American automotive giant General Motors will sell the German car manufacturer Opel to a French company PSA Peugeot Citroen. This news almost fell from the sky but has been approved by General Motors and PSA. The deal is worth 2.2 billion euros. With the acquisition of Opel and its UK brand Vauxhall, PSA Peugeot Citroën will become the second largest European car manufacturer, behind Volkswagen.
The news that PSA is interested in buying Opel and its UK brand Vauxhall, resounded as a big surprise back in February. Of course, at the same time, a big concern has been raised, that the French group (consisting of Peugeot, Citroën and DS Automobiles car brands), if the transaction will be concluded, will reduce the number of jobs outside France.
German Chancellor Angela Merkel immediately committed herself to do everything politically possible to protect jobs and industrial facilities in Germany.
PSA could produce up to 5 million cars annually
With the purchase of Opel, the French multinational corporation will have the capacity to produce up to five million cars a year. Of course, 2.2 billion EUR is a huge amount of money, but the French also know that they can also save a lot with this purchase. Their calculation predicts that by 2026, the total savings will amount to 1.7 billion EUR. The largest part of the savings could go to the reduced investments in the development of new cars and reduce the expensive production in Germany, France, and Great Britain.
Carlos Tavares, the president of the PSA Group, said that with the acquisition of Opel, which by the way ended last year with a loss for the sixteenth consecutive year, a new European car champ is born.
Did you know? PSA is short for Peugeot Société Anonyme.
Opel in the hands of Americans for almost ninety years
German carmaker Opel was founded in 1863. Today, it employs about 35 thousand people. Opel has been owned by American General Motors since 1929. Their annual sales number is about 1.2 million cars.
French group PSA sold 3.15 million vehicles last year. The largest share of sales falls on Peugeot vehicles, 1.92 million. The main market is Europe, where they sold almost two million vehicles last year.
PSA Group main facts
- Founded: 1976, Paris, France
- Number of employees: 184,000
- CEO: Carlos Tavares (from Mar 31, 2014)
- Headquarters: Paris, France
- Revenue: 54.03 billion EUR (2016)
- Net income: 2.149 billion EUR (2016)
Image credit: PSA