Peugeot expects more Opel losses this year

Peugeot expects more Opel losses this year
By Euronews
Share this articleComments
Share this articleClose Button

PSA Group Chief Executive Carlos Tavares says he expects Opel-Vauxhall to lose more money in 2017 as it buys the business from General Motors.

We must recognise that the losses are real and probably will be again in 2017

Carlos Tavares Chief executive, PSA Group

The head of French carmaker PSA Peugeot Citroen has said he expects Opel to continue losing money this year.

PSA is buying German based Opel, and the British part of the business Vauxhall, from General Motors.

Chief Executive Carlos Tavares told shareholders at PSA’s annual general meeting in Paris: “A certain number of good achievements have been made under General Motors’ leadership, but we must recognise that the losses are real and probably will be again in 2017.”

Tavares, who is betting that bigger will be better, repeated his pledge that the Opel-Vauxhall purchase will create a new “European automotive champion” second only to Volkswagen.

PSA agreed in March to acquire Opel in a deal valuing the loss-making GM European arm at 2.2 billion euros.

At the meeting, PSA shareholders voted overwhelmingly to approve the issue of share warrants forming part of the payment to GM for Opel-Vauxhall.

Valued at 670 million euros when the deal was struck, the warrants convert to shares in the French carmaker in five years at the earliest, maintaining a financial incentive for GM’s continued cooperation with a PSA-owned Opel-Vauxhall.

Share this articleComments

You might also like

German economy minister seeks Opel jobs pledge from Peugeot Citroen

Peugeot 3008 wins European Car of the Year

PSA Opel-Vauxhall deal to transform European car market