Peugeot boss wants to ‘unleash Vauxhall potential’

March 7, 2017 9:52 am Published by

Peugeot boss wants to ‘unleash Vauxhall potential’

Vauxhall plantImage copyright

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Vauxhall’s plant in Ellesmere Port has exported to Europe in the past.

Peugeot chief executive Carlos Tavares wants to “unleash [the] potential” of Opel and Vauxhall after his company’s takeover of the brands.

“We are going to open the gates” to exporting outside Europe he said in an interview with the BBC.

Mr Tavares downplayed suggestions that plants would have to close after Peugeot buys General Motors Europe.

Instead he said improved performance would make the company more competitive.

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.

But Mr Tavares offered some reassurance, suggesting that both PSA and Vauxhall were operating at high levels of capacity, and that demand overseas would justify maintaining production.

“We are not talking about shutting down plants. Why? Because if you look at the situation, look at the PSA Group today, our capacity utilisation rate is 98%.”

He said Vauxhall was operating at 82% capacity.

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Carlos Tavares believes the “performance” is the answer

“For many, many, years Opel Vauxhall could not export cars outside of Europe, that was something that General Motors didn’t want them to do. PSA is going to unleash this potential,” he said.

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Performance not protection

He also indicated that his priority was not negotiating with governments for favourable tax treatment.

“What is striking in Europe… is that everybody is asking for protection.”

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“The only honest answer for protection is performance, if you increase your level of performance, you become the best, if you become the best there is no risk,” he added.

“We can become better by sharing the best practices, having the best benchmarks inside the company and if we are better, with the export opportunities we have, we can fully use our manufacturing footprint.”

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This post was written by FSB News