PSA Group (Peugeot Citroen ) has bought Opel/Vauxhall from General Motors. This will make PSA Group the second-largest automotive company in Europe behind Volkswagen, with close to a 17 per cent market share.
The purchase will have no immediate impact on Citroen (and DS ), Peugeot or Opel dealerships in Ireland, and therefore it is business as usual for Irish new car buyers of each of these brands.
PSA Group expects strong and balanced presence in its home markets will serve as the basis of profitable growth worldwide. It has vowed to return Opel and its British Vauxhall brand to profit.
“We are proud to join forces with Opel/Vauxhall and are deeply committed to continuing to develop this great company and accelerating its turnaround,” said Carlos Tavares, chairman of the managing board of PSA. “We respect all that Opel/Vauxhall’s talented people have achieved as well as the company’s fine brands and strong heritage.
"We intend to manage PSA and Opel/Vauxhall capitalising on their respective brand identities. Having already created together winning products for the European market, we know that Opel/Vauxhall is the right partner. We see this as a natural extension of our relationship and are eager to take it to the next level.”
The transaction should allow substantial economies of scale and synergies in purchasing, manufacturing and R&D. Annual synergies of €1.7bn are expected by 2026 – of which a significant part is expected to be delivered by 2020, accelerating Opel/Vauxhall’s turnaround.