PSA Group finalises Vauxhall and Opel buyout and hails it as the ‘birth of a true European champion’

Vauxhall and Opel have now officially joined PSA Group, with the sale of Opel Automobile GmbH finalised in what has been called a “historic day”.

Having acquired the former General Motors brands, PSA Group – the French parent company of Peugeot, Citroen and DS Automobiles – now commands a 17 per cent share of the European car market.

This means it is the second largest car maker on the continent, occupying first or second place in main markets.

Opel Automobile GmbH CEO Michael Lohscheller said: “We are proud to join PSA Group and are now opening a new chapter in our history after 88 years with General Motors.

“We will continue our path of making technology `made in Germany´ available to everyone. The combination of our strengths will enable us to turn Opel and Vauxhall into a profitable and self-funded business.

“We have set ourselves the clear target of returning to profitability by 2020.”

PSA board chairman Carlos Tavares added: “We are witnessing the birth of a true European champion today.

“We will assist Opel and Vauxhall’s return to profitability and aim to set new industry benchmarks together. We will unleash the power of these iconic brands and the huge potential of its existing talents.

“Opel will remain German, Vauxhall will remain British. They are the perfect fit to our existing portfolio of French brands Peugeot, Citroen and DS Automobiles.”

The Opel and Vauxhall management team will work on a plan for the future in the next 100 days, with the goal of reaching an operating margin of two per cent by 2020 and six per cent by 2026.