PSA to reportedly cut Opel models and check discounts

PSA Group prepares to cut numerous models and curb discounts at its Opel division, Frankfurter Allgemeine Zeitung reported on Monday, without pointing out the source of the details.

The automaker is in the process of incorporating Opel after buying it previously this year from General Motors, a project which experts say will result in sweeping job cuts.

The CEOs of PSA and Opel will on Thursday provide a turn-around plan for the automaker to return it to success over the next 3 years.

Under the plan, PSA CEO Carlos Tavares seeks to control Opel’s practice of selling its vehicles at huge discounts, for example by through so-called self-registrations, Frankfurter Allgemeine stated, without being more particular.

Opel’s headquarters in Ruesselsheim near Frankfurt will become a center for engineering and electrification at the German automaker, the newspaper stated.

PSA has already stated before that it will use its own technology and vehicle platforms for future Opel models to slash costs and lower emissions.

Emerging information of the PSA-Opel recovery program strengthen the impression that PSA CEO Tavares plans to repeat a similar cost-cutting deal implemented years earlier at the French group which at the time was wrestling with an extended European auto-market downturn.