Questions about how Opel’s separation from GM will affect car owners
It is still unclear how the separation of Opel from General Motors (GM) will affect operations in SA’s small and highly competitive vehicle market. On Monday, PSA Group, the French company that owns Peugeot and Citroen, said it had agreed to buy Opel from GM in a deal valuing the business at £2.2bn, creating a new regional car giant to challenge market leader Volkswagen. PSA 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 £1.7bn in joint cost savings. However, neither GM nor PSA is in a strong position in SA, with Peugeot selling just 22 cars in the country in February and ending its import of Citroen vehicles late in 2016. GM SA is currently operating on the basis of a special dispensation from the Department of Trade and Industry as it continues to fail to meet the 50,000 unit production volume required for support under the Automotive Production and Development Programme (APDP). "At th...
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