Industry News

Would You Buy An Opel If It Comes To The US?

Assuming a deal can be worked out between GM and PSA.

Rumors have been rife lately about a potential takeover of Opel from PSA Group, which owns Peugeot and Citroen. While nothing has been formally announced yet, it appears to already be a done deal, as PSA’s chief executive Carlos Tavares has started to outline his vision for the future of the Opel brand, which will involve cutting costs, combining development efforts and exploiting the appeal of German engineering. "This company needs help," Tavares said in a report by Automotive News.

“We believe that there is opportunity to create a European car champion." He also said that merging Opel would make PSA more competitive abroad, as the French automaker would be able to offer a reputable German alternative to customers who would never consider buying a car from a French brand. “The business sense is to make sure that we can capture a wider consumer base. In some markets in the world we have customers who, despite all the progress that we’ve made, will not consider a French brand.” This of course raises the possibility of Opel cars being sold outside of Europe – including the US, where Opels are sold as re-badged Buicks.

Tavares confirmed that selling Opels outside Europe was a possibility, but didn’t mention the US market or go into any further specifics. Should the takeover be finalized, Opel will still remain independent with the turnaround being led by its own executives. Opel has lost about $9 billion since 2009, and PSA was in a similar situation a few years ago, but Tavares successfully turned the company around, generating $2.85 billion in 2016 and raising its net automotive financial position by 49 percent. Clearly, he wants to apply the same success to Opel and sees its potential in other markets. "Not only can we bring a solution and help Opel turn itself around, but we want to keep this company German."

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