The manufacturer of Peugeot car brand has paid €2.2billion ($2.3 million) to buy over Opel from General Motors (GM).
|Image credit: Motori Online.|
This is coming eight years after Opel failed to sell off the brand to to Magna International (MG.TO).
However faced with making profit rather than chase global sales, Opel investors pressured the sales of the brand to PSA.
According to Bangkok post,the maker of Peugeot and Citroen cars vowed to return Opel and its British Vauxhall brand to profit, with an operating margin of 2% within three years and 6% by 2026 underpinned by €1.7-billion joint cost savings.
General Motors will receive 1.32 billion Euros for the Opel manufacturing business, 650 million Euros in cash and 670 million in PSA share warrants.
The acquiring of Opel from general motors have placed PSA as the regional car giant to challenge Volkswagen as the leading car brand in market.
The chief executive of PSA Carlos Tavares, said PSA intends to make the British Vauxhall brand more profitable with a profit margin of 2% in three years time and 6% by 2026.
The company further underpinned €1.7 billion as joint cost savings.