MADRID – Some Opel and Vauxhall dealer networks in Europe and the UK, respectively, will be eliminated after 2020 under a restructuring plan being implemented by new owner PSA Group.

The French automaker, which bought Opel and Vauxhall from General Motors last year, has about 1,600 Opel dealers in Europe, including 400 in Germany and 100 on the Iberian Peninsula, and 326 Vauxhall retailers in the UK.

PSA’s PACE strategic plan has set a 2% profit margin as an immediate goal for Opel/Vauxhall. This is to be achieved partly by reducing the number of dealers to curtail internal competition and make those who remain more profitable.

The 67 Spanish and 33 Portuguese Opel dealers have been notified their contracts will be canceled in 2020. After PSA has decided which ones to drop, the rest will be immediately renewed.