Electric cars will have to let go of their subsidy baggage in order to be successful: Opel’s Chief

Having completed the $2.2 billion acquisition of Opel and Vauxhall earlier this year, the PSA Group, like its peers, is now focusing on launching Evs in the market.

As per PSA Group’s Chief executive, Carlos Tavares, although the company will support Opel’s introduction of electric cars into the market, he has highlighted the need for it to be profitable in order to ensure its success, reported German daily, Bild am Sonntag.

“If it works and companies can be profitable that’s good. But if it does not gain acceptance in the market, then everybody: industry, employees, and politicians have a big problem,” said Tavares to the paper.

The PSA Group acquired Opel and Vauxhall for 2.2 billion earlier this year in August.

“We as PSA will make the technology available to Opel to pursue further electrification. If Opel wants to become a fully electric brand some day, we’re ok with that, providing it is profitable,” said Tavares in a joint interview with new Opel Chief Executive Michael Lohscheller.

Tavares underscored the fact that in order for electric cars to be accepted in the market, they need to be marketed without subsidies.

Asked whether Opel will be profitable in three years time, Michael Lohscheller’s the company’s new CEO said, “Opel must be and will be profitable.”

Earlier this month, auto trade weekly Automobilwoche reported that Opel’s losses had widened in the second quarter to nearly $250 million.

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