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    GM's Sale of Opel/Vauxhall To PSA Group Is Finished

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      And that's a wrap


    General Motors and PSA Group completed the sale of Opel/Vauxhall yesterday, effectively ending the era of GM’s European division.

     “It is a historic day. We are proud to join Groupe PSA and are now opening a new chapter in our history after 88 years with General Motors. We will continue our path of making technology `made in Germany´ available to everyone. The combination of our strengths will enable us to turn Opel and Vauxhall into a profitable and self-funded business. We have set ourselves the clear target of returning to profitability by 2020,” said Opel Automobile GmbH CEO Michael Lohscheller. 

    As part of the sale, PSA Group paid 1.53 billion for the Opel and Vauxhall brands and $1.06 billion for the European arm of GM Financial. GM is still on the hook for existing pension obligations for Opel - estimated to be around $3.54 billion.

    The final part of the sale also marks some key changes of Opel and Vauxhall's leadership. Four new people -  Christian Müller, Rémi Girardon, Philippe de Rovira, and Michelle Wen - will be joining the company's management.

    What happens next? The new management team will begin working on a new plan for the future of the two brands. The ultimate goal is to have Opel and Vauxhall return to profitability by 2020.

    Source: Reuters, Opel
    Press Release is on Page 2


    Birth of a European Champion: Opel and Vauxhall join Groupe PSA

    • Opel and Vauxhall to be operated as true iconic German and British brands
    • New performance plan to be presented in 100 days: to generate a positive operational free cash flow by 2020 as well as an operating margin of 2% by 2020 and 6% by 2026
    • Four new team members to join the leadership team

    Rüsselsheim.  The sale of Opel Automobile GmbH with its brands Opel and Vauxhall by General Motors to Groupe PSA has been finalized now. “It is a historic day,” said Opel Automobile GmbH CEO Michael Lohscheller. “We are proud to join Groupe PSA and are now opening a new chapter in our history after 88 years with General Motors. We will continue our path of making technology `made in Germany´ available to everyone. The combination of our strengths will enable us to turn Opel and Vauxhall into a profitable and self-funded business. We have set ourselves the clear target of returning to profitability by 2020.”

    “We are witnessing the birth of a true European champion today,” emphasized PSA Chairman of the board Carlos Tavares. “We will assist Opel and Vauxhall’s return to profitability and aim to set new industry benchmarks together. We will unleash the power of these iconic brands and the huge potential of its existing talents. Opel will remain German, Vauxhall will remain British. They are the perfect fit to our existing portfolio of French brands Peugeot, Citroën and DS Automobiles.” The market share of the enlarged Groupe PSA is now around 17 percent in Europe, making it the continent’s second largest carmaker with first or second place in main markets.

    As already assured when the contract was signed in March, all employee codetermination rights will remain unchanged.

    The Opel/Vauxhall management team will work on a plan for the future in the next 100 days. “We are eager to build the plan with PSA’s support and obviously together with our partners from the Works Council and the unions,” said Opel CEO Lohscheller. Synergies within the Groupe PSA, for example in purchasing and development, are set to play a major part. The combined entity will unlock substantial economies of scale and synergies in purchasing, manufacturing and R&D estimated at €1.7 Bn at run rate. The goal is to generate a positive operational free cash flow by 2020 as well as an operating margin of two percent by 2020 and six percent by 2026.

    Today’s start of a new era is accompanied by some important leadership changes. “I am happy to announce that four new members will join my management team,” said CEO Lohscheller:

    • Christian Müller, previously Vice President Global Propulsion Systems – Europe and with Opel since 1996, will succeed William F. Bertagni as Vice President Engineering. He will integrate engineering and powertrain in one department.
    • Rémi Girardon, previously Senior Vice President Group Industrial Strategy at Groupe PSA, will succeed Philip R. Kienle as Vice President Manufacturing.
    • Philippe de Rovira, previously Group Controller at Groupe PSA, will become the new CFO of Opel, following Michael Lohscheller.
    • Michelle Wen, Group Supply Chain Management Network Director at Vodafone Procurement, will be joining the Opel leadership team effective September 1 replacing Katherine Worthen currently Vice President Purchasing and Supply Chain. All other moves are with immediate effect.

