PSA Groupe and Opel presented the latter’s turnaround plan last November, and the automaker’s board could reward its top executive with a healthy sum.
PSA CEO Carlos Tavares could be in for a $1.2 million bonus for his work with the Opel turnaround plan, called PACE, according to an Automotive News Europe report last Wednesday. After closing the deal last July, Tavares vowed to present Opel’s recovery plan within 100 days—a commitment he fulfilled last November.
The plan calls for greater synergies between Peugeot, Citroen, Opel and Vauxhall cars while cutting costs from ever Opel vehicle produced. Additionally, it lowers Opel’s break-even point to 800,000 vehicles while cutting sales from less profitable channels. Since 1999, Opel has lost money and failed to turn a profit under General Motors’ own turnaround plan.
The bonus is part of the board’s strategy to make the PACE plan succeed and turn Opel into a profitable business. Tavares will be eligible for additional bonuses over the next three financial years should Opel’s turnaround come to fruition. The board will vote on Tavares’ first $1 million-plus bonus on April 24.