Thursday 31 October 2019

Groupe PSA and FCA plan to join forces to build world leader for new era in sustainable mobility





Discussions have opened a path to the creation of a new group with global scale and resources owned 50% by Groupe PSA shareholders and 50% by FCA shareholders. In a rapidly changing environment, with new challenges in connected, electrified, shared and autonomous mobility, the combined entity would leverage its strong global R&D footprint and ecosystem to foster innovation and meet these challenges with speed and capital efficiency.


  • Combination would create the 4th largest global OEM in terms of annual unit sales (8.7m vehicles)
  • At its inception, the combined company would realize among the highest margins in the markets where it would operate, based on FCA’s strength in North America and Latin America and Groupe PSA’s in Europe
  • Combination would unite the groups’ respective brand strengths across Luxury, Premium, Mainstream Passenger Car, SUV and Trucks & Light Commercial – making them stronger together
  • Merged entity would bring together the companies’ extensive and growing capabilities in the technologies shaping the new era of sustainable mobility, including electrified powertrain, autonomous driving and digital connectivity
  • Approximately €3.7 billion estimated annual run-rate synergies without any plant closures resulting from the transaction
  • Highly respected combined management team recognised for exceptional value creation and with proven success in previous OEM combinations
  • Dutch parent company Board would have balanced representation and a majority of independent Directors. John Elkann as Chairman and Carlos Tavares as CEO and member of the Board

Supervisory Board of Peugeot S.A. and the Board of Directors of Fiat Chrysler Automobiles N.V. (“FCA”) (NYSE: FCAU / MTA: FCA). have each unanimously agreed to work towards a full combination of their respective businesses by way of a 50/50 merger. Both boards have given the mandate to their respective teams to finalize the discussions to reach a binding Memorandum of Understanding in the coming weeks.

The plan to combine the Groupe PSA and FCA businesses follows intensive discussions between the senior managements of the two companies. Both share the conviction that there is compelling logic for a bold and decisive move that would create an industry leader with the scale, capabilities and resources to capture successfully the opportunities and manage effectively the challenges of the new era in mobility.

The proposed combination would create the 4th largest global OEM in terms of unit sales (8.7 million vehicles), with combined revenues of nearly €170 billion[1] and recurring operating profit of over €11 billion[2] on a simple aggregated basis of 2018 results excluding Magneti Marelli and Faurecia. The significant value accretion resulting from the transaction is estimated to be approximately €3.7 billion in annual run-rate synergies derived principally from a more efficient allocation of resources for large-scale investments in vehicle platforms, powertrain and technology and from the enhanced purchasing capability inherent in the combined group’s new scale. These synergy estimates are not based on any plant closures.

It is projected that 80% of the synergies would be achieved after 4 years. The total one-time cost of achieving the synergies is estimated at €2.8 billion.

The shareholders of each company would own 50% of the equity of the newly combined group and would therefore share equally in the benefits arising from the combination. The transaction would be affected by way of a merger under a Dutch parent company and the governance structure of the new company would be balanced between the contributing shareholders, with the majority of the directors being independent. The Board would be composed of 11 members. Five Board members would be nominated by FCA (including John Elkann as Chairman) and five would be nominated by Groupe PSA (including the Senior Independent Director and the Vice Chairman)[3]. The Chief Executive Officer would be Carlos Tavares for an initial term of five years and he would also be a member of the Board.

Carlos Tavares said: “This convergence brings significant value to all the stakeholders and opens a bright future for the combined entity. I’m pleased with the work already done with Mike and will be very happy to work with him to build a great company together.”

Mike Manley said, "I'm delighted by the opportunity to work with Carlos and his team on this potentially industry-changing combination. We have a long history of successful cooperation with Groupe PSA and I am convinced that together with our great people we can create a world class global mobility company."

The new group’s Dutch-domiciled parent company would be listed on Euronext (Paris), the Borsa Italiana (Milan) and the New York Stock Exchange and would continue to maintain significant presences in the current operating head-office locations in France, Italy and the US.

It is proposed that the by-laws of the new combined company would provide that the loyalty voting program will not operate to grant voting rights to any single shareholder in the Shareholders Meeting exceeding 30%[4] of the total votes cast. It is also foreseen that there would be no carry over of existing double voting rights but that new double voting rights would accrue after a three-year holding period after completion of the merger.

