PARIS, Aug. 1 (Xinhua) -- PSA Group, France's leading auto manufacturer, on Tuesday said it had finalised the purchase of Opel and Vauxhall brands from General Motors, making the French group Europe's second largest automotve company.
"We are witnessing the birth of a true European champion today. We will assist Opel and Vauxhall's return to profitability and aim to set new industry benchmarks together," said Carlos Tavares, PSA Chairman
"Opel will remain German, Vauxhall will remain British. They are the perfect fit to our existing portfolio of French brands Peugeot, Citroen and DS Automobiles," he added.
Unveiled in March, the deal, worth 2.2 billion euros (2.59 billion U.S. dollars), will help PSA to become Europe's second largest car manufacturer by market share and "strengthen its presence in the major European markets and this will serve as a foundation for profitable growth worldwide," according to the statement.
With PSA support, Opel and Vauxhall planned to present in 100 days a strategic plan aimed at re-establishing economic fundamentals.
General Motors brands also "will ensure its execution, boosted by synergies generated by the new Group, estimated to 1.7 billion euros per year in the mid term," PSA said.
The PSA Group, which owns Peugeot, Citroen and DS brands, expects the purchase of Opel and Vauxhall to take its recurring operating margin to 2 percent by 2020 and 6 percent by 2026, and to generate a positive operational free cash flow over the next three years.( 1 euro = 1.18 U.S. dollars)
A single purchase
