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Published by:
Ivey Publishing (2018)
Version:
2018-10-05
Revision date:
16-Nov-2018
Length:
15 pages
Data source:
Published sources

Abstract

In 2017, the French automaker Groupe PSA (PSA) agreed to buy loss-making Opel/Vauxhall units from General Motors Company. PSA had just recovered one year earlier from losses it had sustained since the global financial crisis. With the recovery, PSA had launched a new strategic plan with aggressive goals for sustainable profitable growth. However, PSA's sales were continuing to drop in the important Chinese market due to fierce competition, and the newly acquired units were still making losses. The use of electric cars was on the rise, and the European Commission had proposed a reduction in carbon dioxide emissions. PSA was planning to re-enter the United States, and in Britain, it was facing ambiguous Brexit negotiations, raising concerns about increased costs with importing and exporting parts and finished vehicles. In light of all of these challenges, how could PSA still reach its aggressive goals for sustainable growth?

Topics

Merger and acquisition; Turnaround; Corporate restructuring; Industry consolidation; Brexit; European Union; Automotive industry; General management/strategy; Entrepreneurship; International
Locations:
Industry:
Size:
Large
Other setting(s):
2018

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