    “We thank Katherine Worthen, William F. Bertagni and Philip Kienle for all their contributions to Opel/Vauxhall and wish them all the best for the next chapter of their careers within General Motors,” said Opel CEO Lohscheller. “And we cordially welcome Michelle Wen from Vodafone as well as Remi Girardon and Philippe de Rovira from Groupe PSA. I am looking forward to working with these new team members who will reinforce the potential of our leadership team.”

    Going forward, Michael Lohscheller is planning with a much leaner management structure, including the number of direct reports. “We are reducing complexity and increasing speed,” said Lohscheller. “I am looking forward to shaping the next chapter of Opel/Vauxhall with the new management team and leading our company into a successful future. The owners and the employees will not be the only ones to benefit from ever stronger Opel and Vauxhall brands – our customers will do so too.”

    PSA and Opel/Vauxhall have been working together since 2012. The cooperation so far includes four vehicles from Opel. The first model, the Opel Crossland X, has been available at dealerships since the end of June. The Opel Grandland X SUV in the next higher segment follows in the fall. The successor of the Opel Combo light commercial vehicle will come onto the market next year and as of 2019 the next generation of the best-selling Opel Corsa will be launched.

    Opel/Vauxhall and Groupe PSA will continue to work with General Motors in the future. In addition to development in the area of electric propulsion, Opel plants will continue to produce vehicles for the GM brands Buick and Holden.

    In parallel, the acquisition of GM Financial's European operations is under way, subject to validation by the different regulatory authorities’ review and is scheduled for the second half of 2017.

    Edited by William Maley

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    Opel pensions aside, happy days are finally here. 8)

    Good luck to PSA when the European auto market really falls down, unlike a decade ago.

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    40 minutes ago, riviera74 said:

    Opel pensions aside, happy days are finally here. 8)

    Good luck to PSA when the European auto market really falls down, unlike a decade ago.

    So True, they are in a depression now with a huge glut of production. I see things falling apart over the next 10 years.

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    21 minutes ago, dfelt said:

    So True, they are in a depression now with a huge glut of production. I see things falling apart over the next 10 years.

    Agree completely.

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    This gives PSA production capacity to expand into markets they don't currently sell in, and without the pension obligation, returning to profitability shouldn't be hard. 

    Two more things: This potentially gives them the ability to return one brand to the US (Citroen please) but it could be Opel too.

    Second, Opel will continue to build at least 3 vehicles that are US federalized for at least the next few years. While it's unlikely that they get to keep the platforms, it means all the logistics are in place for a new platform to get Federalized in a couple years and brought over here. The next gen Opel Mokka, rebadged into a Citroen DS something would make a great first entry to the US. 

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    11 hours ago, Drew Dowdell said:

    This gives PSA production capacity to expand into markets they don't currently sell in, and without the pension obligation, returning to profitability shouldn't be hard. 

    Two more things: This potentially gives them the ability to return one brand to the US (Citroen please) but it could be Opel too.

    Second, Opel will continue to build at least 3 vehicles that are US federalized for at least the next few years. While it's unlikely that they get to keep the platforms, it means all the logistics are in place for a new platform to get Federalized in a couple years and brought over here. The next gen Opel Mokka, rebadged into a Citroen DS something would make a great first entry to the US. 

    While that is possible, the US car market is more than a little saturated and PSA may not have a vehicle that will draw sales away from existing competitors.

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    On 8/6/2017 at 0:11 AM, riviera74 said:

    While that is possible, the US car market is more than a little saturated and PSA may not have a vehicle that will draw sales away from existing competitors.

    Success is another story, doesn't mean they won't try. 

