Opel Now Part of the PSA Group

March 7, 2017

The mergers and acquisitions game continues in the automotive industry. After Renault-Nissan purchased a stake in Mitsubishi Motors recently, it’s PSA’s turn to buy into long-time General Motors subsidiary Opel. The French firm announced a deal with Opel that amounts to 2.2 billion Euros.

The new PSA-Opel merger is expected to generate annual savings of some 1.7 billion Euros by the year 2026. At present, Opel is losing money at a fast rate, with loses amounting to around $9 billion since 2009. This has prompted parent company General Motors to cut ties with the Opel brand—a company that it has owned for almost 90 years.

The new deal includes the German-based carmaker, its UK- marque Vauxhall, and its financing unit BNP Paribas SA. This is projected to put PSA as the second largest automotive brand in Europe, next only to Volkswagen.

While GM will be able to cut its loses with the sale of Opel, the American auto giant will be allowed to buy shares of PSA. Opel will likewise continue to supply vehicles to GM’ Australia’s Holden, as well as the Buick brand.

As for PSA-Opel, the fruits of their marriage have already been seen in a new compact SUV called the Crossland X. Based on the Citroen C3, the new model promises to rake in more sales for the company. A larger offering is also in the works. And with Peugeot—another PSA subsidiary—having a slew of competent nameplates, we may just see a few of these lending their underpinnings to future Opel models. And voice-versa.

About the Author

Mr. Gerard Jude Castillo
Gerard has been a self-confessed car nut ever since he was a little boy. As a grown-up, he indulges in his passion by collecting toy cars (which he started since childhood) and reading up on the latest cars out there.  As Associate Editor, he will ensure that you get your fill of the latest cars in the market, as well as a load of automotive features.