A major acquisition may generate more mergers in automotive
Karin Olander | Dagens Industri | 7 March 2017
Read the full article in Swedish
PA automotive expert, Thomas Goettle is quoted in an article in Dagens Industri discussing the effect that General Motors’ sale of Opel may have on the automotive industry.
The article highlights how the acquisition of Opel by PSA could lead to more mergers and acquisitions in the industry. According to PSA’s CEO, Carlos Tavares, the full effect of the takeover will not be seen until 2026. And when pressed, Carlos said there are no plans to close down factories.
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Commenting on the current situation, Thomas says: “Because German trade unions are so strong and influential, PSA needs them for a successful merger. But there is a risk to the factories in the UK.”
When thinking about the future of Peugeot, Citroen and Opel/Vauxhall, Thomas says: “French cars are strong in countries where Opel is weak and vice versa. It’s therefore important for them to keep separate brands or they will risk losing market share.”
“Everyone is trying to become bigger and stronger to meet the costs of major trends and requirements related to lowering carbon dioxide emission rates, shared ownership, electrification and self-driving cars. Unless Fiat meets these challenges, there are other players in that market that will succeed,” Thomas concludes.