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PSA CEO Carlos Tavares reassured shareholders over the acquisition of Opel from GM, saying that the purchase will vault the automaker "far ahead" of its French rival Renault.
PSA CEO Carlos Tavares expects Opel to lose more money this year as it acquires the business from GM. However, the brand is recovering, Tavares said, highlighting growth in vehicle sales.
Opel, which is being sold to France's PSA Group, has committed to producing Buick-branded vehicles in German factories for GM beyond 2019.
Buick's Regal plan: No sedan; White House seeks to slash EPA testing funds; Lexus pulls ads from 'O'Reilly Factor'; BMW union plans strikes; Pinterest emerges as car-marketing tool.
Now that the dust has settled on the industry's deal of the year, the hard work will start for those trying to make PSA's purchase of GM's Opel a success.
Under GM's ownership, Opel avoided the fate of former sibling Saab, which vanished after the brand was starved of product. But the tie-up with PSA will change all that.
Closing plants and laying off workers would be the quickest and easiest way to fix Opel's problems, but PSA Group CEO Carlos Tavares wants to avoid that.
GM will pay Opel's senior managers million-euro bonuses following the sale of the German brand to PSA, regardless of whether the executives remain with the company, a German report said.
While GM management sits glued to Detroit desks and worries about finances, Ghosn, Tavares, Zetsche, Fields and Marchionne are personally involved in the international automotive marketplace.
If you can't build decent cars in Germany, where car talent exists in overabundance, then it is management that is inept, a reader writes.
France's consumer fraud watchdog cleared GM's Opel unit of suspected diesel-emissions cheating. The watchdog has previously sent files to prosecutors detailing suspected emissions fraud by Fiat Chrysler, Renault and PSA.
PSA Group's acquisition of Opel gives the French automaker greater scale to pursue global expansion plans, family shareholder Jean-Philippe Peugeot told a German newspaper.
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