William Maley

Ever since PSA Group took ownership of Opel and Vauxhall back in spring, many were wondering what the French automaker had in store. Today at a press conference at Opel's headquarters, Opel CEO Michael Lohscheller unveiled the turnaround called PACE. Here is a summary of PACE, Return Opel and Vauxhall to profit by 2020 Lowering costs on each car built by €700 (about $813) Committed to keeping Vauxhall as a brand for Great Britain Entering 20 new markets by 2022, with Brazil and China topping the list Accelerating the transition from General Motors to PSA Group platforms (originally was planned to finish by 2027, now plan to finish by 2024). This will reduce the number of platforms Opel/Vauxhall use from nine to two. Powertrain families will also decrease from ten to four Nine new models by 2020. This begins with a new Combo van next year and Corsa subcompact in 2019 Launching four electrified models by 2020, with an electrified option being available for each model by 2024 According to Lohscheller, the existing product strategy would not meet the upcoming CO2 targets coming into effect. Thus the decision was made to move up plans for electrification Opel's technical center in Ruesselsheim will engineer all-new Opel/Vauxhall vehicles to have them stand out from their Citroen/DS/Peugeot brethren Ruesselheim will also become a global competence center for PSA, building up expertise in various areas such as autonomous driving and fuel cells Pledging to avoid closing down factories or forced layoffs "The necessary and sustainable reduction of labour costs shall be reached with thoughtful measures such as innovative working time concepts, voluntary programs or early retirement schemes,” the company said in a statement. “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,” said Lohscheller in a statement. But will it be enough? As Reuters noted, shares in PSA Group dropped 2.2 percent to €19.68 (about $22.65) after Carlos Tavares said Opel's financial health has been getting worse as PACE! was being drawn up. “The situation gets worse by the day,” Travares said, without going into detail. Source: Autocar, Car, Reuters, Opel Press Release is on Page 2 Opel/Vauxhall Go Profitable, Electric and Global with PACE! Return to profitability by 2020: 2% automotive recurring operating margin, positive operational free cash flow[1] Lower financial break-even point to 800,000 vehicles Electrification and CO2 leadership: All passenger carlines to be electrified by 2024 Improve efficiency towards benchmark levels for manufacturing and logistics cost as well as for wage cost/revenue-ratio Intention to maintain and modernise all plants and to refrain from forced redundancies R&D centre in Rüsselsheim to become a global competence centre for Groupe PSA Enlarge commercial scope: Leverage Opel brand for overseas export opportunities and foster growth of Opel/Vauxhall LCV business PACE! execution to immediately unleash Opel/Vauxhall performance and pave the way to a sustainable future Rüsselsheim. Michael Lohscheller, CEO of Opel Automobile GmbH, today announced the strategic plan PACE! to restore financial fundamentals and enhance sustainable competitiveness and growth. All PACE! initiatives will contribute to the goals of generating a positive operational free cash flow as well as a recurring operating margin for the auto division of 2% in a first phase by 2020 and of 6% by 2026. Combining strengths will unleash annual synergies on Groupe PSA level of €1.1 billion by 2020 and €1.7 billion by 2026. All actions will contribute to a lower financial break-even point for Opel/Vauxhall of 800,000 vehicles, creating a profitable business model whatever the headwinds may be. Having full access to Groupe PSA technologies, Opel/Vauxhall will become a European CO2 leader. By 2024, all European passenger carlines will be electrified – offering a pure battery electric propulsion or plug-in hybrid version alongside efficient internal combustion engines. By 2020, Opel/Vauxhall will have four electrified carlines 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 will be improved by more than 10%. Overall efficiencies will be increased by reducing complexity across all functions with a ratio G&A/revenue moving from 5.6% to 4.7% 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% 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. “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,” said Opel CEO Michael Lohscheller. The plan is designed with the clear intention to maintain all plants and refrain from forced redundancies in Europe. The necessary and sustainable reduction of labour costs shall be reached with thoughtful measures such as innovative working time concepts, voluntary programs or early retirement schemes. All new Opel/Vauxhall vehicles will be engineered in Rüsselsheim, which will be transformed into a global competence centre for the whole Groupe PSA. First areas of expertise are identified, e.g. fuel cells, certain automated driving technologies and driver assistance developments. This will further guarantee German engineering quality and affordable innovations. Altogether, the number of platforms Opel/Vauxhall uses for its passenger cars will be reduced from currently 9 to 2 by 2024. Furthermore, the powertrain families will be optimised from currently 10 to 4. “Aligning architecture and powertrain families will substantially reduce development and production complexity, thus allowing scale effects and synergies, contributing to overall profitability,” said Lohscheller. Opel/Vauxhall will switch to efficient and flexible Groupe PSA vehicle architectures faster than originally expected. From 2024 onwards, all Opel/Vauxhall passenger car models will be based on joint Groupe PSA architectures. Next to come are the Combo in 2018 and the next generation of the bestselling Corsa in 2019. This course will be steadily continued with one major launch per year. Counting every body style, Opel/Vauxhall will launch 9 new models by 2020. This line-up will enable to increase the pricing power of Opel/Vauxhall brands and reduce the gap against benchmark by four points. Sales growth of the further profiled and strengthened Opel/Vauxhall brands will be supported by initiatives like the start of even more attractive financial offerings as well as full service leasing offers via the Financial Services of Opel and Vauxhall. Furthermore, Opel will enter more than 20 new export markets by 2022. Beyond that, Opel will explore global midterm overseas profitable export opportunities. To foster growth in the financially attractive light commercial vehicle (LCV) business, Opel/Vauxhall will launch new models and enter new markets with the clear goal to increase its LCV sales by 25% by 2020 against 2017. “PACE! has been designed by Opel/Vauxhall for the benefit of our employees as an immediate performance booster,” said Lohscheller. View full article

