|The Crossland er...crossing land|
Since PSA took over Opel/Vauxhall, changes have been implemented to get the company on a sound footing. In the UK, Luton has been given the green light to make new light commercial models, but for some other plants the uncertainty continues. Germany's chancellor has just stated she expected PSA to honour its commitments made during the 2017 takeover.
The problem is the company has been a loss maker for some time and PSA can not afford for that to continue. Production volume was down 7% in 2017 as the company rationalises its sales focus. That makes plant capacity an issue.
Looking over the sales by model, the top three accounted for 60% of the total, down from 64% in 2016. The new Crossland and Grandland models look promising but many models were down as the changes are implemented. Chasing volume is all very well but at the end of the day business is about profit and if that can be achieved quickly, then PSA will be both relieved and satisfied.
Data source: Opel.
|The Grandland model|