Holden not hurt by Opel/Vauxhall PSA purchase

PSA Group bought GM's European brands for 2.2 billion euros ($3.1 billion), which Holden said will not affect its future lineup.

The PSA group - the parent company of Peugeot, DS and Citroen - reached an agreement with General Motors to buy the European brands Opel and Vauxhall in the fourth quarter of this year for 1.3 billion euros ($1.8 billion) and 0.9 billion ($1.3 billion), respectively.

This merger will see PSA become the second largest automotive company in Europe with a market share of 17%, just behind the Volkswagen Group.

Consequences Down Under likely as Australian brand GM Holden buys many models from Opel, especially since it has become a regular importer since October, when local production of the Commodore ceases.

Holden and Opel have maintained close ties over the years and have delivered great cars to Australian customers. The good news is that these grocery programs are not affected in any way.

However, a Red Lion spokesperson confirmed that the current product line will not change.

"Holden and Opel have maintained close ties over the years and have delivered fantastic vehicles to Australian customers, including the current all-new Astra and next-generation Commodore due in 2018," Holden said in a statement. "The good news is that these grocery programs are not affected in any way."

For the foreseeable future, Holden will continue its plans to gradually source some of its new models from Europe through the now French-owned brand.

“We will continue to work closely with Opel and GM to deliver on our vehicle vision with quality and precision. This includes future new right-hand drive SUVs such as the Equinox and Acadia, which have been designed specifically for right-hand drive markets,” the local company said. 

Despite parting ways with Opel and Vauxhall, foreign reports continue to assert that GM will continue to participate in the European luxury market with its Cadillac and Chevrolet brands.

PSA Chairman Carlos Tavares said the acquisition of GM's European brands will create a solid foundation for his French company's continued growth locally and internationally.

“We are proud to join forces with Opel/Vauxhall and are determined to continue to grow this great company and accelerate its recovery,” he said.

“We applaud all that has been made by her talented teams, the beautiful Opel and Vauxhall brands and the company's exceptional heritage. We intend to manage PSA and Opel/Vauxhall, benefiting from their brands.

“We have already jointly developed excellent models for the European market and we are confident that Opel/Vauxhall is the right partner. For us, this is a natural extension of our partnership and we look forward to taking it to the next level.”

General Motors President and CEO Mary Barra commented on Mr. Tavares' view of the sale.

“We are delighted that together, we at GM, our colleagues at Opel/Vauxhall and PSA, have a new opportunity to improve the long-term performance of our companies, building on the success of our alliance,” she said.

“For GM, this is another important step in our ongoing plan to increase our productivity and accelerate our pace. We are transforming our company and achieving record and sustainable results for our shareholders through the disciplined allocation of our resources towards the most profitable investments in our heart of the automotive business and in new technologies that enable us to shape the future of personal mobility.”

Ms. Barra also said that the changeover will not affect the two companies' existing joint projects, nor any potential future product designs.

“We are confident that this new chapter will further strengthen Opel and Vauxhall in the long term and we look forward to contributing to PSA's future success and value creation potential through our shared economic interests and continued collaboration on existing projects as well as other exciting projects. . upcoming projects,” she said. 

A new partnership between the PSA Group and international banking group BNP Paribas will be responsible for managing GM's financial operations in Europe, with each company holding a 50 percent stake.

PSA expects the new deals will allow it to increase its purchasing, production and research and development, with the conglomerate projecting a "synergy effect" of 1.7 billion euros (2.4 billion US dollars) by 2026, but most of this amount will be achieved by 2020 year.

According to PSA Group, Opel/Vauxhall's operating margin will increase to 2020% by 2.0 and eventually reach 6.0% by 2026. 

Do you really believe in Holden after the PSA? Tell us what you think in the comments below.