With Lincoln beginning to roll out an all-new Navigator, Cadillac is trying to sway current Lincoln owners with a new offer on the Escalade. Bloomberg obtained a memo sent to dealers that reveals a $5,000 discount on the Escalade for any owner of a Lincoln model from 1999 to the current model year. GM spokesman Jim Cain confirmed the authenticity of the memo. This beginning of an offensive by Cadillac to keep the Escalade ahead of the new Navigator. Ford is also rolling out a new Expedition which is expected to steal some of the huge market share GM currently has in the segment. The deal is available if you decide to lease or purchase a new Escalade, and can be combined with other offers. “I don’t know that this will hurt their launch. But it is a way for Lincoln customers to step up into something more meaningfully luxurious,” said Cain. Throwing some shade at Lincoln might not be the wisest idea. At the moment, a redesign for the Escalade isn't expected till 2020. Plus, we think the Navigator blows the Escalade out of the water when it comes to the interior. We can't say which one is the better driving model till we get some drive time in both. Source: Bloomberg View full article

It is no secret that Chevrolet will be debuting a new Corvette ZR1. Numerous spy shots have revealed Chevrolet is going all out with a large rear wing, larger intakes, and distinctly shaped hood. We now have gotten our first look at the new ZR1 thanks to a leak. Corvette Blogger got their hands on a leaked image of Car and Driver's December issue which has the Corvette ZR1 front and center. The model matches up perfectly with spy photos with the various aero bits and large air intakes. The cover also reveals the ZR1 will be packing 750 horsepower, but we don't know what engine will be providing that power (our guess is a supercharged V8). Corvette Blogger also revealed that the ZR1 will likely debut in Dubai. A reader living in the UAE sent Corvette Blogger an invitation for a special celebratory event to mark the Corvette's 65th birthday on November 12th. A couple of outlets have confirmed this event by saying they will be going. After the cover leaked out, Chevrolet released a teaser video of the new Corvette with the November 12th date. Source: CorvetteBlogger, Chevrolet (Author's Note: At the time of this writing, CorvetteBlogger is currently down. We'll keep you posted when it goes back up). View full article