A standstill in respect of the shareholdings of EXOR N.V., Bpifrance Participations SA, DFG and the Peugeot Family would apply for a period of 7 years following completion of the merger. EXOR, Bpifrance Participations and the Peugeot Family would be subject to a 3-year lock-up in respect of their shareholdings except that the Peugeot Family would be permitted to increase its shareholding by up to 2.5% during the first 3 years following the closing, only by acquiring shares from Bpifrance Participations and DFG.

Prior to the completion of the transaction, FCA would distribute to its shareholders a special dividend of €5.5 billion, as well as its shareholding in Comau. In addition, prior to completion, Peugeot would distribute to its shareholders its 46% stake in Faurecia. This would enable the combined groups’ shareholders to equally share in the synergies and benefits that would flow from a merger while recognizing the significant value of FCA’s differentiated platform in North America and strong position in Latin America, including its market-leading margins in those regions. It would also reflect the added value that FCA’s higher-end global brands Alfa Romeo and Maserati would bring given their substantial development potential.

Extended portfolio would cover all market segments with iconic brands and strong products based on rationalized platforms and optimization of investments.

Proposal would be submitted to the information and consultation process of the relevant employee bodies, and would be subject to customary closing conditions, including final board approvals of the binding Memorandum of Understanding and agreement on definitive documentation.

Wednesday 30 October 2019

Groupe PSA Q3 2019 Results

Q3 2019 Group revenue growth

  • Group Q3 revenue up 1% at €15.6 billion;
  • Automotive division [1] revenue up 0.1% at €11.8 billion;
  • New growth of market share in Europe : +0.1 pt [2]



Groupe PSA revenue amounted to €15,579 million in Q3 2019 compared to €15,428 million in Q3 2018.

Automotive division revenue amounted to €11,824 million up by 0.1% compared to Q3 2018. A strong product mix (+4.4%) as well as positive price conditions (+1.0%) more than offset the decrease of sales to partners (-3.2%), the negative impact of exchange rates (-0.8%) including hyperinflation in Argentina as well as volumes and country mix (-0.7%) and others (-0.6%). Strong product mix stems from the success of the group’s last launches in particular Citroën C5 Aircross, Peugeot 508, DS 3 CROSSBACK and Opel /Vauxhall Combo.

Group has sold 674,000 cars in the world in Q3 2019 while continuing to prioritize profitability and to prepare efficiently the 2020 regulatory deadlines.

Total inventory, including independent dealers and importers [3], stood at 574,000 vehicles at the end of September 2019, down 29,000 units compared to end of September 2018.

Faurecia revenue was up 4.3% at €4,185 million.

Market outlook: in 2019, the Group anticipates a decrease by 1% of the automotive market in Europe, by 5% in Latin America, by 7% in China and by 2% in Russia.

Operational outlook (unchanged):

Groupe PSA has set the target to deliver over 4.5% Automotive recurring operating margin[4] on average for the period 2019-2021.

[1] Automotive Division (PCDOV)

[2] Q3 2019 vs Q3 2018, Europe 30

[3] Including Peugeot importers outside Europe

[4] Automotive Division (PCDOV) recurring operating income related to revenue

Tuesday 29 October 2019

Opel Continues Electrification Offensive: 8 Electrified Models by 2021

  • Electrification offensive gaining further momentum
  • Electrification of entire portfolio by 2024
  • Roll-out of electrification is key pillar of the PACE! company plan


Opel Grandland X Hybrid4 and Opel Corsa-e

Opel continues to push ahead with its large-scale electrification offensive. As early as 2021, the traditional brand from Rüsselsheim will offer a total of eight electrified vehicles in important volume segments.

New Opel Grandland X Hybrid4

“We will electrify our entire product portfolio by 2024. Further models will follow very soon after we made the start with the Opel Corsa-e and the Opel Grandland X Hybrid4 this year,” said Opel CEO Michael Lohscheller.

New Opel Corsa-e

Next year the battery electric version of the Opel Vivaro transporter and the electric version of the Mokka X successor will be added to Opel’s electric line-up. Electric variants of the Opel Combo Cargo and Opel Combo Life along with the electric version of the Opel Zafira Life will be added in 2021. Opel’s portfolio of electrified vehicles will also include an electrified version of the next generation Astra.

