Photo: image edited by autoevolution
As a German car brand, Opel has been lurking in Volkswagen's shadow for as long as I can remember, and I have a pretty long memory.
Before I get a truckload of angry mail, I'm not exactly a full-blown mnemonist, but I do remember the weirdest things sometimes. Things like the fact that the Astra has never outsold its arch nemesis, the Volkswagen Golf, no matter how hard it has tried in 5 different generations. Similar things could be said about the Kadett regarding the Golf, or about the Insignia/Vectra/Ascona concerning the Passat.
Despite Opel's reluctance to advance its status to at least Volkswagen's equal, not to mention passing it, GM's last footing in Europe has created some of the coolest/weirdest cars that came out of Germany in recent years.
It had the audacity to brings vehicles like the hardcore Speedster, the good-looking GT roadster, the weird Signum and the downright insane Zafira OPC, which was a front-wheel-driven people carrier with hot-hatch capabilities. All these came from a manufacturer that has been continuously struggling, so the respect level is even higher from my end.
That said, Opel has never really touched base with my personal expectancies from a car brand, and I'm pretty sure that I'm not exactly part of a minority when I say that there aren't that many die-hard Opel fans out there. Which is strange, especially considering that it's one of the oldest carmakers on the planet, making its first automobile in 1899 and having been founded as early as 1863.
True, it's been under the General Motors umbrella since 1929, and that might have influenced its fortune in the long run, and not necessarily in a positive way. To give an example closer to present times, GM's European footing - which includes both Opel and its RHD brother, Vauxhall – last time posted an annual net profit in Europe back in 1999. Yes, the situation is that dire.
On top of it, the carmaker from Rüsselsheim has almost always had an image problem whenever it tried to change its luck using a new and much-improved model. The previous Insignia was the only car in its segment that had fully orthopedic ergonomic seats, while the current Astra is at least Volkswagen Golf's equal in more than one way. Still, neither model can hold a candle to its direct or indirect rivals concerning sales.
After all said and done, it seems that Groupe PSA is mighty serious about taking over Opel, and if it happens it might trigger a chain of events that will change the entire European automotive industry.
At first glance, PSA doesn't really have that many reasons to buy Opel, especially since a lot of the two carmaker's products are stepping on each other's toes. Consisting of Peugeot, Citroen and DS Automobiles, the PSA Group is already battling itself somewhat, and most of their models have an equivalent in Rüsselsheim.
On the plus side, Opel and Peugeot/Citroen already have a few joint projects, meaning that a further integration of platforms between them would be made a tad easier.
The PSA Group is no stranger to darker days, but it has been on a rising slope since 2014 when it was “rescued” by both the French Government and the Chinese from Dongfeng. With former Renault-man Carlos Tavares at the helm, Peugeot/Citroen is on a rebound nowadays, and the acquisition of Opel would significantly increase its European market share.
While it currently has only a little over 9 percent of the total market share, well below its rivals from Renault, together with Opel it would leap straight into second place, behind the Volkswagen Group. If that's not a good enough reason for VW to worry, then I don't know what is.
Oh, wait, I do know one. If the PSA Group successfully takes Opel from General Motors, what would the Americans do with all that moolah? Sure, the transaction itself won't be that high, despite Opel's history and image. Still, we're certainly talking about at least 4-5 billion, if not more.
Well, that amount of money could be used for a lot of things. For example, the FCA Group has been searching for an investor/partner for quite a while now, and a GM partnership would probably bury Volkswagen even more from an “annual sales” perspective.
In other words, the Volkswagen Group would lose on two fronts. In Europe, it would have to share the market with a much larger corporation, and globally it would simply stand no chance against a giant birthed out of a GM/FCA partnership or alliance.
The buying spree from the Piech era is long gone, Dieselgate is still far from taking its tolls, and its smaller rivals are slowly but surely ganging up on Wolfsburg. With the help of Dongfeng, PSA/Opel has the potential to become the second-largest automaker in Europe, at least for the time being. Who knows what the future might bring?
Sure, there could be a couple of loose ends looking at the smaller picture. Things like the Vauxhall brand and the two GM-Vauxhall car plants in the Brexited UK, or Opel's recent integration of OnStar in Europe.
