PSA Group may have bought the loss-making Opel off GM but this doesn’t mean that the French company isn’t aware of the financial situation of the German brand.
Carlos Tavares, CEO of PSA, said to shareholders of the company that he expects Opel to lose more money in 2017, according to Reuters.
“A certain number of good achievements have been made under General Motors’ leadership,” Tavares said. “But we must recognize that the losses are real and probably will be again in 2017.”
Back in March, PSA agreed to acquire Opel and its UK-based Vauxhall unit from GM, with the deal valued at 2.2 billion euros ($2.4 billion).
Merging Opel with PSA will create the second-biggest car company in Europe, with Volkswagen Group remaining the biggest in the region. PSA shareholders also approved the issue of share warrants forming part of the payment to GM for Opel.
These share warrants were valued at 670 million euros when the deal was struck and will maintain a financial incentive for the continued cooperation between GM and PSA.
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