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PSA seeks up to $2.1 billion savings from Opel deal, report says

3K views 50 replies 21 participants last post by  SierraGS 
#1 ·
PSA seeks up to $2.1 billion savings from Opel deal, report says
February 22, 2017
Pamela Barbaglia and Arno Schuetze
AutoNews.com

LONDON/FRANKFURT -- PSA Group aims to generate annual cost savings of between 1.5 billion and 2 billion euros ($1.6 billion-$2.1 billion) from its proposed acquisition of Opel/Vauxhall from General Motors, two sources told Reuters.

The savings will come mainly from purchasing and r&d as the Peugeot maker pools underlying vehicle architectures and engines with GM's European business, eliminating duplicate technologies, the sources said on Wednesday.

Exane BNP Paribas analyst Dominic O'Brien said savings of 2 billion euros could be achieved with 1.2 billion euros from joint purchasing, 400 million from r&d and another 400 million from the eventual elimination of 6,000 jobs.

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#2 ·
In simplistic terms - PSA would eliminate Opel/Vauxhall's R&D costs altogether as all future models would use PSA platforms, powertrains, etc - spreading PSA R&D over 50% more vehicles.

They'll need big balls to close Russelsheim completely - the R&D won't be needed and it's the GM factory that should have closed before others.
 
#3 ·
Pretty much what most have been saying over the past few days.

If PSA can get this deal through, I'm sure that Opel Vauxhall wll do much better ub=nder PSA's control.
Also, the percepton that those brands are now back under European control won't hurt in parochial Europe.
 
#19 ·
At least GM is selling one of their subsidiaries rather than starve them of funds, stifle model development, run them into the ground, creative accounting debt and losses, and then close them down after saying that its buyers fault because they didnt buy their cars! ;)
 
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#25 · (Edited)
Well said.


Ain't no doubt over here ..... the 'unknowns'........ are the far bigger thing currently, whatever that really means.

--

Related.... ok, so now........... let's go plug in an eventual 2.1 B Dollar Savings .........
 
#31 · (Edited)
Nanjing Automotive owns Rover MG... has done since 2005.

MG Rover
Acquisition of MG Rover Group assets

Nanjing Auto acquired some assets of MG Rover Group and Powertrain Ltd in 2005 after the group had entered administration. According to the purchase agreement, Nanjing Auto bought MG, Austin, and some other dormant British car brands, and the production technology and equipment for the MG ZT and MG TF models. Some equipment and blueprints were repossessed by Honda, as its intellectual property is used in some of MG Rover vehicles, in particular, the Rover 45 and MG ZS, which were based on the Honda
The internet says so it must be right..:p

J/LR might have retained enough IP to retain the Rover name, if so great...
Fingers crossed but i have a feeling that it's not that easy...

I'm thinking that Rover was split off from Land Rover, went to Austin Rover, then MG Rover
and then got spun off to the chinese separately to Land Rover which went to BMW and then Ford..
 
#32 ·
Nanjing Automotive owns Rover MG... has done since 2005.



The internet says so it must be right..:p

J/LR might have retained enough IP to retain the Rover name, if so great...
Fingers crossed but i have a feeling that it's not that easy...

I'm thinking that Rover was split off from Land Rover, went to Austin Rover, then MG Rover
and then got spun off to the chinese separately to Land Rover which went to BMW and then Ford..
It was a very involved arrangement - Land Rover went to Ford (without the Rover brand) - Phoenix bought Rover (but licenced the Rover brand from BMW) but then collapsed and various Chinese oufits bought the remnants, and some subequently combined in China. As I posted above, Ford bought the Rover brand from BMW to reunite it with Land Rover and Range Rover.
 
#48 ·
#36 ·
So will all the small car platforms that Opel did for gm, like delta and gamma, now be done by gm Korea??

I havent read all the stories going round about this sale, is gm goin to be taking a stake in PSA still?

Any chance all 3, PSA, Opel and GM will share a newly designed small and light car platform togethor after this? Could really save them all some money combining cars of those sizes.
 
#37 ·
GM Korea took responsibility for the then redundant Gamma platform (Opel had switched to FIAT SCCS), updated it and used it on models built there. Renamed derivatives of Delta and Epsilon platforms are used by an increasing number of US-built models so it makes sense to transfer full responsibility somewhere in the US.

IMO - the deal is progressing it would seem in the media here - but any glitches behind the scenes wouldn't be apparent.

PSA has a full range of platforms and powertrains mirroring those used by Opel/Vauxhall and it would make sense to move any Opel/Vauxhall models retained to PSA platforms when each model is replaced.
 
#43 ·
#44 ·
AZ alleges a purchase price has been agreed upon, but licencing fees still remain unsettled in light of PSA’s particular interest in the Opel Mokka and Amperea-e, the euro Bolt. Similar complications arise when looking at the production offset required in Rüsselsheim for the Insignia based Buick Regal and Holden Commodore; rendering the purchase price a mere symbol of the transaction, with the deal’s real value buried in the minutiae.
IF true then it sounds like a SWAP deal may be in the "works" where GM offers the MOKKA and the BOLT in trade for the REGAL/Commie
IMHO it sounds to me like GM and PSA will "stay close" AFTER the deal is done
 
#49 ·
We don't know how much the joint sales/production Peugeot 108 / Citroen C1 / Toyota Aygo would benefit from elimination of competition by the GM Korea built Opel Karl / Vauxhall Viva - but I'm sure PSA do.

Based on pricing for Norway, the Opel Ampera-e (Chevrolet Bolt) looks like being twice the price of the Peugeot iOn / Citroen C-Zero / Mitsubishi i-MiEV so PSA may not want it.
 
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