Peugeot Buys Vauxhall-Opel From GM Europe

A company on the verge of financial collapse just five years ago is now making waves in Europe. Groupe PSA, which owns Peugeot, Citroën and DS Automobiles, has now added the Opel and Vauxhall brands to its kitty. The ownership of these two brands has changed hands from GM Europe to Groupe PSA for a combined value of 2.2 billion euros (Rs 15,500 crore). The combined production capabilities of all the PSA brands now stand at 10 lakh cars a year.

With the latest acquisition, PSA has become the second-largest automaker in Europe, behind the Volkswagen group. GM Europe was on the lookout for a buyer of the Opel and Vauxhall brands for a long time, considering it had been a loss-making business for 16 long years! 

Peugeot was also in the news recently for buying the rights to the Ambassador brand from Hindustan Motors in India. It will also collaborate with HM/CK Birla group to set up a production facility in Tamil Nadu with an investment of around Rs 700 crore. This new production facility, which would initially have a capacity of assembling 1 lakh cars annually, may re-introduce the Opel brand in India after a gap of about 10 years.

PSA CEO Carlos Tavares is aware that European car brands, especially German ones, are held in high regard in markets outside of Europe. The Opel brand’s credentials seem to fit into the group’s long-term aim to increase its reach beyond continental Europe and in markets like India. The Peugeot, Citroën and DS Automobiles brands may not be a hit in the Indian market initially, which makes Opel the best bet for the company. Opel sold the Astra sedan, the Optra Vectra sedan and the Corsa sedan and hatchback before shutting shop in 2010.