PSA Will Trim Opel Lineup, Focus Brand on EVs

PSA Group plans to drop several low-end Opel models and make the brand a center of excellence for electrified powertrains, according to the Frankfurter Allgemeine Zeitung.

The German newspaper also says PSA will consolidate Opel’s purchasing operations with its own and make Opel’s tech center in Russelsheim an engineering center for the electrification of all PSA Group vehicles.

When current Opel models are replaced, they will be built on PSA platforms and use PSA powertrains, the report adds. The moves are intended to enable Opel to break even by 2019 and generate a 2% operating margin in 2020, according to the Frankfurter Allgemeine. It says PSA will reveal details during a press conference on Thursday.

PSA acquired Opel for $2.5 billion in a deal completed with General Motors Co. in August. At the time, PSA said Opel would become profitable by 2020 and deliver a 6% operating margin by 2026.