“This product portfolio will put us in an excellent position to meet the ambitious future emission targets in Europe," said Opel CEO Lohscheller. "Electro-mobility is an indispensable component in this. But our ultra-modern and efficient combustion engines and research into fuel cells at the Rüsselsheim-based Centre of Competence will also make an important contribution to making our company sustainable and future-proof.”

Monday 21 October 2019

All-New Opel Corsa is AUTOBEST 2020 Finalist

  • All-New Corsa competes for “Best Buy Cars of Europe” prize
  • Practical, stylish and dynamic all-new Opel Corsa ideal for singles, couples and families
  • Sixth-generation Opel Corsa also available as all-electric version


All-New Opel Corsa

All-new Opel Corsa has been named one of the finalists for AUTOBEST 2020. By reaching the final, the German small car is one of five remaining strong contenders for the title – the Nissan Juke, Peugeot 208, Renault Clio and Skoda Kamiq. Winner will be announced in mid-December.

The sixth generation of the practical, stylish and dynamic Opel Corsa made its premiere at the IAA Frankfurt International Motor Show in September 2019. An all-electric version is also available for the first time.

New Opel Corsa-e
A jury consisting of journalists from 31 European countries tests new models eligible for the coveted AUTOBEST award. Winner will be named “Best Buy Car of Europe 2020”.

To win AUTOBEST, a car must represent the best offer for the majority of European customers. Price, service network, spare parts distribution and versatility are the most important criteria in the voting process. Design and new technologies are also critical factors.

Friday 18 October 2019

All-New Opel Corsa is “Company Car Of The Year”

  • Little Opel has mobilized millions for decades
  • All-New Opel Corsa democratizes technology for everyone
  • Sixth generation also available as all-electric version


All-New Opel Corsa is “Company Car Of The Year”


Technician, courier or CEO – all sorts drive company cars. But which one is the best? Auto Bild asked this question and the magazine’s readers answered: the new Opel Corsa. The “little” German has been voted “Company Car Of The Year” in the small car category. This is the first media-prize to be won by the sixth-generation Corsa, which was presented at the IAA Frankfurt International Motor Show in September.


“Along with the Opel Astra, Opel Corsa is our most important model in Europe”, said Harald Hamprecht, Opel’s Vice President Communications at the “Company Car Of The Year” prize-giving in Berlin. “Opel has democratized mobility for 120 years. We make pioneering technologies accessible for everyone. That is what we stand for, that is what the all-new Opel Corsa stands for, and our customers appreciate it – especially in the company car area.”



Car for millions since 1982

Depending on the version, Opel Corsa (which picked up 22 per cent of the votes for “Company Car Of The Year”) is ideal for singles and couples, as well as company car drivers and families. Around 14 million units produced in 37 years provide the proof. Opel Corsa first joined the model range below Opel Kadett in 1982. Opel Corsa A, which was originally conceived for first-time buyers and those on an economy budget, became a bestseller, achieving sales of 3.1 million by 1993. The sixth generation of the practical, stylish and dynamic Opel Corsa made its premiere at the IAA Frankfurt International Motor Show in September 2019. An all-electric version is also available for the first time. Opel Corsa-e is ideally equipped for the future as well as everyday driving.

Readers of Auto Bild elected the company car of the year for the second time. They chose from vehicles in seven categories, from small and compact cars to luxury automobiles and plug-in hybrids.

Tuesday 15 October 2019

Opel presents new Corsa-e Rally at German Rally Championship finale

  • Brand cup: introduction of ADAC Opel e-Rally Cup to DRM participants
  • Presentation: Opel Corsa-e Rally at ADAC 3-Städte Rallye on October 18-19
  • Development: test phase of Opel’s new electric racing car has begun


Opel Corsa-e Rally

Development of the Opel Corsa-e Rally has begun as planned. New electric racing car powered by a 50 kWh battery is currently undergoing numerous endurance and performance tests at the Test Center in Dudenhofen. This will ensure that the 136hp Corsa-e Rally with 260 Nm of torque meets the high standards of the ADAC Opel e-Rally Cup. The debut of the world's first rally brand cup for electric cars is scheduled for late summer 2020. The first Cup season will include at least eight events over the year into 2021, primarily within the framework of the German Rally Championship (DRM). The final schedule is planned to be announced at the Essen Motor Show (November 30 – December 8, 2019).



