PSA stabilizes Opel, but much work remains
March 18, 2018
GENEVA — "No regrets."
That's PSA Group CEO Carlos Tavares' assessment one year after striking a $2.7 billion deal for Opel and Vauxhall, General Motors' stubbornly unprofitable European brands.
Tavares says PSA has begun to stanch the flow of red ink at Opel after nearly two decades of losses under GM and pave the way for sustainable profits. He has cut costs by negotiating concessions with European unions and sharing purchasing and other expenditures. There have not been large-scale layoffs or factory closings, as many had feared.
By design or necessity, PSA is moving swiftly to transfer its technology to Opel vehicles, a move that Tavares said is accelerating synergies.
"We know we can turn around this company, and we are now seeing the first concrete results," he said this month.
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