Photo: Vauxhall
Having acquired Opel and Vauxhall from General Motors, the biggest challenge for Groupe PSA was to help the two brands turn a profit. Chief executive officer Carlos Tavares confirmed the news, reporting a profit of $978 million in 2018 compared to losses of $204 million in 2017.
Everyone knows General Motors is bad at business, but the turnaround of Opel and Vauxhall speaks volumes. The tremendous results come at a time when GM is expected to “leave” Australia by selling the import business to Inchcape Motors.
“Having overpassed the initial targets of the Push to Pass plan for the period from 2016 to 2018,” the French group announced even more ambitious targets for 2019 and 2021. Straight to the point, PSA wants to “deliver over 4.5 percent automotive recurring operating margin on average.”
Taking a second to analyze the turnaround in greater depth, how do you feel about Groupe PSA turning a profit on Opel and Vauxhall in the first year of ownership? There’s no denying the management at General Motors was rubbish, but the French mothership wants to make sure that Opel and Vauxhall remain profitable and integral to the group.
One explanation for these results is how Tavares approached the workers union in Germany, cutting jobs at uncompetitive factories. Eliminating discounts also helped, and as the 2020s draw closer, Opel and Vauxhall will go electric on levels that General Motors couldn’t have imagined back when Detroit was calling the shots.
The Corsa F will receive an all-electric option with the 50-kWh battery and front-mounted motor of the Peugeot e-208. The subcompact hatchback promises to be cheaper than the Ampera-e thanks to the group’s synergies and localized production.
Turning our attention to the Ampera-e, what’s known as the Chevrolet Bolt in the United States is not doing too great in terms of sales. 18,019 units were sold in 2018, down from 23,297 the year prior. Worse still, General Motors didn’t do anything to improve its EV despite the arrival of the Hyundai Kona Electric and Tesla Model 3.
“Having overpassed the initial targets of the Push to Pass plan for the period from 2016 to 2018,” the French group announced even more ambitious targets for 2019 and 2021. Straight to the point, PSA wants to “deliver over 4.5 percent automotive recurring operating margin on average.”
Taking a second to analyze the turnaround in greater depth, how do you feel about Groupe PSA turning a profit on Opel and Vauxhall in the first year of ownership? There’s no denying the management at General Motors was rubbish, but the French mothership wants to make sure that Opel and Vauxhall remain profitable and integral to the group.
One explanation for these results is how Tavares approached the workers union in Germany, cutting jobs at uncompetitive factories. Eliminating discounts also helped, and as the 2020s draw closer, Opel and Vauxhall will go electric on levels that General Motors couldn’t have imagined back when Detroit was calling the shots.
The Corsa F will receive an all-electric option with the 50-kWh battery and front-mounted motor of the Peugeot e-208. The subcompact hatchback promises to be cheaper than the Ampera-e thanks to the group’s synergies and localized production.
Turning our attention to the Ampera-e, what’s known as the Chevrolet Bolt in the United States is not doing too great in terms of sales. 18,019 units were sold in 2018, down from 23,297 the year prior. Worse still, General Motors didn’t do anything to improve its EV despite the arrival of the Hyundai Kona Electric and Tesla Model 3.
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