General Motors-PSA Group deal: No plans to shut Plant, Cut Jobs — Peugeot Boss

Following the recent Peugeot Opel Merger, there has been fears of job loss if the owners decides to close some of the General Motors operated car plants. However, when Carlos Tavares, the chief executive officer (CEO) of Peugeot parent PSA group was asked whether his plan would involve job cuts, the CEO said it was not the first option available to the struggling German marque’s new owner.

“Since I took the helm of PSA we didn’t shut down any plant by PSA. This is not how we address the problem. I think shutting down plants is a simplistic way of looking at things. Before we reach that kind of dramatic situation, we have tonnes of things we can do to improve the efficiency of the plants,” Tavares asserted, going on to list online developments, internal logistics, reworking of existing plans, energy savings and “many, many” other ideas to improve efficiency.

Sounding a confident tone over the willingness of Opel’s management and workers to fall into line with PSA’s plans, Tavares spoke to how he proposed transferring the experience from Peugeot’s four-year recovery.

“We want to give them all the good ideas, the best practices that we have implemented in our own plans and I’m sure they are bright, well-educated and they will understand it is in their best interests to ‘copy paste’ everything they can from everything we have done so far,” he offered.

The CEO said he instead wants to “unleash [their] potential” by exporting the cars outside Europe, he said in an interview with the BBC.

The brands’ previous owner, General Motors, did not market Opel or Vauxhall cars outside Europe.

Mr Tavares said merging with Peugeot would make Vauxhall more efficient.

PSA, Peugeot’s parent company, has agreed to buy the European operations of General Motors, prompting concern over the future of its UK-based Vauxhall operations in Ellesmere Port and Luton.

Supply chain

Mr Tavares painted a positive picture of the future for the merged company, suggesting sharing assets and expertise and introducing new internal benchmarking at Opel-Vauxhall would improve performance.

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