Peugeot: Sales, Marketing, and Financial News
02-05-2003, 10:18 PM
#1
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Peugeot: Sales, Marketing, and Financial News
AFX News Limited - February 5, 2003
LONDON (AFX) - Twelve years after exiting the US, Peugeot Citroen SA is studying the possibility of a return, the Wall Street Journal Europe reported, citing people familiar with the matter.
The company, with the help of Havas SA, is studying the possibility of reintroducing Peugeot vehicles to American drivers in perhaps three or four years, the people were quoted as saying.
PSA thinks it may be able to position selected Peugeot models as alternatives to cars from General Motors Corp's Saab or Ford Motor Co's Volvo unit, the people said, according to the report.
A PSA spokesman said the company's strategy for 2003 and 2004 currently includes no plans to return to the US, the report added.
Copyright 2003 AFX News Limited. All Rights Reserved.
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Some of the offerings in Europe currently:
LONDON (AFX) - Twelve years after exiting the US, Peugeot Citroen SA is studying the possibility of a return, the Wall Street Journal Europe reported, citing people familiar with the matter.
The company, with the help of Havas SA, is studying the possibility of reintroducing Peugeot vehicles to American drivers in perhaps three or four years, the people were quoted as saying.
PSA thinks it may be able to position selected Peugeot models as alternatives to cars from General Motors Corp's Saab or Ford Motor Co's Volvo unit, the people said, according to the report.
A PSA spokesman said the company's strategy for 2003 and 2004 currently includes no plans to return to the US, the report added.
Copyright 2003 AFX News Limited. All Rights Reserved.
-----------------------------------------------------------------------------------
Some of the offerings in Europe currently:
02-06-2003, 03:55 AM
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i don´t know if peugeot can compete in the us market. i see those cars here everyday, and while some of them look nice, i think they are just to underpowered. the 406 coupe reminds me a bit of a tl in coupe form or the old bmw 8 series.
now if audi would sell the a3 with the 3.2 v6 with about 250hp in the states. hmm...
now if audi would sell the a3 with the 3.2 v6 with about 250hp in the states. hmm...
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02-06-2003, 12:04 PM
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Originally posted by DRM600
i don´t know if peugeot can compete in the us market. i see those cars here everyday, and while some of them look nice, i think they are just to underpowered. the 406 coupe reminds me a bit of a tl in coupe form or the old bmw 8 series.
now if audi would sell the a3 with the 3.2 v6 with about 250hp in the states. hmm...
i don´t know if peugeot can compete in the us market. i see those cars here everyday, and while some of them look nice, i think they are just to underpowered. the 406 coupe reminds me a bit of a tl in coupe form or the old bmw 8 series.
now if audi would sell the a3 with the 3.2 v6 with about 250hp in the states. hmm...
03-01-2012, 03:17 AM
#11
Race Director
http://content.usatoday.com/communit...1#.T08-ZoEmzTo
General Motors will buy 7% of France's PSA Peugeot Citroen as part of an alliance to cut product development and supplier costs.
Both are struggling in the troubled European market. GM lost $747 million in Europe in 2011, the 12th-consecutive annual loss for the unit that sells the Opel and Vauxhall brands.
The companies said the alliance will save on costs through sharing and joint development of vehicle platforms and components and through a joint purchasing venture with greater price leverage over suppliers. They said they spend a combined $125 billion a year on parts.
They estimate the link-up will save them about $1 billion a year each in about five years, but say that since savings will come primarily through new vehicle programs, they'll have little in savings the first two years.
The alliance initially will focus on small and midsize cars, crossovers and MPVs and will consider developing a new platform for low-emission vehicles. The first vehicle on a common platform is expected to roll out by 2016, they said. They will continue to market the vehicles under their own brands and to compete.
"The alliance synergies in addition to our independent plans, position GM for long-term sustainable profitability in Europe," said CEO Dan Akerson said in a statement.