Opel Corsa-e Rally will already be presented to participants and media representatives next weekend (October 18-19) at the 2019 DRM season finale, the ADAC 3-Städte Rallye around Freyung in Lower Bavaria. Presentation of the ADAC Opel e-Rally Cup and the associated Opel and ADAC joint promotion concept is scheduled for Friday at 1 p.m. for the teams and at 2 p.m. for media representatives. Electric racing car will be on display in the Freyung service area on both rally days. Opel Motorsport Director Jörg Schrott will be on site and available to answer any questions from interested parties and journalists.


“Until now the German rally scene was able to read about the Opel Corsa-e Rally and admire the vehicle for the first time at the official world premiere at the International Motor Show in Frankfurt – and now we are pleased to present our show car to the rally teams at the DRM season finale. Some potential participants, some of them from abroad, will travel to the ADAC 3-Städte Rallye specifically to see the vehicle and learn more about our forward-looking concept on site. We're looking forward to the contact and interaction with the teams,“ says Jörg Schrott.



Tuesday 8 October 2019

Opel CEO Michael Lohscheller Awarded “MANBEST 2019” by the AUTOBEST Jury


Opel CEO Michael Lohscheller with New Opel Corsa-e

Next honour for Opel CEO Michael Lohscheller: After already winning the “Eurostar 2019” award presented by industry magazine Automotive News Europe, Lohscheller has now been recognized by the renowned AUTOBEST jury and named “MANBEST 2019”.

“This award is obviously a great honour for me personally, but I would like to dedicate it to our entire team. Opel’s comeback story since becoming part of Groupe PSA would not have been possible without the commitment and dedication of each and every Opel employee. We can once again be proud of our brand and proud of what we have achieved as a team. And I promise that together we will ensure that the Opel Blitz continues to shine,” said Michael Lohscheller.

“In a time when Opel was searching for the path to success, Michael Lohscheller was the right man, at the right time, with the right vision and strategy to push the German carmaker into a new era of success. Michael Lohscheller is the first European CEO of Opel who has successfully driven the company to profit after almost two decades,” said AUTOBEST Chairman Dan Vardie.

Following the takeover of Opel by Groupe PSA in the summer of 2017, the management team led by Michael Lohscheller developed a comprehensive restructuring plan called PACE!. Overarching goals: with PACE! Opel will become sustainably profitable, global and electric. Consistent implementation of this plan under Lohscheller has seen Opel register a recurring operating income of €859 million in 2018 – the highest operating profit in the 157-year company history after nearly 20 years of losses. In the first half of 2019, Opel was able to further improve its results and achieved an operating income of €700 million in a difficult environment for the entire industry.

“MANBEST” award, which was introduced to recognize the leading automotive managers has been presented by AUTOBEST since 2001. AUTOBEST jury members represent 31 European countries, making it the largest independent motoring jury in the world in terms of the number of represented countries.

Monday 7 October 2019

Production of All-New Opel Corsa Starts in Zaragoza

  • Sixth generation of the bestseller is even more modern, efficient, dynamic and attractive
  • Opel goes electric: Battery electric Opel Corsa-e to follow in early 2020


All-New Opel Corsa: Groupe PSA Chairman of Managing Board Carlos Tavares, King Felipe VI of Spain, Opel CEO Michael Lohscheller


Sixth generation of the Opel Corsa is now rolling off the production line at the Spanish Groupe PSA plant in Zaragoza: King Felipe VI of Spain, Groupe PSA Chairman of the Managing Board Carlos Tavares and Opel CEO Michael Lohscheller kicked off serial production of the Opel bestseller at a ceremony with employees and invited guests on Monday.

New Opel Corsa is now rolling off the production line at the Spanish Groupe PSA plant in Zaragoza

Sixth generation of the small car is even more modern, efficient, dynamic and attractive than its predecessors. All-New Opel Corsa is one of the most aerodynamic models in its class and considerably lighter than its predecessor. Weight reduction matches the overall sporty impression – the lightest Opel Corsa stays below the 1,000 kilogramme mark. In addition, there are highly efficient engines with lower fuel consumption and CO2 values than the best of the previous generation.

