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PSA Trims Opel’s Fixed Costs by 17%
PSA Group CEO Carlos Tavares tells investors the company has already cut the operating costs of its Opel unit by 17%. PSA finalized the purchase of Opel from General Motors Co. last August.
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PSA Group CEO Carlos Tavares tells investors the company has already cut the operating costs of its Opel unit by 17%.
PSA finalized the purchase of Opel from General Motors Co. last August. The unit, which lost about €400 million through the first half of 2017, posted a loss of €179 million ($221 million) through the last five months of the year.
Tavares says PSA, which booked Opel restructuring costs of €440 million ($543 million) last year, will offer new guidance about the unit early next year, Automotive News Europe reports. Tavares reiterates goals of generating positive operating margins for Opel of 2% by 2020 and 6% by 2026.
PSA says Opel’s ratio of labor costs to revenue is 15% compared with about 10% for PS’s other operations.
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