The American corporation General Motors and the French concern PSA have announced that the deal for the sale of Opel has been approved. This became known on the eve of the opening of the Geneva Motor Show, so in the coming days we will learn more and more details of this transaction. So far, PSA chief Carlos Tavares (pictured left) and GM head Mary Barra (right) have announced that both the Opel brand and its subsidiary Vauxhall, along with GM's European financial structures, will become part of the French concern.
The value of the transaction amounted to 2.2 billion euros: 1.3 billion euros for the automotive business and 0.9 billion for the financial one. However, PSA will pay only 1.8 billion of them, as the financial division of GM is acquired in half with the bank BNP Paribas. In addition, GM can earn more if Opel develops successfully: under the terms of the deal, the Americans received an option for 650 million euros, according to which in the next nine years they can buy up to 4.7% of PSA shares at the current price (17.34 euros), but they will be obliged to immediately sell this package at real quotes.
In 2016, Opel and Vauxhall occupied 5.7% of the European market with 1.2 million vehicles sold and revenues of 17.7 billion euros. Since 2013, the company has been led by the former head of the Chinese division of the Volkswagen brand, Karl-Thomas Nomainn, and according to the plan of his team, Opel was supposed to break even last year. However, the calculation did not work and for the seventeenth time in a row the year ended with losses: the loss amounted to 0.3 billion euros. The reasons were given as Brexit (that is, the negative impact of the UK's decision to leave the EU), the unfavorable exchange rate of the British pound against the dollar and the high costs of launching new models.
The portfolio of PSA will be two more brands
After the addition of Opel, the PSA group will occupy about 17% of the European market, which will make the concern the number two automaker in the region: only Volkswagen is larger. For GM, this is another step to reduce costs: before that, plants in the Portuguese Azambuzh, Belgian Antwerp, German Bochum were closed, last year they curtailed the production of motors in Australia, and this fall they also curtailed the assembly of cars.
Opel has been part of the General Motors empire since 1929 - and now, 88 years later, it is leaving it. PSA management expects to bring the profitability of operating activities to 2% by 2020, and to increase it to 6% by 2026. As part of the deal, the Opel and Vauxhall brands, six assembly and five aggregate plants, an engineering center in Rüsselheim and 40,000 employees will be transferred to PSA. The engineering center in Turin will remain with GM.
Immediately after the deal was announced, Karl-Thomas Nohminn promised that "Opel will remain a German brand and Vauxhall an English one." This probably means that there are no plans to close factories in the UK and Germany. This assumption is confirmed by the head of the PSA, Carlos Tavares, who said: “There is no need to close the factories. Over the past few years, we have improved their efficiency, while since I took office, we have not closed any of the plants.”
Opel and Vauxhall will continue to use GM's intellectual property and technology until existing models are replaced by new ones developed on PSA platforms. By the way, within the framework of previously concluded agreements, Opel has already developed two models on French platforms - a small crossover based on the Peugeot 2008 and Grandland X based on the 3008 model. uses the GM platform. It is assumed that Opel will continue to supply cars to GM for sale in the Australian market, under the Holden brand, and in the US, under the Buick brand.
PSA Groupe is a French automotive company, the second largest car manufacturer in Europe. The company owns the following brands: Citroën, Peugeot, DS Automobiles, Opel and Vauxhall. In Russia, the group is also represented by the captive bank PSA Bank and the captive leasing company PSA Finance.
business task
All companies representing the PSA group in Russia have moved to a new common office. This move allowed companies to allocate more resources to the development of current projects and the preparation of the launch of new products.
The corporate culture of the company and commitment to the brand provides for a high involvement of employees in work processes, which is reflected in a democratic approach to the arrangement of office space. A variety of multi-format meeting rooms, bright open space and laconic design of offices should contribute to high concentration and comfortable work of employees.
Space organization
Office premises with a total area of 2,200 sq. m are located on the seventh floor of the business center Delta Plaza in the 2nd Syromyatnichesky Lane.
Two separate offices were set up here, one of which was occupied by Peugeot Citroen RUS and the other by Bank PSA Finance RUS.
Each office has its own reception area, coffee point, workplaces in open space and offices.
Zoning is provided by cabinets and shelving for documents. In the call center area, employees are located in cubicles, which not only visually separate workplaces, but also provide a high level of sound insulation. MeetYou special acoustic partitions effectively reduce noise levels and help create a comfortable working environment for employees. The system is designed as a constructor, and if necessary, can easily change the configuration.
