French automaker PSA Group has announced that it has completed the purchase of Opel and Vauxhall brands for 2.2 billion Euros (Approximately Rs 16,817 crore).
PSA Group also owns the Citroen, Peugeot and DS brands. With the acquisition of General Motors subsidiaries, PSA Group becomes the second largest European car manufacturer with a market share of 17 percent.
PSA also confirmed that Opel and Vauxhall would present a new plan in 100 days to generate positive operational free cash flow by 2020. The company also stated that four new members would join Opel leadership team headed by CEO Michael Lohscheller.
The purchase includes Opel and Vauxhall's six assembly and five component production facilities, one engineering centre and 40,000 employees. General Motors will retain one diesel engine R&D centre in Italy. The deal also includes GM Financial's European operation.
Chairman of the Managing Board of PSA Group, Carlos Tavares said, "We are embarking today with Opel and Vauxhall on a new stage in Groupe PSA's development. This project became a reality with a few months only, thanks to the outstanding work of the teams and I want to thank them warmly."
He added, "We will grasp this opportunity to build on one another's strengths and to attract new customers, thanks to the implementation of the performance plan that Opel and Vauxhall will implement."
With the purchase of Opel and Vauxhall, PSA Group becomes second largest European automaker behind Volkswagen. With five brands under its belt, the company will further expand its reach in Europe.