Peugeot maker PSA finalizes takeover of GM's Opel, Vauxhall

Carlos Tavares, left, CEO of PSA Peugeot Citroen, Karl-Thomas Neumann, center, CEO of Opel Group and President of General Motors Dan Ammann, right, shake hands during the press day at the 87th Geneva International Motor Show in Geneva, Switzerland, March 7, 2017. (Martial Trezzini/Keystone via AP)

PARIS -- The maker of Peugeot and Citroen cars has finalized its $2.5 billion takeover of General Motors' European brands Opel and Vauxhall, and named new management to chart an attempted turnaround plan.

France-based PSA Group said in a statement Tuesday that the new executives would present the plan in 100 days. Opel's chief said it is aiming for a return to profit in 2020 and reach a 6 per cent operating profit margin by 2026, after years of losses.

The carmakers hope to save up to 1.7 billion euros annually thanks to the takeover, notably on purchasing and research and development.

PSA Chairman Carlos Tavares insisted that "Opel will remain German, and Vauxhall will remain British."

PSA becomes Europe's No. 2 carmaker with the closing of the deal, behind Volkswagen.