Published: Fri, November 10, 2017
Markets | By Rosalie Gross

Electric Corsa heads up Vauxhall's push for profits

Electric Corsa heads up Vauxhall's push for profits

Wage costs will be pared from about 15 percent of revenue to an 11 percent benchmark as Opel negotiates voluntary departures, early retirements and shorter hours with its workers - part of a broader effort to cut 700 euros of costs per vehicle.

Despite the faster pace, however, PSA maintained both the 1.7 billion euro synergies goal and its 2026 deadline, with 1.1 billion or roughly two-thirds of that amount due by 2021. By 2020, Lohscheller wants Opel to have a 2 per cent operating margin, rising to 6 per cent by 2026.

Although the reduction may seem a little drastic, it's part of the group's PACE! initiative that aims to return Vauxhall to profitability by 2020 - a smaller range of drivetrains and platforms will enable it implement the plan.

Opel would also follow the electrification path, aiming to become the Carbon dioxide leader in Europe.

According to Carbuyer, the forthcoming electric Corsa, plus a plug-in hybrid version, will be among four new electrified models that will join the Vauxhall line-up by 2024.

In the announcement, made by newly appointed chief executive of Opel Automobile GmbH, Michael Lohscheller, the firm said all passenger auto lines will be electrified by 2024, offering a pure battery electric propulsion or plug-in hybrid version, alongside efficient internal combustion engines. For starters, an EMP2-based SUV is planned for Eisenach in 2019; and an EMP2-based D-segment vehicle is coming to Rüsselsheim.

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Lohscheller commented: "PACE! will unleash our full potential".

"This plan is paramount for the company, to protect our employees against headwinds and turn Opel-Vauxhall into a sustainable, profitable, electrified, and global company", Lohscheller said as he presented the plan. Our future will be secured and we will contribute with German excellence to the Groupe PSA development. It will be a centre of competence for alternative fuels, including fuel cell technology, certain automated driving and driver assistance features, and software configuration. Drivetrain families will similarly drop from 10 to four. Instead, Opel/Vauxhall will switch to flexible Groupe PSA vehicle architectures faster than originally expected.

From 2024 onwards, all Opel/Vauxhall passenger vehicle models will be based on joint Groupe PSA architectures. This course will be steadily continued with one major launch per year.

Vauxhall has set out its plans for future profitability, and electrification is high on the agenda.

Furthermore, the company, which is now mainly selling its cars in Europe, announced that it will enter more than 20 new markets.

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