Meeting rooms are equipped with Planes modular transformable tables, which are easy to move, connect with other models, organizing a variety of configurations. All tables are equipped with progressive cable management, which makes it possible to connect all the required equipment for team work.
A feature of the project was the use of a modern solution in the field of sound propagation limitation. Around the perimeter of the office of the General Director of Peugeot Citroen Russia, emitters for the Quiet Technology noise curtain system are installed, which protect the confidentiality of negotiations.
The low ceiling height (only 3.2 m) required careful design and special attention to the adaptation of utilities to the needs of the two companies.
Design idea
The design of the office premises was based on the idea of creating a respectable office for an automotive company. The design solutions of the workspace are quite concise and primarily aimed at convenient communication between employees of different departments and positions.
Due to the predominance of open working space, light finishes, white office furniture, as well as glass partitions, a high level of natural light is achieved in the office.
Landscaping has become an important element of office design. Particular attention was paid not only to the arrangement of workplaces and open space, but also to the reception, coffee points and meeting rooms.
The use of different types of plants helped to zone the space - to separate work areas from aisles and create a private atmosphere. An additional advantage of landscaping space is noise suppression.
Best Office Awards 2018 nominee project!
The automobile concern PSA Group acquired the German Opel from one of the oldest automakers in Europe for 2.2 billion euros. The concern did not bring worthwhile income to the Americans, plunging the German company into a gradual regression, will the French be able to revive the former glory of Opel? They are full of hope for a happy ending.
Today, one of the most important transactions of the decade officially took place - the acquisition of the PSA Group, which includes brands such as and, companies with all side branches of the business involved in financial operations in the Old World (GM Financial). According to experts, the merger will bring PSA to the second position in Europe in terms of volume, coming even closer to the Group's market share and overtaking compatriot car manufacturer Renault.
According to official data published in the press, the market share of the PSA Group in Europe will now be about 17% in the near future, in the VW group it is 24%.
The total cost of the purchase - 1.3 billion euros was paid for the acquisition of the enterprise itself and almost 1 billion (900 million euros) cost the French and their partner in the transaction, BNP Paribas, the purchase of financial assets.
Representatives of the two companies involved in the transaction officially exchanged courtesies and expressed hope for an improvement in the financial condition in the future, on the one hand, and productive development, on the other.
PSA Chairman Carlos Tavares said the deal is a matter of pride and that the combined effort with Opel/Vauxhall will help the great company continue to grow and accelerate its recovery.
At the same time, Mary Barra, head of the American concern GM breathed a sigh of relief: “For GM, this transaction is another important step towards improving our financial performance. We are reorganizing our company and getting stable, record-breaking results.” she said.
Perhaps this deal will change the balance of power and where Opel can return. True, the question remains open, does the Russian consumer need it? Now one of the few German brands with truly budget prices is not able to offer affordable cars, and the model line is inexcusably meager. Therefore, most likely Opel cars for the coming years will remain in the dreams of domestic motorists.
Divisions amounted to EUR 30,378 million, down 1.1% compared to the first half of 2018. The positive effect of the expansion of the model range (+2.9%) and price increase (+1.3%) partially offset the decrease in sales to partners (-2.2%), the negative impact of changes in foreign exchange rates (-0.8%), decrease in sales volumes and reduction of a model range in the countries (-1.4%) and other negative factors (-0.9%), reported on July 24, 2019 in the PSA Group.
Group operating profit increased by 10.6% to EUR 3,338 million. Operating profit of the automotive division increased by 12.6% compared to the first half of 2018 and amounted to 2,657 million euros. This group-record margin of 8.7% was achieved through a balanced lineup and further cost reductions, despite the negative impact of changes in foreign exchange rates, PSA noted.
The group's operating margin was 8.7%, an increase of 0.9 points compared to the first half of 2018. The group's non-current operating expenses amounted to €847 million compared to €750 million in the first half of 2018.
As part of the SPIC, the PSA Group plans to expand the range of cars produced in Kaluga, including through Opel models, invest in a new platform, launch the production of all-wheel drive versions of the Peugeot Expert, Peugeot Traveler, Citroen Jumpy and Citroen SpaceTourer. In addition, it is planned to localize the production of engines, which includes casting, forging and machining of key elements. Additionally, it is planned to introduce technological operations related to the localization of the production of gearboxes. Engines and gearboxes localized in Russia will be installed on models manufactured by the PSA Group in Kaluga.
