Opel/Vauxhall says its formal integration today (1 August) into the PSA stable will trigger concrete moves towards purchasing synergies now it can formally discuss them with its previous competitor.
PSA Group has unveiled extremely ambitious synergy savings from its acquisition of Opel/Vauxhall from General Motors of EUR1.7bn (US$2bn), through the purchasing, manufacturing and R&D sectors, although the supply chain reporting remains, for the time being at least, separate.
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To that end Opel/Vauxhall has secured the services of Michelle Wen, formerly Group Supply Chain Management Network Director at Vodafone Procurement as Opel VP, Purchasing and Supply chain, replacing Katherine Worthen.
The automaker has already outlined a performance plan to be presented in 100 days: to generate a positive operational free cash flow by 2020 as well as an operating margin of 2% by 2020 and 6% by 2026.
“Under the new ownership, today is the first day we are allowed to share information because until yesterday we were competitors [with PSA],” an Opel spokesman told just-auto from its German headquarters in Rüsselsheim.
“This [synergies], is exactly the questions we are now starting to address, but it is too early to announce we have changes in the organisational structure.”
PSA was at pains to stress to just-auto that Opel/Vauxhall supply chain management would be a separate entity, with the French automaker’s own Supply Chain and Manufacturing director, Yann Vincent, continuing in his role, although the Anglo-German division did concede there would be a closer use of structure between the two operations.
“Opel will be not be independent, but our own company with a single management and she [Michelle Wen] will be responsible for purchasing within the Opel organisation,” added the Opel/Vauxhall spokesman.
“There will be an alignment and cooperation with PSA, but she is part of the Opel management – it is an Opel position. “There is no specific [detail on EUR1.7bn savings] yet, but we expect to work really hard to achieve the synergies as soon as possible to make 2% [operating margin] by 2020; that is the key target.
“We will do everything to realise [this] and return to profitability by 2020. [Wen’s] Reporting lines – there is nothing more we can add at the moment – today is day one and more details will follow in the coming weeks.”
Market share of the enlarged PSA is now around 17% in Europe making it the Continent’s second largest carmaker with first or second place in main countries.
