A failure to turn around Opel and bring it to profitability will have “very serious” consequences for the division, its workers and for the PSA Groupe as a whole, said the automaker’s Chief Executive Carlos Tavares.
Opel struggled under General Motors, posting financial losses for well over a decade. The division was in the final stages of a turnaround under GM, but was sold prior to the complete execution of the plan.
PSA acquired Opel, along with sister brand Vauxhall, from General Motors earlier this year and has given the division until 2020 to return to profitability.
The plan involves putting Opel-Vauxhall vehicles onto PSA architectures to realize a 1.7 billion euro ($2.0 billion USD) in savings by acquiring the division.
“If it doesn’t succeed it will be very serious for the company and of course for the employees,” Tavares said on Thursday at a conference in Berlin.
At the time of this writing, $1 USD = 0.8494 euros.