>> The timing couldn't have been better. PSA no doubt hoping a record 2016 will impress, as it seeks to buy GM's European operations. The maker of Peugeot and Citroen cars lifted automotive operating margins to 6%, from five the previous year. It'll pay its first dividend in six years, and has raised its medium term profitability goal to around 4.5%.
Strong pricing, sales of higher spec models, and cost cuts have all helped Peugeot. It's offering to work some of that magic onto struggling Opel.>> This company, I'm talking about Opel, has been making red ink for ten years. And approximately burning 1 billion Euros of cash every year.
We believe that there is opportunity to create an European car champion.>> Sources say PSA expects the deal to lead to combined sales of 5 million vehicles in 2020 to 2022 and achieve savings of up to 2 billion Euros. PSA still has to convince politicians and unions in Britain and Germany that no jobs will be lost.
It's made promises to protect factories, but some fear the supply chains could suffer.