In March, French automaker PSA Group struck a deal to acquire Opel-Vauxhall unit from General Motors for €2.2 billion ($2.3 billion USD), propelling PSA to become Europe’s second-largest automaker by sales volume.
Though the deal was generally seen as a win for PSA, it did raise a few questions surrounding cannibalization: after all, buying Opel leaves PSA with three brands — Peugeot, Citroen, and the regional Opel/Vauxhall hybrid brand — in the mainstream space, while positioning the DS Automobiles as a “premium” marque. Not so, according to PSA Group leadership, which sees Opel-Vauxhall as being complementary to the French automaker’s existing portfolio.
“Opel is strong in markets where PSA is not so strong,” Peugeot family member and chairman of PSA Group’s strategic committee, Robert Peugeot, was quoted as telling German newspaper Welt am Sonntag.
Specifically, Peugeot mentioned that Opel sells more cars in Germany than Peugeot, Citroen and DS combined. Similarly, Vauxhall sells more cars in Great Britain than the PSA’s three existing marques.
“There is very little cannibalisation between the brands,” Peugeot added.