Opel to electrify all model lines by 2024, speeding PSA transition

Opel to electrify all model lines by 2024, speeding PSA transition

Opel to electrify all model lines by 2024, speeding PSA transition

Exactly 100 days after the closing of the deal, whereby PSA took control of Opel (and British sister brand Vauxhall) from General Motors, the German auto maker's chief executive officer, Michael Lohscheller, has outlined how profitability can be returned to the company.

"We quickly came to the conclusion that Opel was not ready to reach the Carbon dioxide targets set by the European Union for 2020-2021", Opel boss Michael Lohscheller told reporters and analysts at the brand's headquarters in Ruesselsheim, near Frankfurt.

PSA Group said all new Opel vehicles, and those that would wear a Vauxhall badge in Britain, would be engineered in Russelsheim, "which will be transformed into a global competence centre for the whole Groupe PSA".

Opel has published its first strategic plan since leaving General Motors to join the Peugeot group.

With PSA platforms and engines, Opel is now is a position to benefit from PSA's global production.

He also said the company was too vague in its announcement that it plans to enter more than 20 new export markets by 2022. Opel has confirmed its keen interest in joining the fray in Brazil and China. Four electrified models, in both pure electric and hybrid guises, will debut by 2020.

Opel executives did not mention whether the automaker will seek to sell cars in the U.S. But "nothing more stands in the way" of a possible U.S. market entry once Opel has shifted its product lineup to PSA platforms from GM architectures, said Opel's labor leader Wolfgang Schaefer-Klug, Opel's labor leader, who is an Opel board member. Regarding Vauxhall's future, the statement still includes the British brand.

What do you see in the Opel logo? There's also talk of a new SUV model in 2019, and a large vehicle at an unspecified time in the future. PSA Group, the French owner of brands Peugeot and Citroen as well as Opel, is building the Commodore for Australia, although it is tweaked to suit local conditions. This "cross-manufacturing" will no doubt help improve utilisation of the division's historically underused plants.

With Opel having lost around US$10 billion ($13 billion) and shed 30,000 jobs over the last 15 years, stemming the tide of red ink is one of management's more immediate tasks. All-in-all Opel hopes to reduce the cost of producing each vehicle by 700 euros ($1060) by 2020, and cut its break-even point to 800,000 cars by 2026. "Opel and Vauxhall need to change".

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