All Vauxhall cars to be electrified by 2024 as part of its PACE! plan
News
9 Nov 2017
Opel/Vauxhall is aiming to become a European CO2 leader with its new PACE! strategy for a sustainable future.
By 2024, all European passenger carlines are to be electrified – offering a pure battery electric propulsion or plug-in hybrid version alongside efficient internal combustion engines.
By 2020, Opel/Vauxhall is expected to have four electrified cars on the market, including the Grandland X PHEV and the next generation Corsa as a fully electric vehicle.
The company will enhance its competitiveness by 2020 e.g. by reducing costs by €700 per car.
Efficiency of marketing expenses aims to be improved by more than 10 per cent, also.
Overall efficiencies are expected to be increased by reducing complexity across all functions with a ratio G&A/revenue moving from 5.6 per cent to 4.7 per cent and an objective to bring the company towards industry benchmark in terms of wage cost/revenue ratio.
Optimising R&D and CapEx at 7-8 per cent of automotive revenue, manufacturing and administration processes by 2020 and releasing working capital of €1.2 billion by 2022 will also contribute to seizing synergies.
Improved competitiveness of the manufacturing plants will lead to new vehicle allocations that will provide a better utilisation rate for the next decade.
The two Groupe PSA platforms CMP and EMP2 will be localised in all Opel/Vauxhall plants.
To start with, an EMP2-based SUV is planned for Eisenach in 2019; and an EMP2-based D-segment vehicle is coming to Rüsselsheim.
The allocation of new powertrains in Opel/Vauxhall manufacturing sites will accompany the shift from GM to Groupe PSA engines and transmissions.
Opel CEO Michael Lohscheller, said: “PACE! will unleash our full potential. This plan is paramount for the company, to protect our employees against headwinds and turn Opel/Vauxhall into a sustainable, profitable, electrified, and global company.
“Our future will be secured and we will contribute with German excellence to the Groupe PSA development. The implementation has already started with all teams eager to achieve the objectives.”