Those are details that could be sorted out one way or another, though. The only thing that's known for sure is that both General Motors and the PSA Group think that the Opel transaction would be a good deal for all parties involved. And I have a feeling that all these big shot CEOs and managers may have a bigger clue about what's going on than you and I. Let's just wait and see, while also keeping an eye on Volkswagen and FCA in the process.
Despite Opel's reluctance to advance its status to at least Volkswagen's equal, not to mention passing it, GM's last footing in Europe has created some of the coolest/weirdest cars that came out of Germany in recent years.
It had the audacity to brings vehicles like the hardcore Speedster, the good-looking GT roadster, the weird Signum and the downright insane Zafira OPC, which was a front-wheel-driven people carrier with hot-hatch capabilities. All these came from a manufacturer that has been continuously struggling, so the respect level is even higher from my end.
That said, Opel has never really touched base with my personal expectancies from a car brand, and I'm pretty sure that I'm not exactly part of a minority when I say that there aren't that many die-hard Opel fans out there. Which is strange, especially considering that it's one of the oldest carmakers on the planet, making its first automobile in 1899 and having been founded as early as 1863.
True, it's been under the General Motors umbrella since 1929, and that might have influenced its fortune in the long run, and not necessarily in a positive way. To give an example closer to present times, GM's European footing - which includes both Opel and its RHD brother, Vauxhall – last time posted an annual net profit in Europe back in 1999. Yes, the situation is that dire.
On top of it, the carmaker from Rüsselsheim has almost always had an image problem whenever it tried to change its luck using a new and much-improved model. The previous Insignia was the only car in its segment that had fully orthopedic ergonomic seats, while the current Astra is at least Volkswagen Golf's equal in more than one way. Still, neither model can hold a candle to its direct or indirect rivals concerning sales.
After all said and done, it seems that Groupe PSA is mighty serious about taking over Opel, and if it happens it might trigger a chain of events that will change the entire European automotive industry.
At first glance, PSA doesn't really have that many reasons to buy Opel, especially since a lot of the two carmaker's products are stepping on each other's toes. Consisting of Peugeot, Citroen and DS Automobiles, the PSA Group is already battling itself somewhat, and most of their models have an equivalent in Rüsselsheim.
On the plus side, Opel and Peugeot/Citroen already have a few joint projects, meaning that a further integration of platforms between them would be made a tad easier.
The PSA Group is no stranger to darker days, but it has been on a rising slope since 2014 when it was “rescued” by both the French Government and the Chinese from Dongfeng. With former Renault-man Carlos Tavares at the helm, Peugeot/Citroen is on a rebound nowadays, and the acquisition of Opel would significantly increase its European market share.
While it currently has only a little over 9 percent of the total market share, well below its rivals from Renault, together with Opel it would leap straight into second place, behind the Volkswagen Group. If that's not a good enough reason for VW to worry, then I don't know what is.
Oh, wait, I do know one. If the PSA Group successfully takes Opel from General Motors, what would the Americans do with all that moolah? Sure, the transaction itself won't be that high, despite Opel's history and image. Still, we're certainly talking about at least 4-5 billion, if not more.
Well, that amount of money could be used for a lot of things. For example, the FCA Group has been searching for an investor/partner for quite a while now, and a GM partnership would probably bury Volkswagen even more from an “annual sales” perspective.
In other words, the Volkswagen Group would lose on two fronts. In Europe, it would have to share the market with a much larger corporation, and globally it would simply stand no chance against a giant birthed out of a GM/FCA partnership or alliance.
The buying spree from the Piech era is long gone, Dieselgate is still far from taking its tolls, and its smaller rivals are slowly but surely ganging up on Wolfsburg. With the help of Dongfeng, PSA/Opel has the potential to become the second-largest automaker in Europe, at least for the time being. Who knows what the future might bring?
Sure, there could be a couple of loose ends looking at the smaller picture. Things like the Vauxhall brand and the two GM-Vauxhall car plants in the Brexited UK, or Opel's recent integration of OnStar in Europe.
Those are details that could be sorted out one way or another, though. The only thing that's known for sure is that both General Motors and the PSA Group think that the Opel transaction would be a good deal for all parties involved. And I have a feeling that all these big shot CEOs and managers may have a bigger clue about what's going on than you and I. Let's just wait and see, while also keeping an eye on Volkswagen and FCA in the process.
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