The PSA Group has unveiled its plans to make Vauxhall and Opel a success following its acquisition of the firm earlier this year. Highlights include launching all future products on PSA platforms - including an all-new Corsa in 2019 - and setting the goal of keeping all current plants including Ellesmere Port and Luton in the UK open, although potentially on altered terms.
Vauxhall and Opel declared losses of £190 million in the second quarter of 2017; daily losses at the firm under GM ownership were estimated to be in the region of £3m on average. PSA Group announced its plans to take over Vauxhall and Opel from parent company GM in March 2017. Carlos Tavares, the CEO of the PSA Group, has described the need to implement the plan "as a matter of urgency", citing the losses and calling for the workforce, union and suppliers to pull together to find solutions to the issues the firm currently faces.
The announcement, made by newly appointed CEO of Opel Automobile GmbH, Michael Lohscheller, included:
- Setting the goal of returning Vauxhall and Opel to profit by 2020.
- Achieving an operating margin of 2% by 2020.
- Instigating measures to make the breakeven point for the firm 800,000 sales a year.
- A pledge to “modernise” all plants with the goal of keeping them all open.
- A pledge to launch one new major new model per year.
- Offering electrified versions of all Vauxhall and Opel cars by 2024.