The latest issue of the Automotive News Europe monthly magazine is ready to view.
The new edition looks at the next steps PSA will need to take to make its purchase of Opel and Vauxhall a success.
There will be shock waves in the France- and Germany-based companies and in the overall European automotive sector as PSA-Opel makes big changes. To achieve PSA’s goal of returning Opel/Vauxhall to profit with an operating margin of 2 percent within three years and 6 percent by 2026, industry experts predict that up to three PSA-Opel plants will close and 5,000 workers will be laid off. In addition, one of the combined group’s four volume brands may eventually shut down, some analysts say. All those moves are considered overdue adjustments in a saturated European market with chronic production overcapacity. Our cover story looks at the next big steps that will need to be taken.
One of those will be addressing what many industry watchers consider Opel/Vauxhall’s biggest problem: pricing. PSA CEO Carlos Tavares, who values profit over volume, can’t be pleased with data showing that Opel/Vauxhall sold nearly 40 percent of its cars in Europe’s five biggest markets via low-margin special channels. PSA’s near-premium DS brand is also struggling in this area. Fortunately, Tavares has a knack for fixing this problem.