Currently, Buick only offers their upscale Avenir trim on only the Enclave crossover. But that will be changing in the coming weeks as the brand has announced the 2018 LaCrosse Avenir. The LaCrosse Avenir stands out from its brethren with new mesh grille inserts, chrome "wings", 19-inch wheels (20-inch wheels are optional), and Avenir badging. Inside, Buick went all out by using chestnut-brown leather upholstery, embroidered headrests, and special sill plates. Like the Enclave Avenir, the LaCrosse Avenir comes fully loaded with a Bose audio system, panoramic moonroof, and the 3.6L V6 with 310 horsepower. Optional equipment includes all-wheel drive, a suite of active safety equipment, and Dynamic Drive Package. Pricing will be announced closer to the LaCrosse Avenir's launch. Source: Buick Press Release is on Page 2 Buick LaCrosse Avenir Makes World Debut Buick’s highest expression of luxury expands to flagship sedan LOS ANGELES ― With the arrival of the 2018 LaCrosse Avenir, Buick’s new sub-brand expands its offerings and provides customers a way to experience the highest expression of Buick luxury, regardless of whether they’re shopping for a car or SUV. First introduced with the 2018 Enclave that went on sale in October, Avenir features unique styling cues, an extensive set of standard features and exclusive premium materials for customers who want more. “Nine out of ten LaCrosse buyers are choosing one of the top two trim levels — customers are signaling they want more from Buick,” said Duncan Aldred, vice president of Global Buick and GMC. “With even more content and an elegant look, Avenir adds a unique name and appearance for those who want the best of our attainable luxury.” Like the Enclave Avenir, the LaCrosse Avenir’s design details were channeled from our award-winning concept cars for a more dramatic look, expressed through a unique three-dimensional mesh upper and lower grille paired with chrome wings. Avenir script badging on the front doors and exclusive 19-inch Pearl Nickel or available 20-inch Midnight Silver wheels create a commanding road presence and complement the LaCrosse’s timeless design. “Exterior styling is very important to LaCrosse buyers, and its sculpted beauty withstands passing trends,” says Bob Boniface, global director of Buick Exterior Design. “For Avenir, we focused on maintaining the timelessness of the LaCrosse, while giving these customers subtle and tasteful details that elevate this car to a new level.” Inside, Avenir-exclusive details include a Chestnut interior color theme, embroidered first-row headrests and Avenir-scripted sill plates. Features available on other LaCrosse models come standard on the Avenir, including a powerful 310-horsepower V-6, nine-speed automatic transmission, navigation and Bose Centerpoint Surround Sound premium audio, as well as a panoramic moonroof. Additional available features include Ebony interior, Intelligent Twin-Clutch AWD, Dynamic Drive Package featuring continuous variable real-time dampening control and a suite of advanced safety features. LaCrosse Avenir will arrive at dealers in early 2018. View full article

If you want a Range Rover Evoque Coupe, you might want to snap up a 2017 model as soon as possible. Motor Authority reports that Land Rover will stop selling the Evoque Coupe in the U.S. at the end of this year. The reason given was due to slow sales. Surprisingly, Motor Authority notes that the Evoque Convertible outsells the coupe. Last month, Land Rover announced some changes to the 2018 Evoque lineup with the big news being an all-new turbocharged 2.0L four-cylinder. The new engine produces either 237 horsepower and 251 pound-feet of torque or 286 horsepower and 295 pound-feet of torque. Source: Motor Authority View full article

Not even entry-level crossovers?

A fresh stack of spy shots of the upcoming 2019 Chevrolet Silverado has arrived and we have gotten our first look at the interior. The picture reveals that the blocky dash design of the current truck is sticking around. The center stack design is similar to what you'll find in the GMC Acadia. It appears this mule is running a new version of Chevrolet's MyLink system with a new status bar along the bottom. We also got some new clues on the 2019 Silverado's exterior. It appears Chevrolet is keeping the blocky profile shape. The front end gets new headlights with LEDs and a revised bumper. We still don't know much about powertrains for the 2019 Silverado except that a 10-speed automatic that was jointly developed with Ford will be showing up. Source: Motor Authority View full article

On Thursday, Opel CEO Michael Lohscheller will be presenting a new restructuring plan for its future under the PSA Group umbrella. Thanks a report from German newspaper Frankfurter Allgemeine Zeitung, we have some idea of what this plan entails. According to the paper, Opel will be cutting down on the models it offers and begin to focus on high-margin segments. The brand will also be tasked with developing technology for partial and complete electrification of all PSA Group models. To pull this off, Opel’s Rüsselsheim tech center will become the central point for the development of this tech. Other parts of the plan outlined in Frankfurter Allgemeine's report include, Combining the purchasing activities of the two companies Launching Opel into new markets (this was considered to be too taboo for GM) Cut labor costs Reduce the amount of discounting for new vehicles Future models to use platforms, engines, and transmissions from PSA Source: Frankfurter Allgemeine Zeitung, Automotive News Europe (Subscription Required) View full article