PSA CEO Supports Newly Acquired Opel’s Decision To Focus On Electric Cars, But Says Switch Must Be Profitable

4 weeks ago by Mark Kane 9

Opel Ampera-e

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.

Opel Ampera-e

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.

source: Reuters

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9 responses to "PSA CEO Supports Newly Acquired Opel’s Decision To Focus On Electric Cars, But Says Switch Must Be Profitable"

  1. Bacardi says:

    Solution? Build non-geeky EVs…

    1. Clive says:

      Now what fun would that be…

  2. John says:

    100 kWh battery and 25000€ price.

  3. trololo says:

    Meanwhile in Europe, we are still breathing your toxic emissions … Thanks a lot PSA.

  4. Asak says:

    Honestly I think a lot of these CEOs are kind of stupid. Yes, EVs need to gain acceptance without subsidies, but the subsidies are currently there because of the cost. Batteries and electric drive trains are currently still too expensive for EVs to be successful without subsidies.

    There’s no reason to think that prices are not going to come down.

  5. wavelet says:

    Huh? How exactly does Opel become an “all-electric brand”? It doesn’t currently have any EV development of it’s own, no team, no prototypes, no concepts, nothin’ (*).

    PSA itself does have plans for a series of EVs in place, and hav already been working for 1.5-2 years (common R&D with Chinese maker DongFeng), so it makes for sense for any EVs by PSA group
    to be based on them.

    (*)Sure, I expect GM contracted to continue sell rebadged Bolts + spare parts to PSA/Opel for 2-3 years, but that’s another thing entirely.

    1. Moché says:

      If PSA has EV plans and technology, why couldn’t Opel become an all-electric brand ?

      1. SJC says:

        They could if they got the rights to the Bolt.

  6. Clive says:

    Good luck with that!

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