philippe de Rovira from Groupe PSA. I am looking forward to working with these new team members who will reinforce the potential of our leadership team.”
Going forward, Michael Lohscheller is planning with a much leaner management structure, including the number of direct reports. “We are reducing complexity and increasing speed,” said Lohscheller. “I am looking forward to shaping the next chapter of Opel/Vauxhall with the new management team and leading our company into a successful future. The owners and the employees will not be the only ones to benefit from ever stronger Opel and Vauxhall brands – our customers will do so too.”
PSA and Opel/Vauxhall have been working together since 2012. The cooperation so far includes four vehicles from Opel. The first model, the Opel Crossland X, has been available at dealerships since the end of June. The Opel Grandland X SUV in the next higher segment follows in the fall. The successor of the Opel Combo light commercial vehicle will come onto the market next year and as of 2019 the next generation of the best-selling Opel Corsa will be launched.
Opel/Vauxhall and Groupe PSA will continue to work with General Motors in the future. In addition to development in the area of electric propulsion, Opel plants will continue to produce vehicles for the GM brands Buick and Holden.
In parallel, the acquisition of GM Financial’s European operations is under way, subject to validation by the different regulatory authorities’ review and is scheduled for the second half of 2017.
https://www.automotiveworld.com/new...uxhall-closing-groupe-psa-leadership-changes/
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