Experts at cap hpi consulting say a combined PSA and Opel operation will enhance the company’s ability to innovate and bring big steps forward in vehicle connectivity and powertrain. 

Matt Freeman, managing consultant, cap hpi consulting said: “With a deal of this size there will undoubtedly be challenges. However, the real potential benefits of this deal will come from the longer-term consolidation of the two businesses. While efficiencies will be found from the better use of plant capacity to a consolidation of the supplier base, it will be the integration of model development programmes around common component sets that drives real change. 

“The greater scale the combined PSA-Opel will have for technology investment will see a step change in vehicle development, which requires not only investment in new powertrain technology, but also the development of a wind-down strategy for internal combustion engines.

“Better scale will also create a better negotiating position when dealing with technology providers like Apple and Microsoft. Some questions remain. Will a combined PSA-Opel pursue a global strategy or be Europe-focused? Apart from DS, there is no premium brand in the combined group with EU market increasingly dominated by premium brands, how will PSA-Opel deal with this?”