PARIS -- PSA Group plans an engineering blitz to redevelop Opel's core models with its own technology if it succeeds in buying General Motors' European arm, company sources and advisers told Reuters.
PSA wants to build the next Corsa subcompact car on the same architecture as its Peugeot 208 and Citroen C3 models, several sources said.
This presents a tough challenge as the Corsa is due for an update in two years, leaving little time for a major reworking of its design. PSA's alternative, however, would be to wait until around 2025 - the end of its next model cycle - to tap cost savings in the best-selling vehicle category.
CEO Carlos Tavares outlined the plan at a PSA board meeting on Wednesday, one source said. The aim would be to fuse the small car categories that PSA and GM failed to combine under a looser 2012 alliance that missed key targets.
Tavares refused on Thursday to comment on the details of possible PSA-Opel vehicle programs as he presented record PSA earnings to reporters and analysts, stressing that the acquisition had yet to be agreed with GM. But he said the combined company would aim to sell more than 5 million vehicles annually within "a few years." PSA and GM Europe delivered 4.3 million vehicles between them last year.