Opel CEO Karl-Thomas Neumann recently stated that the alliance with French automaker PSA Peugeot Citroën was the wrong direction for the company.
“It was a big mistake for Opel to search for scale with PSA and not within GM,” Neumann said, referring to the alliance with Peugeot.
The cooperation began in early 2012, when General Motors purchased a 7 percent stake in PSA Peugeot Citroën for $335 million in hopes of saving approximately $2 billion annually between both partners within about five years. At the time, the move was painted as a measure to bring GM’s European operations to profitability.
Initially, the alliance set out to embark on efficiencies in the form of a joint parts sourcing operation as well as the joint development and production of the following four common vehicle programs:
- A compact-class Multi-Purpose Van for Opel/Vauxhall and a compact-class Crossover Utility Vehicle for the Peugeot brand
- A Multi-Purpose Vehicle program for the small car segment for Opel/Vauxhall and the Citroen brand
- An upgraded low CO2 small car segment platform to feed Opel/Vauxhall’s and PSA’s next generation of cars in Europe and other regions
- A joint program for mid-size cars for Opel/Vauxhall and the Peugeot and Citroen brands
The alliance was also rumored to explore collaboration in international markets, such as Brazil and India. There were also rumors about PSA completely absorbing Opel-Vauxhall.
With time, the collaboration began to hit roadblocks, resulting in the the joint vehicle programs being pared back (canceling the the midsize and compact car) — something that we here at GM Authority have recommended all along. The vehicle programs that were initially slated to be developed jointly will now use the platforms from within Opel parent company General Motors.
In addition, in December of 2013, General Motors sold its stake in PSA Peugeot Citroen, while opting to continue the alliance. Today, the two automakers are jointly working on two MPV vehicle programs, including what will become the next-generation Opel-Vauxhall Meriva and Zafira (and any PSA Peugeot Citroën equivalents), as well as a light commercial vehicle project.
The GM Authority Take
As we’ve been saying it all along: GM has, and has always had, enough scale within itself to compete cost-effectively in Europe, and in any other market in the world. Regardless, it’s great that Opel’s chief recognizes that Dan Akerson’s plan to getting in bed with PSA was a mistake. Here’s to hoping that The General learns from this experience to fend off other suitors.
Comments
Opel should be united in all but name with Chevrolet seeing as both brands cover the value segment. The new Astra, hyped as a Focus Fighter, would make for a ridiculous Buick in North America.
Opel must partner with its parent company. With this said, I’d like to see GM achieve greater buying scale via partnership with PSA.
Opel and PSA should partner on European only models and it might be smart for Opel to completely outsource these models to PSA as opposed to GM Korea.
GM, as a larger company, might benefit from selling certain niche PSA models in NA which would save greatly on development costs
I’m in the minority in thinking a wider GM stake in PSA would have been a great way to reduce capital expenses.
I can not think any Peugeot models that would do well for GM in NA. The models they have from the 108 to the 308GT can all be duplicated and bettered within the existing worldwide GM portfolio.
Opel will return to profitability by 2017 (2016 will be a miss due to Russian trouble ) and really have no use for Peugeot.
GM who sold 9.9 million units can not learn anything from a manufacturer that could not reach 3 million units last year.
Opel can get their economies of scale from a deeper tie up with other GM brands even beyond Buick.
Sorry guys, but Neumann didn’t say that. He said that teher is no reason to cooperate with Fiat. Opel should work and share platforms and so on within GM and wehre it is not possible Opel should cooperate with PSA. That’s exactly the opposite from what you are writing here.
There mus be a mistake in the translation.
@ stepehn Marcus:
I am living here in Europe, I have seen and sit in many Chevrolets, I am driving Opel for years, have driven nearly all current models. And you can finally belive me that using Chevy cars under the Opel Name would kill the brand, would be the end of GM Europe. Chevy can’t compete with Opel in Europe, maybe in other markets like Australia, China or the US (we don’t know) but not in Europe where tastes are completely different.
Please stop repeating this nonsense all the time. Europenas don’t like the Chevy cars, Europeans don’t like the American car philosophy…that’s the reason why Chevy never succeeded in Europe and why Chevy had to leave the European market.
And by the way without Opel, Buick and Holden are death…So if you want GM to be a small sized car company that is limited to America and China then GM should align Opel to Chevy.
Of course he did: http://de.reuters.com/article/companiesNews/idDEKBN0OD22A20150528
And he is obviously right (as he is most of the time so far; fingers crossed).
The Reuters article must be wrong or at least wrong translated.
This statement doesn’t fit to what Neumann said many times before and what he said recently concerning Fiat.
