Opel and Vauxhall have officially been erased from General Motors’ once-sprawling portfolio of brands. While executives in Detroit may be relieved the financial burden has been cast off with the sale of Opel, PSA Groupe has big plans for its latest acquisitions.
In a release, in which the Opel brand and PSA declared a “European champion” has been born, PSA Groupe stated Opel’s operations will return to profitability in 2020. Specifically, a 2 percent operating margin will be achieved by 2020, and a six percent margin is the goal by 2026.
Although the Opel and Vauxhall brands seemingly compete with PSA’s Peugeot and Citroen, PSA believes Opel and Vauxhall unlock a new customer: one that would never consider a French car.
“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,” PSA Chairman of the board Carlos Tavares said.
Opel spent 88 years of its existence under GM leadership, which makes the transition truly a new era for the storied German car maker. Should PSA succeed in doing what GM couldn’t—that is, a return to profitability—it could make for some interesting feelings around the GM Renaissance Center.