General Motors was unable to turn a profit at Opel and Vauxhall for 17 years, and now it’s PSA Groupe’s chance. The French automaker announced it will present Opel and Vauxhall’s future business plans this Thursday.
In its official release, Opel and PSA did not disclose specifics, but German newspaper Frankfurter Allgemeine Zeitung reports Opel will place a major emphasis on electrification technology for all of PSA Groupe. PSA will reportedly cut the number of models Opel sells and also introduce the brand into the new, undisclosed markets. Finally, Opel will focus on high-margin segments, though it’s unclear what the brand identifies as “high margin.”
With the business plans, Opel’s technical center in Rüesselsheim will become PSA’s electrification hotbed.
Finally, all future models will include PSA technology, including platforms, engines, and transmissions to achieve CO2 reduction targets and improve economies of scale. With the plan PSA CEO, Carlos Tavares, wants Opel to break even in 2019 and post a 2 percent operating margin in 2020.
As for Vauxhall, that’s unclear. The German newspaper did not report any information on the British brand, though we know PSA will decide the fate of the Ellesmere Port assembly plant this year. The plant could close due to uncertainty surrounding Brexit.