If it succeeds in acquiring General Motors’ European subsidiary Opel-Vauxhall, French automaker PSA Group expects to grow the cumulative sales volume of the combined company.
Speaking to reporters during PSA’s earnings conference last week, PSA chief executive Carlos Tavares said that the company would aim to sell more than 5 million vehicles annually within “a few years” if it closes the deal to buy Opel. Speaking to Reuters, sources familiar with the projections believe that the time frame for the target is between 2020-2022. The target spans PSA’s current markets of Europe, China, and South America, but does not include North America, which the automaker plans to enter in roughly ten years.
PSA and GM Europe delivered a combined 4.3 million vehicles in 2016, of which:
- PSA delivered 3.15 million, an increase of 5.8 percent over 2015, and
- GM Europe (Opel-Vauxhall) delivered 1.18 million, a 4 percent increase over 2015
In other words, getting to the 5 million units mark would require the combined entity to increase sales volume by approximately 700,000 units.
PSA is in advanced negotiations to buy GM’s European Opel-Vauxhall subsidiary. Informally known as Opel, the unit consists of the Opel brand, which is sold all over Europe except for the United Kingdom, as well as the British Vauxhall brand, which is sold exclusively in the U.K. The two firms are reportedly looking to finalize negations by March 1, prior to the start of the 2017 Geneva International Auto Show.