    The Citroen DS crossovers would do well herecitroen-ds7-crossback-102.jpg

    920x520_2_GIF.gif

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      H/T to @balthazar for alerting us to this story
    • By Drew Dowdell
      QUARTER 4 (CALENDAR YEAR-TO-DATE) JANUARY - DECEMBER   2019 2018 %Change Volume   2019 2018 %Change Volume   Cascada 77 743 -89.6   2,535 4,136 -38.7   Enclave 10,143 14,420 -29.7   51,156 49,647 3.0   Encore 28,497 23,326 22.2   102,402 93,073 10.0   Envision 8,380 7,535 11.2   33,229 30,152 10.2   LaCrosse 463 2,118 -78.1   7,241 15,527 -53.4   Regal 1,514 3,110 -51.3   10,363 14,118 -26.6   Buick Total 49,074 51,257 -4.3   206,929 206,863 0.0   ATS 83 831 -90.0   1,134 10,859 -89.6   CT5 43 0 ***.*   43 0 ***.*   CT6 2,276 2,398 -5.1   7,951 9,668 -17.8   CTS 966 2,442 -60.4   6,965 11,219 -37.9   Escalade 8,889 9,573 -7.1   35,424 36,872 -3.9   XT4 8,895 7,573 17.5   31,987 7,785 310.9   XT5 11,168 13,582 -17.8   49,879 60,565 -17.6   XT6 7,169 0 ***.*   11,559 0 ***.*   XTS 1,062 5,063 -79.0   11,304 17,727 -36.2   Cadillac Total 40,551 41,462 -2.2   156,246 154,702 1.0   Blazer 23,008 27 ***.*   58,115 27 ***.*   Bolt EV 3,307 6,212 -46.8   16,418 18,019 -8.9   Camaro 11,474 11,135 3.0   48,265 50,963 -5.3   Colorado 25,484 30,004 -15.1   122,304 134,842 -9.3   Corvette 3,491 3,910 -10.7   17,988 18,791 -4.3   Cruze 2,699 32,955 -91.8   47,975 142,617 -66.4   Equinox 92,092 98,239 -6.3   346,048 332,618 4.0   Express 16,652 22,543 -26.1   77,457 81,239 -4.7   Impala 9,545 12,604 -24.3   44,978 56,556 -20.5   LCF 1,273 940 35.4   4,495 2,810 60.0   Malibu 34,314 37,084 -7.5   131,917 144,542 -8.7   Silverado HD 36,704 34,222 7.3   131,953 142,632 -7.5   Silverado LD 124,619 126,950 -1.8   438,686 442,943 -1.0   Silverado MD 2,018 6 ***.*   4,961 6 ***.*   Sonic 3,339 2,765 20.8   13,971 20,613 -32.2   Spark 11,016 5,174 112.9   31,281 23,602 32.5   Suburban 10,242 15,200 -32.6   51,928 60,633 -14.4   Tahoe 21,086 24,679 -14.6   101,189 104,153 -2.8   Traverse 33,631 39,536 -14.9   147,122 146,534 0.4   Trax 33,039 22,378 47.6   116,816 89,916 29.9   Volt 370 5,063 -92.7   4,910 18,306 -73.2   Chevrolet Total 499,404 531,985 -6.1   1,958,925 2,036,023 -3.8   Acadia 19,471 25,128 -22.5   99,429 88,621 12.2   Canyon 6,525 8,219 -20.6   32,825 33,492 -2.0   Savana 3,136 2,905 8.0   24,226 19,684 23.1   Sierra HD 18,228 16,550 10.1   59,871 60,389 -0.9   Sierra LD 50,494 50,762 -0.5   172,452 159,165 8.3   Terrain 28,060 31,595 -11.2   101,470 114,314 -11.2   Yukon 20,966 25,366 -17.3   74,673 80,784 -7.6   GMC Total 146,880 160,525 -8.5   564,946 556,449 1.5   GM Vehicle Total* 735,909 785,229 -6.3   2,887,046 2,954,037 -2.3                     78 selling days for the QUARTER 4 this year and 77 for same QUARTER last year.  
  • Posts

