Vauxhall will sell all-electric Corsa and make a profit by 2020


Opel will introduce at least two new cars in 2019 including the Corsa mini, with a larger SUV to follow among a total of nine models or variants promised by the following year - a more ambitious product blitz than previously announced.

PSA Group shares were down 2.4 percent to 19.66 euros at 0900 GMT on November 9.

Synergies within the group would cut costs by 700 Euros per auto in the coming years, and Opel would need to produce just 800,000 units per year to break even. PSA announced they would keep all factories, but eliminate redundancies to keep costs low. Exactly 100 days after the closing of the deal, whereby PSA took control of Opel (and British sister brand Vauxhall) from General Motors, the German vehicle maker's chief executive officer, Michael Lohscheller, has outlined how profitability can be returned to the company.

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Although the reduction may seem a little drastic, it's part of the group's PACE! initiative that aims to return Vauxhall to profitability by 2020 - a smaller range of drivetrains and platforms will enable it implement the plan. By the end of the decade there are four electrified models planned already, including a PHEV version of the Grandland X and a fully electric next generation Corsa.

"PACE! will unleash our full potential". Instead, Opel/Vauxhall will switch to flexible Groupe PSA vehicle architectures faster than originally expected. The company's engineering center in Russelsheim is also set to become a global competence center for the entire group, with German and French specialists working on everything from fuel cells, automated driving technologies, to driver assistance systems.

Overall, Opel aims to reduce the number of platforms it uses for passenger cars from nine now to two by 2024, with the number of powertrains cut by ten to four. The fact that the EMP1/CMP and EMP2 platforms were developed with GM could likely help implementmore quicklyin future models.

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The first model to roll out of a PSA-owned Opel factory will be the next Combo in 2018.

In terms of expansion, Opel plans to enter more than 20 new export markets by 2022, including the likes of Argentina and Taiwan.

'This plan is not a gimmick plan, ' Tavares said, adding that the engineering and design capabilities acquired with Opel and Vauxhall would help PSA Group as a whole achieve the ambitious goal of sharply cutting its vehicles carbon emissions as required under national and worldwide rules.

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