PSA Profit Hits Record as Tavares Gets Going on Opel Turnaround
- Margin at Peugeot, Citroen, DS operation reaches 7.3%
- CEO is ‘bullish’ that new unit’s revival efforts will succeed
An Opel AG Grandland X automobile.
Photographer: Krisztian Bocsi/BloombergThis article is for subscribers only.
PSA Group reported record profit for 2017 as the French carmaker was able to limit the losses at its newly acquired Opel division, a sign that Chief Executive Officer Carlos Tavares is making progress toward a turnaround.
The shares rose to their highest in four months after the company said its operating margin had remained steady for the year, despite the purchase of the money-losing Opel and Vauxhall brands from General Motors Co. in August. Tavares has been busy integrating the German and British nameplates into the overall operation that includes PSA’s traditional Peugeot, Citroen and DS marques, where earnings have been on an upswing.