PSA Group Buys Vauxhall And Opel From General Motors – Aims For Higher Numbers In Global Sales to give tough time to VW group and Renault Nissan Group
This week, the successful completion of the sales of the splendid Opel, was proudly announced by the General Motors and French automaker, PSA Group. The procurement of Opel, implies that PSA Group is second only to the Volkswagen Group for size among the European automobile fabricators. Around 4.3 million vehicles in 2016, or 17 percent of the market is the total number of combined deliveries for PSA and Opel. The figures comprise those of Vauxhall, which Opel operates under in the United Kingdom. Citroën, DS and Peugeotare the other brands, which form the PSA. PSA Group Buys Vauxhall And Opel to make sure it becomes more competitive in the market.
In conformity with the sales reports, which was first revealed in March, PSA had paid $1.53 billion for the Opel and Vauxhall brands and $1.06 billion for the European division of the GM Financial lending unit. The latter is right now jointly being owned by the PSA and French bank BNP Paribas. General Motors is still responsible for existing pension obligations for Opel’s staff which has been estimated at approximately $3.54 billion dollars.The sale of Opel is the latest and most significant in a series of actions that General Motors has taken up in the recent years to shore up its worldwide operations.
The automaker has also halted its sales in India. Chevrolet’s sales has been stopped at South Africa in addition to some pickup trucks. Sales has also been stopped in Europe and the same is applicable to Holden vehicles in Australia. With the savings procured till now, General Motors plans to invest in higher-return opportunities and new technologies. An informative slide from the company’s investor revealed that the automaker saw serious profit potential for pickup trucks and SUV’s, mainly in the North America.
General Motors has also listed the new business areas of the Automated Vehicles and Transportation as a Service abbreviated asAV/Taas,which represents the self-driving cars and mobility services, as sources of areas producing a really strong potential for profit. PSA, meanwhile, expects to unlock economies of scale with Opel, as well as synergies in purchasing, manufacturing and research and development that are estimated to be worth of an amazing amount of 2 billion dollars. PSA would also widen the horizons of Opel, well out of Europe, even though it is permitted to do it only with the models based on their own platforms. Iran has already been announced as the first new market for Opel.