Opel, Vauxhall to Relaunch Dealer Networks

PSA Group says the Opel and Vauxhall brands it acquired last year will revamp their entire European dealer networks.

The two-year plan will begin with PSA canceling its franchise agreements with all 1,600 Opel and Vauxhall dealers in Europe, including 400 in Germany and 326 in the U.K. The Financial Times says Vauxhall will refranchise about 200 outlets. Opel has not yet indicated how many of its facilities will be dropped.

The restructuring aims to cut Opel-Vauxhall dealer costs at least €1 billion ($1.2 billion) by 2022. Vauxhall says the plan will reassign some of its dealerships to other brands and set up others to sell used cars. Vauxhall insists no jobs will be eliminated.

Last year Vauxhall’s sales in the U.K. plunged 22% to 195,100 units, and its market share shrank to 7.7% from 9.3% in 2017, according to the Society of Motor Manufacturers and Traders. Deliveries in the first quarter of 2018 fell another 18% to 54,500 cars.