Opel’s losses didn’t reach the rumored figure of $1 billion, first reported by local German media, but the troubled brand still failed to turn a profit. Automotive News Europe reported on Tuesday that the former GM division posted a loss of €179 million, or roughly $222 million USD, in 2017.
Despite the loss, PSA Groupe CEO Carlos Tavares remained positive on the brand’s outlook and said the automaker’s turnaround plan for the brand has already produced a 17 percent reduction in Opel’s fixed costs.
“We know we can turn around this company,” Tavares said. “Is it easy? No. If it was, somebody else would have done the job before.”
Tavares did not say whether Opel is now breaking even after the cost reductions, but some analysts believe that point will come sometime this year. Opel has remained in the red since 2000.
The fixed-cost savings have largely come from greater synergies between PSA’s other brands, Peugeot and Citroen. The brand has saved over $20 million in media materials and seen a 39 percent reduction in information technology costs since PSA took the brand on. Future vehicles will also share quite a bit with other PSA brands.