- PSA Group has confirmed reviewing with General Motors a number of strategic initiatives to improve its profitability and operational efficiency, including a potential acquisition of Opel / Vauxhall. The objective of the present analysis is to study the relative positioning of the two groups;

- Financially, GM loses money with its European subsidiaries for 16 years. PSA returned to profits in 2015, after suffering three years of losses.

- What would PSA gain by acquiring Opel? The growth of PSA is not satisfactory. Its sales in Europe stagnate, decline in China, Russia and South America. The Iranian market remains fragile and a return to the USA seems unlikely. Within this context, an external acquisition could be an interesting option for PSA group to grow. And the acquisition of the European subsidiaries of GM may appear as a good opportunity.

- PSA sold 3.15 million vehicles worldwide in 2016 and Opel / Vauxhall 1.18 million. The acquisition of Opel by PSA would enable it to sell more than 4.3 million vehicles a year in the world, including more than 3 million in Europe. The PSA group has a strong strategy of cost reduction. And costs could be reduced by economies of scale providing that the Opel range is gradually adopting PSA platforms and engines, as is already the case for the new Opel Crossland X. The rationalization of the industrial tool could enable to close several factories in order to saturate the capacity of the other factories. The most threatened factories would be Ellesmere Port, Luton, Rennes or Rüsselsheim.

 
   

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