    • SEXY (it's Carrie) 😜
    • WRONG. Shell does NOT pump the same fuel from the same trucks into their tanks that Costco does. I've seen the SHELL branded truck at my Shell station when I drive by that definitely isn't going to Costco before or after, because I've seen the generic marked tanker at or even a Costco marked tanker at Costco so they buy whatever they can find. Shell and Chevron blend their high-end Top Tier fuel with their detergents at the refineries not willy-nilly at the pumps like Costco, so that's BS comment. Here in Arizona we have fuel points at my local Fry's Marketplace where I shop (owned by Kroger just like Fred Meyer in the NW). The interesting little tidbit for you is we get .10- .20 off per gal at any SHELL station around as well as a dollar off at Fry's stations. Fry's fuel I would never pump even with that much off per gallon as it will cost you more in the end in fuel system and/or other engine repair. So, the grocery store chains like Kroger or Albertson's/Safeway have the gas station in place to attract shoppers as well.  AGAIN, the GM dealerships want you to have a Costco Membership and I know they mention that they have the Auto Program that gives $1,000 Member Only Incentive on a new purchase like... https://www.costcoauto.com/save/Brand.aspx?utm_content=chevy01&makeid=7&cmpc=1 because I used it when I bought my new 2018 Silverado in 2018. So the dealerships have their own incentive to push you to Costco pumps, no other reason for it. Why the F would they care where you pump your gas if they didn't have an incentive of their own to get you there, it's not the gas that's for sure. You go right ahead and burn that gas that by the way isn't purchased as Top Tier like you stated. ALL the petroleum companies or in this case big box store merchandiser make it Top Tier with THEIR OWN blend and some ARE higher quality than others and well as the fuel. Thanks for your time with this matter, it's been fun. 😜
    • Kerrie Underwood
    • Costco gas stations at least here in Washington are open 5am to 9pm 7 days a week. I see long lines usually in the afternoon and early evening. Rarely in the mornings or late night. It is interesting to see the same company trucks come and fill up the costco stations and then go across the street to the Shell and fill up their tanks. As @USA-1 posted link, it is true that not all gas is created equal and you do have farm grade cheap ass gas. Yet with the standards today and the fact that cheaper farm grade gas is also sold at local pumps and clearly marked, not all auto's can handle the cheaper gas especially those blended with ethanol. Costco has their certifications posted at the pumps and online as their detergent gas comes from the same distribution centers and is certified Top Tier and like @ykX stated, I have auto's with 200,000 miles on them running still just fine on Costco gas too. Why the long response to you, is that you HIT THE NAIL on the Head and Costco is on record that the gas is an additional benefit they offer to help their members do one stop shopping, just like tires. It is not about maximizing a profit on every sale but about offering value to the members who then also go in and spend on average $150 per trip into a costco to get stuff. The Business model is about generating profits on large about of turn over at an average of 5% mark up. Yes there are some products brought in that clearly have a much larger mark up, but Costco business model on how they built the business has always been on the average small markup on sales of thousands of units rather than a large markup on a few sales. Costco gas is the same thing, they buy Bulk Top Tier Gas to offer at a small markup to their members as the general public cannot buy gas there. A benefit to membership, unlike a shell, Exxon or Mobil where the franchise owner has a large % markup so that they can make a small profit after they pay all the fees to the oil company. Two different business models, some get suckered into paying crazy high gas prices for the same grade of gas versus others who see the value and benefit from having less outlay in cost. FYI @USA-1 The recommendation from my Cadillac dealership is not the only GM dealership as both the east side Bellevue Chevrolet/Cadillac Dealership where I bought my SS and the Everett Chevrolet Dealership as well as the Everett Buick dealership where my sister bought her Buick all recommend Costco as it is a CERTIFIED TOP TIER GAS SUPPLIER. End of explaining this, I wish you the best paying out much higher gas prices to your local Shell or which ever name gas station you use. Happy your happy with your auto performance on their over priced gas. Like you said you get what you pay for and in your mind you have a superior product. Interesting that my custom tuned SS runs so awesome on Costco Premium gas as it always has required and I am at 140,000 miles on my SS and it runs better now than it did the day I bought it new from the dealership. Seems Costco gas is a quality less expensive product for me.
    • I'm pretty sure Costco sells gas to attempt to drive traffic to their store, not to make much of a profit on it. I've just grown tired of the lineups so I rarely fill up there unless I know it is a quiet time, around 9am on a weekday.    
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