Opel and Vauxhall both have a future under France’s PSA Groupe, which obtained both brands and General Motors’ European operations in this year’s sale. Now, PSA revealed Opel and Vauxhall’s future strategy, and Opel will become quite French in the process.
All Opels will move to a PSA platform and PSA will reduce the number of platforms for the brand’s cars from nine to just two. The automaker spelled out a similar strategy for powertrains with a reduction 10 combinations to four in the future. Platform and powertrain streamlining will ideally create synergies of €1.1 billion by 2020. PSA will also push forward with Opel’s electrification plans and wants its entire lineup to feature some sort of electrified powertrain by 2024.
Speaking of 2020, the plan calls for Opel’s return to profitability by the same date with a 2 percent operating margin. In 2026, PSA targets a 6 percent operating margin. Meanwhile, PSA will reduce Opel vehicle deliveries to 800,000 units. Opel delivered over 1 million cars last year but still lost $257 million.
Finally, PSA will take Opel into new unnamed markets. Specifically, Opel will enter more than 20 new export markets by 2022. PSA CEO Carlos Tavares previously said Opel holds a unique benefit for its business since many consumers would not consider a French car. The German marque is, inherently, more appealing to some consumers—even if the future cars hide their French accents.
Most importantly, PSA will avoid any forced redundancies, which is good news for Opel and Vauxhall workers.