Inefficiencies cited as former GM subsidiary may see budgets and jobs slashed.
Vauxhall/Opel’s future has been uncertain since its sale from General Motors to the PSA Group earlier in 2017, with job cuts already announced at Vauxhall's Ellesmere Port production facility and worries about whether the next Vauxhall Astra will even be built in the UK.
During an interview with German newspaper Die Welt, PSA Group CEO Carlos Tavares noted the former GM-owned company uses 50 percent more cash than its new French parent company. As well as that he noted that 'things are out of proportion at Opel, they consume too much energy, processes are not efficient enough.' This, it is believed, hints heavily at cuts to come.
Analysists have noted that the process of integrating Vauxhall/Opel into PSA’s existing business architecture – the French company is primarily formed of Peugeot and Citroen – will lead to job cuts.
PSA has already started trimming the business by slicing 400 jobs from Vauxhall’s factory at Ellesmere Port plant and Tavares has already put other factories on notice that he will be examining things very closely in the coming months to ensure that he's getting the best value for money everywhere.
Future products will use PSA underpinnings, rather than GM engineering. While this may help cut the apparently bloating costs, it might also highlight just why a Vauxhall costs more to make than a Peugeot…