As of the beginning of July 2019, the plant in Kaluga performs all basic operations: welding, painting, assembly, Russian stamping is used in the production of cars.
| The Russian market has been and remains a key one for the PSA Group. The SPIC application we filed this spring confirms this. We already produce Peugeot and Citroёn passenger and commercial vehicles at the PSMA Rus plant in Kaluga and are ready to expand the model range, continue to invest, increase localization, establish exports, produce more and offer modern and high-quality products to Russian consumers. We are very pleased that the Government and the Ministry of Industry and Trade of the Russian Federation support our initiatives by signing a special investment contract, - said Nicolas Febve, General Director of the PSMA Rus plant. |
| The signed SPICs will help attract more than 100 billion rubles to the Russian economy. private investments of the world's leading automakers and localize the production of key components: engines, gearboxes and vehicle control systems. Manufacturers that have entered into SPICs undertake obligations to deepen the localization of already well-established vehicles, as well as to expand their model range. The implementation of projects involves the supply of products not only to domestic, but also to export markets, as well as R&D in the territory of the Russian Federation. As a result of the implementation of the projects, over 1,400 high-tech jobs will be created, and more than 523 billion rubles will go to the budgets of various levels, - said Denis Manturov. |
Application for conclusion of a special investment contract
On April 22, 2019, the PSA Group applied for a special investment contract (SPIC) with the Ministry of Industry and Trade of the Russian Federation, the purpose of which is to support the development of PSA Group brands in Russia and modernize production.
| Local production is part of a long-term development strategy in Russia and a priority for the PSA group. We are ready to invest in the Russian economy through the development of new projects and the introduction of new technologies, the expansion of production and exports. The potential of our plant in Kaluga and high-quality production will contribute to the successful development of the automotive industry in Russia, - said Yanik Bezar, CEO of PSA Group, Eurasia Region. |
Investments in the project and other details of the contract before the signing of the SPIC are not disclosed.
2018
Growth of Group turnover by 18.9% to 74 billion euros
On February 26, 2019, the PSA Group published its financial results for 2018. Group turnover in 2018 amounted to 74,027 million euros, showing an increase of 18.9% compared to 2017. In terms of constant exchange rate (2015) and volume, the growth was 23.3%. The turnover of the PCD automotive division was 43,027 million euros, up 5.6% compared to 2017. This growth was due, in particular, to the expansion of the model range (+4.0%), an increase in sales volumes and entry into the markets of new countries (+1.2%), an increase in sales to partners (+1.7%) and an increase in prices ( +1.3%), which made it possible to compensate for the negative impact of changes in exchange rates (-2.7%). In 2018, the turnover of the OV Automotive Division was EUR 18,306 million compared to EUR 7,238 million in the last 5 months of 2017.
Group operating profit increased by 43% to EUR 5,689 million. PCD Automotive's operating income increased by 21.9% year-on-year in 2018 to €3,617 million, a record profit margin of 8.4%, despite rising raw material costs and negative foreign exchange impacts , emphasized in the company. This result was achieved, in particular, due to the successful renewal of the model range and cost reduction. OV's operating profit in 2018 was EUR 859 million against a loss of EUR 179 million in the last 5 months of 2017.
The Group's operating margin reached 7.7%, an increase of 1.3 points compared to 2017.
The Group's non-current operating expenses amounted to EUR 1,289 million compared to EUR 904 million in 2017. The Group's finance costs amount to EUR 446 million compared to EUR 238 million in 2017.
The consolidated profit of the Group amounted to 3,295 million euros, an increase of 948 million euros (or 40.4%) compared to 2017. The net result for the Group's share was EUR 2,827 million compared to EUR 1,924 million in 2017.
Original 2016-2018 'Push to Pass' targets exceeded by group estimates, PSA (including Opel Vauxhall) set new targets for 2019-2021: average current operating margin of over 4.5% for automotive division in the period 2019-2021.
The PSA Group also announced the transition to an updated 2019-2021 dividend policy based on a "payout ratio" with an increase of up to 28% starting from FY2019.