Beside that why is it wrong to cooperate with PSA?
PSA is building very fine award winning engines. GM (beside Opel) hasn’t any competitive platform which fits to cars like Zafira and Meriva!
GM hasn’t any competitive LCV…so why shouldn’t Opel use (very light and competitive!) PSA platforms to underpin the next generation Meriva, Zafira and Combo? I think these platforms fit far better to the European market then any American or Korean developed platform ever could.
And beside that Opel is too small develop a Meriva/Zafira-only platform… cars there is no real market outside of Europe.
First of all, how do you know if he did or didn’t say that? It clearly says it in the linked source. What are you even talking about?
Second of all, the reason NOT to work with PSA is because Opel can and should look for scale deep inside GM as a whole, which also builds very competitive architectures (especially the new ones). GM-Opel need to better themselves by partnering with themselves; not partner with a competitor to benefit a competitor.
Third: GM can adapt (like it has been) it’s competitive platforms for MPV use. And it must develop and LCV for Europe and global markets, including America. Look to Ford for the execution.
I don’t know it absolutely but this reuters article contradicts to everything you can read these days in Germany about the same topic and to everything Neumann said in the past.
As far as I know Ford is the only car maker in Europe which develops ist LCV without any partner. Even Volkswagen cooperates with Mercedes.
@Abu Manta:
Reuters does not cite any sources. They just claim that “Neumann said”… but when? where? at which occasion? to whom?
At this level, this is nothing more than a rumour.
I am not saying Opel should be selling Chevrolet cars, but the reverse. Like Ford, Chevrolet could benefit from European derived vehicles. This becomes even more true in light of Chevrolet’s new 5 billion JV to produce new platforms for the developing world which would essentially isolate US operations.
The new Chevrolet line up is fantastic but a waste of capital if not global in scope. It will also damage Buick by creating a Malibu on par with Regal;Cruze on par with Verano;Impala on par with LaCrosse.
It’s time to merge Chevrolet, Opel, Vauxhall and Holden and then allow Buick to partner with both Opel and Cadillac.
You misunderstood, I wish to see Chevrolet sell Opel-sourced products in major segments much like One Ford relies on European design.
Most Chevy cars (Cruze, Malibu, Impala) are based on Opel platforms and technology.
This would allow for Buick to move further upmarket.
I know everyone will disagree with me.
ahhhhaa FOCUS fighter . idont want to be focus fighter. I want to be the least vw golf fighter.
the big problem is the ability of GM cooperation. GM can not and will not be able to work with different producers. gm shop could even collaborate within the company.
GM has a great many products have gone bankrupt and a very difficult situation. GM did not know how to use the enormous opportunities.
learn VAG group;
VAG Group buys all manufacturers over the world, and will make them successful and earns himself a great value, and becomes more and more successful.
New GM leadership has begun to do a better job and things have changed for the better but I still have a lot to do and learn. New GM management team is still very new. old management team idiots let gm completely bankrupt, and it is difficult to get out of the hole.
PSA is a very strong and decent producer.
GM learn to VAG group
GM has not been able to work together, even within the company and the various warring units. ok now things have changed for the better.
But even many of those interested gm of his quarrel between lovers who are different producer.
gm in various forums, at least, it caught the eye.
GM will soon consist of only one product, and the car. ahhaaaaa
gm learn to VAG group. go to school vag group
what happend to SAAB sweden tehnology and know how. VAG wants to by SAAB and VOLVO too ahhaaaa
Well, I think cooperation between automobile manufacturers is a very good thing.
But said that, the idea of cooperating with PSA was based on the erroneous Detroit idea, that the European market need Europe specific cars, which can’t be sold anywhere else, and that this market is just too small for GM to tackle it alone. But the Meriva A was designed and built together by GM Brasil and Opel, and was a success of both sides of the Atlantic. How about the Brasilian successor, the Chevrolet Spin?
At the same time, in Detroit they develop (in 2015!) cars with left-hand steering only, instead of, as any thinking marketing manager would prescribe, as cars which can be built as LHD and RHD right from the start and do not need some costly and time consuming re-engineering. GM did still not overcome their provincialism.
Remember the advertisement contract GM has concluded with the English Manchester United football enterprise for the Chevrolet brand? The only Chevrolet cars which GM provided for the Man U stars to drive as showcases are the Spark and Aveo and Cruze… whereas the cars in the Chevrolet portfolio like the Corvette and to some extend Camaro, cars which would match what those million pound heave football stars are used to drive, are available only with left hand steering in left side driving Britain. The latest development is that thoose Man U stars are now being contractually forced to drive those small Korean Chevrolets for a few hours per month. Really ridiculous.