Now, PSA is preparing Opel and its operations for inbound cost-cutting measures, according to Automotive News Europe. PSA CEO Carlos Tavares commented on Opel during a roundtable discussion during the 2017 Frankfurt Motor Show. There, he said Opel cannot continue operating in its current fashion and expect profitability.
“The only answer for an Opel future is to make the company profitable. The only thing we cannot afford is the status quo,” he said.
With the acquisition of Opel, PSA has now gained another 3,000 engineers, though most of them have focused on projects exclusively for GM. Tavares made it clear it doesn’t plan a mass exodus of employees, though.
“With Opel, our development capacity has grown by 50 percent. We now have the great opportunity to use this development power.”
Tavares added most necessary job cuts had already taken place in 2009 when the global financial crisis forced tough decisions for many global businesses. However, it seems clear there will eventually be reductions in employees, or potential factories, under PSA ownership. PSA will also move quickly to integrate vehicles onto its architectures.
PSA will support Opel’s business plans, and Tavares noted Opel is building its working on a turnaround plan, which will be presented to the French automaker in November.