PSA Group’s acquisition of Opel from General Motors apparently has a lot to do with going global, apparently. In a recent interview with German newspaper Welt am Sonntag family heir and shareholder Jean-Philippe Peugeot said Opel will advance plans for global expansion, reports Automotive News.
Last month PSA Group acquired Opel/Vauxhall from GM in a deal valued at $2.3 billion. The deal provides PSA Group additional scale, by nearly doubling their annual vehicle sales overnight in Europe. The added scale is imperative for the combined company to pursue global expansion plans.
“This will allow the group to conquer the rest of the world step by step. This remains an important goal for PSA,” Jean-Philippe Peugeot said in the interview.
Peugeot went on to explain that every large automaker has at least one market in which they sell 3 million. The acquisition of Opel enables PSA Group to hit that 3 million figure and sets the stage for global expansion.
Currently the Peugeot family controls 22.19 percent of PSA Group’s voting rights, while China’s Dongfeng Motor and the French government each have 13.68 percent stakes. Suffice to say, the Peugeot family is still largely driving the ship at PSA.
Peugeot did not elaborate on which global markets the new company aspires to grow into. The obvious answers are China and North America, but those aren’t likely to be easy markets for Opel to tap. In fact, GM tried selling Opel in China and ultimately pulled the brand from the country, while PSA isn’t allowed to sell Opel products underpinned by GM architectures in North America under the acquisition deal.