PSA Group completes acquisition of Opel and Vauxhall from GM

General Motors had been in talks with PSA group to sell two of its brands - Opel and Vauxhall. The deal has been finalized and PSA group will be taking over these brands which have been with GM for the last 88 years.

PSA now has Peugeot, Citroen, DS Automobiles, Opel and Vauxhall under them. They have now become the second largest carmaker in Europe after the Volkswagen group with a market share of 17%. The group now aims to save an estimated € 1.7 billion across purchasing, manufacturing and R&D by using component sharing and using same platforms across the range. Then Opel/Vauxhall team will work on a plan for the next 100 days with a goal of a positive cash flow by 2020 as well as an operating margin of two percent by 2020 and six percent by 2026.

Since 2012, the companies have been working together with PSA and currently have 4 models under the collaboration - Opel Crossland X which is on sale, Crossland SUV available later this year, the successor of Opel Combo light commercial vehicle in 2018 and the Opel Corsa in 2019.

PSA will also be working with GM on their development in the area of electric propulsion systems. Opel plants will also continue to manufacture cars for the GM's Buick and Holden brands. The acquisition of GM Financial's European operations is also in progress pending a review by the various regulatory authorities and is scheduled for the second half of 2017.

The group is also looking to enhance its global footprint and has signed a deal with CK Birla group to start production at their facility in Chennai. They are expected to start Indian operations by 2019 and introduce 3 cars by 2020.