Chief Executive of Groupe PSA, Carlos Tavares of the French company behind Peugeot and Citroen has vowed to turn Opel and Vauxhall around without factory closures or job cuts, after agreeing to buy General Motors’ lossmaking European arm for estimated €2.19bn.The acquisition of Opel/Vauxhall, which generated revenues of €17.7bn previous year 2016, will transform PSA Group into the second-biggest carmaker in Europe, after Volkswagen. Groupe PSA’s chief executive, Carlos Tavares, give the statement of creating a “European champion”. He pointed to the French company’s track record and said employees at Vauxhall in the UK and Opel in Germany would be given a chance to reach the necessary “benchmark” of efficiency.
Peugeot-Citroen Chief Vows to Save Jobs in Vauxhall
GM and PSA also said and confirm about the deal would create annual savings of €1.7bn in purchasing, manufacturing, and research and development by 2026, with most savings likely to be achieved by 2020 from purchasing. Tavares said the estimate did not include any job cuts. He also told a media conference in Paris: “We do not need to shut down plants. We believe we need to trust the talents of people. They always come up with ideas and solutions we could not think, Shutting down plants is rather simplistic.”