Opel returns to profitability under PSAby Drew Johnson
The Opel/Vauxhall group is flourishing under PSA.
Opel, along with its sister Vauxhall brand, has posted a profitable 2018 under the new leadership of France's PSA. Prior to finishing 2018 in the black, Opel had finished the previous 20 years in the red under the ownership of General Motors.
Revenue at PSA's Opel/Vauxhall division climbed to 18.306 billion euros in 2018, netting an operating income of 859 million euros. Opel/Vauxhall also achieved a 4.7 percent operating margin during the year, which represents a vast improvement over the -2.5 percent margin posted during the August to December stretch in 2017.
PSA purchased the Opel and Vauxhall brands from GM in August 2017 for $2.6 billion. Under the leadership of chairman Carlos Tavares, PSA vowed to return the struggling European division to profitability.
"We are witnessing the birth of a true European champion today,” Tavares said at the time of the sale. "We will assist Opel and Vauxhall's return to profitability and aim to set new industry benchmarks together. We will unleash the power of these iconic brands and the huge potential of its existing talents.”
PSA is aiming for Opel to have a 6 percent operating margin by 2026, but the company is on track to achieve that goal well ahead of schedule.