PSA Group has a hard nut to crack with its €2.2 billion Opel acquisition from GM that closed on August 1st, 2017. The German brand needs to be profitable, but it isn't close to that goal yet.
Second quarter losses for the company widened to roughly $250 million, and new Chief Executive Michael Lohscheller, was asked whether or not Opel will be profitable in three years time.
“Opel must be and will be profitable.”
PSA Group CEO Carlos Tavares added that Opel could be a fully electric brand at some point in the future (currently the company offers limited supply of GM's Chevrolet Bolt EV, re-badged as the Opel Ampera-e), but profitability is a must.
“If it works and companies can be profitable that’s good. But if it does not gain acceptance in the market, then everybody: industry, employees, and politicians have a big problem,”
“We as PSA will make the technology available to Opel to pursue further electrification. If Opel wants to become a fully electric brand some day, we’re ok with that, providing it is profitable.”
Additionally, Tavares thinks that EVs need to gain market acceptance without any subsidies.