Growth in sales by 6.8% to 3.88 million cars
On January 15, 2019, the PSA Group summed up its activities in 2018. Group sales grew by 6.8% year-on-year to 3,878,000 vehicles. According to the company's experts, the growth is due to the following factors: renewal of the model range of the PSA group (more than 70 models were put on sale in the regions in 2 years); the implementation of the Core Model Strategy focused on customers and the development of the dealer network.
The company also set a record for light commercial vehicle (LCV) sales, with sales up 18.3% to 564,144 units. In 2016, the Group updated its range of compact vans and in 2018 - compact commercial vehicles (B-LCV). Thus, the group strengthened its position in Europe in all segments, winning more than a quarter of LCV buyers. At the same time, the development of the commercial vehicle range has created the foundation for growing overseas sales; an example is the successful launch of the Peugeot Expert and Citroën Jumpy in Eurasia and Latin America.
Particularly successful, according to the group, were PSA's SUVs, most notably the Peugeot 2008, 3008, 5008 (European leader), Citroën C3 Aircross, C5 Aircross, DS 7 Crossback, Opel/Vauxhall Crossland X, Mokka X and Grandland X. This momentum will continue in 2019 with the launch of key products across the group's brands. In addition, the first plug-in hybrid vehicles (PHEV) and electric vehicles (EV) built on multi-energy platforms will become available to customers in 2019.
| In a challenging political and economic environment, we have prospered through the implementation of the Core Model Strategy. The attractiveness of offers for B2B or B2C clients supports our pricing policy for all brands; at the same time, we are pursuing our electrified vehicle strategy,” said Carlos Tavares, Chairman of the Board of the PSA Group. |
All PSA Group vehicles are WLTP-certified, making them even more competitive. By the end of 2018, the group's market share increased by 3.8 percentage points. and reached 17.1% thanks to the brands Peugeot and Citroën, which in 2018 showed the highest sales growth of +5% for both brands among the 10 strongest brands in Europe.
DS Automobiles made a breakthrough with a 6.7% increase in sales, in part due to the entry of the DS7 into the premium market. Opel/Vauxhall continues its market penetration driven by the success of the crossover family and the optimization of distribution channels.
According to the group, PSA's commercial performance is above market average and improving in all major markets: France (+2.6 pp.),
The passenger car market in China contracted (-0.8%), with sales down 32.1%. Together with partners, the group develops a plan of action to resolve current problems. In addition, PSA is pursuing its electrification strategy in cooperation with the Fukang brand; this will be followed by electrified models starting in 2019. In addition, the Core Model Strategy is being implemented in China to offer products designed for Chinese customers with the Peugeot 3008 and 5008 models.
Sales in the ASEAN (Association of Southeast Asian Nations) region doubled from 2017 to 9,200 vehicles. The joint venture with Naza Corporation Holdings (Malaysia) is expected to reach full production capacity in 2019.
Latin America
There is a drop in sales in this region. This is largely due to the contraction of the Argentinean market (-45% in the second half of the year) due to the depreciation of the national currency, as well as complications in the Brazilian market. At the same time, good sales dynamics in the Pan-American zone (54,800 units, +12.7%) are maintained - mainly due to Chile, Mexico, Colombia, Peru, Uruguay and Ecuador.
PSA forecasts that the introduction of the C4 Cactus (an SUV produced in the region) will help boost sales. Local production of a number of LCV models also continues (launch of the Jumpy MiniBus, Berlingo, Boxer and Jumper version in Brazil; Jumpy and Expert Crewcab in Argentina and Partner electric version in Chile and Uruguay).
Here .
2014
In April 2014, Carlos Tavares, former head of Renault Nissan partner company, was appointed head of the PSA Peugeot Citroen alliance. He immediately announced his intention to reduce the number of Peugeot and Citroen models in order to get rid of duplicate cars.
Another direction of Tavares' strategy involves turning the premium DS line into a separate brand - now luxury versions of the French brand are sold under this index in Russia. For this, a separate president of DS was appointed for the first time - Yves Bonefon, who since 2012 has been positioning the company's brands. In China, the Citroen and DS brands are already separated, they have different partners and factories, and DS has more and more models and not all of them are available in other markets.
1974-1976
In 1974, Peugeot SA acquired a 38.2% stake in Citroën. In 1976, the share was increased to 89.95%. After that, the PSA Group was organized, later it was renamed PSA Peugeot Citroën, then Groupe PSA.
