As I compose this, high-level discussions are taking location about the future of one of the UK’s biggest as well as most important vehicle brands: Vauxhall.
GM, the us owner of Vauxhall as well as Opel, is in talks with PSA, maker of Peugeot, Citroen as well as DS cars, about selling its loss-making European business. Meanwhile, UK politicians as well as union leaders are fretting about the threat of factory closures.
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This all comes at a time when there’s genuine hope for Vauxhall as well as Opel’s line-up in Europe. new SUVs are arriving, while the excellent Astra provides a strong indicator of exactly how great the new Insignia will be. Meanwhile, the Ellesmere Port as well as Luton plants are among the most productive in Europe.
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But why would PSA want to buy brands that contend directly with their existing line-ups? PSA manager Carlos Tavares has shown his skill at turning around an ailing business; his ‘Back in the Race’ plan, morphing into ‘Push to Pass’, has heralded huge expense cost savings as well as impressive, sought-after new product that’s now leading to strong profit. might he do the exact same with Vauxhall as well as Opel?
There’s no question PSA would be drawn in by the stamina of GM’s brands in Europe’s strongest markets: Germany as well as the UK. as well as the efficiencies of innovation sharing that the Volkswagen group has so effectively proven cannot be in doubt.
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But where would Vauxhall as well as Opel sit between a resurgent Citroen, an progressively impressive Peugeot as well as interesting new premium brand DS? I’m sure Tavares has a plan, however it’ll have to be a strong one.
While this may make monetary sense for GM, it might turn out to be one more example of this fantastic American business providing up on Europe – keep in mind Saab as well as Chevrolet? Let’s hope PSA sees more value in Vauxhall as well as Opel than GM does.
What do you believe of the present specify of the general Motors as well as PSA talks? let us understand below…