Opel/Vauxhall, which was recently acquired by Groupe PSA from GM, has pledged to return to profitability in just over two years.
The manufacturer’s roadmap, named PACE!, aims for a recurring operating margin of 2% by 2020, which would raise to 6% by 2026.
The target is to cut costs by €700 (£622) per car, releasing €1.2bn in working capital by and lowering the break-even point to 800,000 vehicles sold annually.
Opel/Vauxhall also plans to give fully electric and hybrid options on the whole range, with the first four electrified model lines out by 2020.
It stated it intends to “refrain from forced redundancies” and closure of any plants in Europe, instead focusing on shift patterns, voluntary programs and early retirement schemes. Engineering of Opel/Vauxhall vehicles will be conducted in Opel’s HQ in Rüsselsheim.
Opel chief executive officer, Michael Lohscheller, said: “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. Our future will be secured and we will contribute with German excellence to the Groupe PSA development.”
In a conference on Thursday, Groupe PSA’s chief executive Carlos Tavares warned that should Opel fail at turning around its balance sheets by the set date, there would be “very serious for the company and of course for the employees.”