Opel will shorten the model range and switch to electric vehiclesNovember 8, 2017
The breakeven point, the Germans will have to pass in 2019 and receive a minimum of 2 percent profit in 2020.
Opel will reduce the number of its models to focus on segments of the market with a high margin, and will also concentrate in its hands the development of the electrification of future vehicles of the PSA Group. This is reported by the German newspaper Frankfurter Allgemeine Zeitung.
According to the article, the announced changes are the key point of the new Opel restructuring plan, which will be presented at a press conference on Thursday by the company’s head Michael Lochscheller at the headquarters in Rousselheim, Germany. The general director of concern PSA Carlos Tavares also will take part in this action.
The Opel Technical Center near Frankfurt will become the base for all engineering services engaged in partial or complete electrification of all novelties from the PSA. In terms of the restructuring of the German automaker, there will also be tasks to reduce labor costs in order to achieve an acceptable and competitive price level.
All future Opel models will also be based on PSA technologies and platforms, including engines and transmissions. This will help the German company achieve its fuel efficiency targets and reduce CO2 emissions.
The restructuring plan for Opel is part of the strategy introduced by Tavares and aimed at returning PSA to profitability after years of operating loss.