“Corsa is not only one of the most successful models in recent history with sales of around 14 million units in the last 37 years but also a milestone in our electrification offensive. As of early 2020, we will also build the Corsa-e in Zaragoza. Corsa-e will be the first fully electric Opel “made in Europe”. This is a very clear sign that we are bring the future to the Zaragoza plant with the new Corsa – and that Opel goes electric,” said Opel CEO Michael Lohscheller.

Opel Corsa-e, which comes with an output of 100 kW (136 hp) and an electric range of 330 kilometres (WLTP)1, makes electric mobility accessible to everyone. Together with the Opel Grandland X Hybrid4, the Corsa-e will sound in the electric era at Opel. Brand with the “Blitz” will offer an electric version of every model in its portfolio in 2024 already.

Wednesday 2 October 2019

High Efficiency: New Opel Corsa and New Opel Astra with Energy-Saving LED Headlights

  • Each headlight consumes only 13 Watt on dipped beam
  • Savings of up to 1.3 grams CO2 per kilometre in New European Driving Cycle (NEDC)
  • Special reflector technology ensures optimum brightness

New Opel Astra Sports Tourer with Energy-Saving LED Headlights


Optimum light output, minimum energy consumption. In order to further reduce CO2 emissions, Opel is offering highly efficient LED headlights on the new Astra and the new Corsa. The newest generations of these bestselling models made their debut a few days ago at the IAA Frankfurt International Motor Show.

New Opel Corsa with Energy-Saving LED Headlights

Emissions of the new Opel Corsa are very low – not only because the sixth generation of the best-selling small car is powered by highly efficient engines. New Opel Corsa is also optionally available with especially efficient LED lighting. Each headlight consumes only 13 Watt. That is an energy saving of 81 per cent compared with halogen, which gobbles up around 70 Watt per headlight. But this does not mean that customers must accept compromises in light output; on the contrary, thanks to a special reflector technology, LED headlights turn night into day.

New Opel Corsa is also optionally available with especially efficient LED lighting.

“New Corsa and Astra continue the Opel tradition of leadership in innovation”, said Ingolf Schneider, head of lighting technology at Opel. “Our development objective was to bring optimum light with minimum consumption to our cars. In future we want to use energy-saving LED lighting throughout the vehicle.”

On average, the LED headlights on the entry-level Corsa alone save 1.3 grams of CO2 per kilometre (according to NEDC). With the petrol turbo engine it is 1.38 g/km and 1.23 g/km with the diesel (fuel consumption NEDC1: urban 5.5-3.7 l/100km, extra-urban 4.2-2.9 l/100km, combined 4.7-3.2 l/100km, 106-85g/km CO2; fuel consumption WLTP2 combined: 6.2-4.0 l/100km, 140-105g/km CO2).

Opel Astra five-door saves 1.26 g/km CO2 (according to NEDC). The petrol turbo scores with 1.34 g/km CO2, the diesel with 1.19 (fuel consumption NEDC1: urban 6.3-3.9 l/100 km, extra-urban 4.3-3.1 l/100 km, combined 5.1-3.4 l/100 km, 116-90 g/km CO2; fuel consumption WLTP2 combined: 6.1-4.3, 141-112 g/km CO2; preliminary figures).

Instead of measuring emissions on a dynamometer, Opel’s engineers obtain the possible CO2 savings of a light source versus halogen more efficiently with the help of a mathematical formula. Calculation considers, among other things, how much wattage each light source actually saves in comparison to halogen, as well as the fact that drivers usually only use dipped beam in darkness, which accounts for just one third of all driving. Accordingly, only one third of the total drive-duration is included in the calculation.

One question remaining concerns the optimum light output at reduced wattage. Opel compensates for the lower electrical power of the LEDs with special reflector technology. Reflector of each headlight is shaped like a shovel so that the maximum amount of light from each LED is projected onto the road. New LED headlights from Opel are therefore extremely efficient, not only in energy consumption but also in terms of form and light-output.

New Opel Astra: Reflector of each headlight is shaped like a shovel so that the maximum amount of light from each LED is projected onto the road.