Opel-Vauxhall reports first profit in almost two decades

Last time struggling car manufacturer was in the black was 1999

PSA Group bought the Vauxhall brand last year as part of its acquisition of General Motors' loss-making European arm (Vauxhall)

Opel-Vauxhall has registered its first profit in almost two decades under the new ownership of France’s PSA Group, the maker of Peugeot.

Opel-Vauxhall made €502m (£447m) operating profit in the six months of the year on revenues of €10bn, the first time the company has been in the black since 1999.

The numbers mark a turnaround from a €257m loss in 2016, the last full year when the company was under General Motors’ ownership.

​PSA said overall group sales were up 38.1 per cent after it shifted a record 2.2 million vehicles, helped by the launching of 13 new models.

The results will be welcomed by around 30,000 people who work across the Vauxhall brand in the UK, including those at dealerships who aren’t directly employed by the company.

Vauxhall employs around 1,100 staff manufacture the Vauxhall Astra at its factory in Ellesmere Port, Cheshire, and 1,276 people at another factory in Luton which produces the Vauxhall Vivaro van.

In January, Vauxhall said it would slash 250 jobs at Ellesmere, just months after saying it would cut 400 staff at the site.

Three months later it revealed plans to cut back its dealership network amid falling UK car sales and changing consumer behaviour.

The company said it would terminate contracts with all of its 326 dealerships and renegotiate them in order to make its network more profitable. Opel is carrying out a similar exercise across the continent.

PSA became Europe’s second-largest car manufacturer last year when it agreed to buy GM’s loss-making European arm, which included Vauxhall.

Group PSA chairman Carlos Tavares said: “Opel-Vauxhall teams start to deliver good results to build the New Opel Vauxhall and are eager to unleash further potential.

“Our agility and strong focus on execution remain a strong asset to reach our targets.”