New importer: Opel strengthens business in Israel

• Fresh start: Lubinski Group has taken over as importer
• Lubinski successfully sells Peugeot, Citroën and DS Automobiles vehicles in Israel
• Profitable sales growth outside Europe important pillar of PACE! plan

Opel sold some 3,000 vehicles in Israel in 2018. Top-sellers are the SUVs Opel Crossland X and Opel Grandland X 

Fresh start for Opel in Israel: The company has just started a new partnership with the renowned sales partner Lubinski Group. From now on, Lubinski will import and sell the vehicles of the German carmaker on the Israeli market. The importer already has a long and successful tradition as sales partner of the other Groupe PSA brands Peugeot, Citroën and DS Automobiles in Israel. Going forward, the new set-up will strengthen Opel’s position in this important market in the Middle East considerably.

“We have taken a further important step that will aid our growth outside of Europe by teaming up with Lubinski, a highly professional partner with a long experience in the market known for its outstanding customer services,” said Bill Mott, Director International Operations, Opel Automobile GmbH. “We are confident that our brand will perform even better in Israel with this new set-up.”

Opel sold some 3,000 vehicles in Israel in 2018. Top-sellers are the SUVs Crossland X and Grandland X and with the new importer, Opel is aiming to grow profitably going forward.

Increasing profitable sales significantly in export markets outside of Europe is one of the key pillars of the PACE! plan. Opel targets doubling overseas sales by 2020. The goal is to generate 10 percent of the Opel sales volume outside of Europe by the mid-2020s. To reach this, the brand is further strengthening its presence in the export markets in Asia, Africa and South America where it is already present today. It will also enter more than 20 new export markets by 2022 – including the comeback in Russia this year still. 

Groupe PSA achieves strong profitability in H1 2019

• €38.3 billion Group revenue
• 8.7% Automotive division [1] recurring operating margin [2]
• 8.7% Group recurring operating margin
• €1.599 billion Group [3] free cash flow [4] including the acquisition of Clarion by Faurecia
• €2.287 billion Automotive division free cash flow

Carlos Tavares, Chairman of Groupe PSA Managing Board said: “Thanks to our focus on our strategic plan execution, we have delivered strong Free Cash Flow and Recurring Operating Margin in H1. We are ready for electrification and to embrace the next technological challenges. Our agility and aligned management team remain key assets to reach the targets of the Push to Pass plan.”

Group revenue amounted to €38,340 million in the first half of 2019, down by 0.7% compared to 2018 H1. Automotive division revenue amounted to €30,378 million down by 1.1% versus 2018 H1, mainly driven by product mix (+2.9%) and price (+1.3%), which partially offset the decrease of sales to partners (-2.2%), the negative impact of exchange rates (-0.8%), volumes and country mix (-1.4%) as well as others (-0.9%).

Group recurring operating income amounted to €3,338 million, up 10.6% with Automotive recurring operating income up 12.6% at €2,657 million. This 8.7% strong profitability level was reached thanks to a positive product mix and further cost reductions, despite exchange rate headwinds.

Group recurring operating margin reached 8.7%, up 0.9 pt versus 2018 H1.

Group non-recurring operating income and expenses amounted to -€847 million, compared to -€750 million in 2018 H1.

Group net financial expenses decreased to -€166 million compared to -€218 million in 2018 H1.

Consolidated net income reached €2,048 million, an increase of €335 million compared to 2018 H1. Net income, Group share, reached €1,832 million, up €351 million compared to 2018 H1.

Banque PSA Finance reported recurring operating income of €513 million[5], up 0.6%.

Faurecia recurring operating income was €634 million, down 1.2%.

The free cash flow of manufacturing and sales companies was €1,599 million of which €2,287 million for the Automotive division.

Total inventory, including independent dealers and importers [6], stood at 659,000 vehicles at 30 June 2019, at the same level as 30 June 2018.

The net financial position of manufacturing and sales companies was €7,906 million at 30 June 2019 after IFRS 16 effect and Clarion acquisition by Faurecia.

Market outlook: in 2019, the Group anticipates a decrease by 1% of the automotive market in Europe, by 4% in Latin America and by 7% in China and growth of 3% in Russia.

Operational outlook:

Groupe PSA has set the target to deliver over 4.5% Automotive recurring operating margin [7] on average for the period 2019-2021.

[1] Automotive Division (PCDOV)

[2] Recurring operating income related to revenue

[3] Sales and manufacturing companies

[4] Free Cash Flow = Cash flow + restructuring + change in working capital requirement + capex and capitalized R&D

[5] 100% of the result of Banque PSA Finance. In the financial statements of Groupe PSA, joint ventures are consolidated using the equity method.

[6] Including Peugeot importers outside Europe

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

Appointment of Michael Lohscheller to the Managing Board of Groupe PSA

Michael Lohscheller, Opel Chief Executive Officer

The Supervisory Board met on 23 July 2019, decided to appoint Michael Lohscheller, Opel Chief Executive Officer, as a member of the Managing Board effective from 1 September 2019 until the Managing Board’s term of office expires on 2 April 2021. He succeeds Jean - Christophe Quémard, Executive Vice President, Director Middle-East & Africa. The Supervisory Board thanks Jean-Christophe Quémard for his significant contribution to the Management Board since 2012. He remains member of the Global Executive Committee.

Michael Lohscheller's appointment to the Managing Board reflects the importance of Opel Vauxhall's integration into Groupe PSA. He will bring to the Managing Board his international experience gained from several OEM, as well as his expertise in finance, trade and logistics.

On this appointment, Louis Gallois, Chairman of the Supervisory Board of the Groupe PSA says: ‘I am very pleased, with the members of the Supervisory Board, to welcome Michael Lohscheller to the Groupe PSA Managing Board. It is in line with the Group's and the Supervisory Board's willingness to continue the internationalization of its senior management. It acknowledges the role taken by Michael Lohscheller in the turnaround of Opel Vauxhall’.

Michael Lohscheller is Chief Executive Officer (CEO) of Opel Automobile GmbH since 2017. Before taking over the position, he was responsible for the automaker’s finances.

Prior to joining Opel in September 2012, Michael Lohscheller was Executive Vice President and CFO at Volkswagen Group of America, where he led a successful turnaround.

During more than 20 years working for different automobile companies, Lohscheller had broad business responsibilities in different areas finance, e.g. marketing and sales, purchasing and logistics.

Lohscheller received a degree in business administration in 1992 after studying at the University of Applied Sciences in Osnabrück, Germany, and the University of Barcelona, Spain. In 1996, he earned a Master of Arts degree in European Marketing Management at Brunel University in London in parallel to his professional activity.