PSA considers phasing out Opel engines after acquisition
PSA may replace Opel and Vauxhall engines with its own units, citing efficiency and licensing costs, following the group's 2017 takeover of the German and British brands.
PSA is reviewing the future of Opel and Vauxhall engine development, with the French group’s leadership questioning the efficiency of powertrains designed by its newly acquired German and British subsidiaries. The move follows PSA’s 2017 purchase of Opel and Vauxhall from General Motors, which made PSA the second-largest carmaker in Europe.
According to PSA development chief Gilles Le Borgne, the company plans to introduce PSA platforms and engines across the Opel and Vauxhall ranges. He stated this transition would not be immediate, but would take place over several years. The decision on whether to continue developing Opel’s own engines has not yet been finalised, but Le Borgne indicated that only those engines offering substantial efficiency improvements would be retained.
One factor driving the review is PSA’s desire to stop paying licensing fees to General Motors for existing Opel powertrains. PSA’s own petrol and diesel engines, already used in Peugeot and Citroën models, are seen as more efficient to produce at scale. Centralising engine development would also simplify manufacturing and reduce costs across the enlarged group.
Potential impact on jobs and plants
A shift away from Opel-developed engines could affect thousands of jobs at Opel’s engineering and manufacturing sites, particularly at Rüsselsheim where much of the company’s powertrain work is based. PSA has not announced any job cuts, but a move to consolidate engine production at PSA’s own facilities would likely reduce the need for separate Opel engine lines.
The gradual switch to PSA platforms and powertrains will also mean that future Opel and Vauxhall models will increasingly share architecture and components with Peugeot and Citroën vehicles. This approach is intended to improve group-wide efficiency but could further dilute the engineering independence of Opel and Vauxhall.