As part of the deal Peugeot also will raise about 1 billion euros ($1.33 billion) in additional capital through a preferred rights offering for current shareholders. It will be underwritten by a syndicate of banks and, GM noted in its release, will include an investment from the Peugeot family.
The family controls more than 46% of the company's voting rights. GM's 7% will make it the second-largest shareholder and the stake will be worth about $300 million at Peugeot's current market cap.
A statement from Philippe Varin, chairman of the managing board of PSA Peugeot Citroën said, "With the strong support of our historical shareholder (the Peugeot family) and the arrival of a new and prestigious shareholder, the whole group is mobilized to reap the full benefit."
The alliance does not address one of the key issues for both companies in Europe -- too much production capacity and overhead for their sales volumes, which have been declining. Their release specifically notes that the alliance does not affect each of their independent efforts to restructure their businesses in Europe.
The venture will be supervised by a committee with an equal number of senior executives from each. But to get done the deal will need approval by regulatory bodies and union councils in Europe.
Jefferies Analyst Peter Nesvold, in a note to clients, calls the deal "a bit of a head-scratcher" for GM and gave reasons to be skeptical:
(1) GM is already the biggest automaker in the world; scale isn't the company's challenge.
(2) Both GM and PSA very directly said there would be no plans to share capacity; as a result, this is unlikely to be a near-term fix for GM's issues in Europe.
(3) The cost savings will take several years to occur.
(4) GM is sharing 50% of the cost savings, despite the fact that it is more than 2 times the size of PSA; in fact, this was GM's biggest push-back on the Renault-Nissan proposed alliance last cycle.
(5) GM is also cutting a check to get involved, while PSA is not.
(6) Arguably, this increases complexity at GM -- while the stated goal has been to decrease it.
(7) These JVs have not worked out well for GM in the past (Nesvold pointed to others, such as GM paying $2 billion to get out of its venture with Fiat).
Both are struggling in the troubled European market. GM lost $747 million in Europe in 2011, the 12th-consecutive annual loss for the unit that sells the Opel and Vauxhall brands.
The companies said the alliance will save on costs through sharing and joint development of vehicle platforms and components and through a joint purchasing venture with greater price leverage over suppliers. They said they spend a combined $125 billion a year on parts.
They estimate the link-up will save them about $1 billion a year each in about five years, but say that since savings will come primarily through new vehicle programs, they'll have little in savings the first two years.
The alliance initially will focus on small and midsize cars, crossovers and MPVs and will consider developing a new platform for low-emission vehicles. The first vehicle on a common platform is expected to roll out by 2016, they said. They will continue to market the vehicles under their own brands and to compete.
"The alliance synergies in addition to our independent plans, position GM for long-term sustainable profitability in Europe," said CEO Dan Akerson said in a statement.
As part of the deal Peugeot also will raise about 1 billion euros ($1.33 billion) in additional capital through a preferred rights offering for current shareholders. It will be underwritten by a syndicate of banks and, GM noted in its release, will include an investment from the Peugeot family.
The family controls more than 46% of the company's voting rights. GM's 7% will make it the second-largest shareholder and the stake will be worth about $300 million at Peugeot's current market cap.
A statement from Philippe Varin, chairman of the managing board of PSA Peugeot Citroën said, "With the strong support of our historical shareholder (the Peugeot family) and the arrival of a new and prestigious shareholder, the whole group is mobilized to reap the full benefit."
The alliance does not address one of the key issues for both companies in Europe -- too much production capacity and overhead for their sales volumes, which have been declining. Their release specifically notes that the alliance does not affect each of their independent efforts to restructure their businesses in Europe.
The venture will be supervised by a committee with an equal number of senior executives from each. But to get done the deal will need approval by regulatory bodies and union councils in Europe.
Jefferies Analyst Peter Nesvold, in a note to clients, calls the deal "a bit of a head-scratcher" for GM and gave reasons to be skeptical:
(1) GM is already the biggest automaker in the world; scale isn't the company's challenge.
(2) Both GM and PSA very directly said there would be no plans to share capacity; as a result, this is unlikely to be a near-term fix for GM's issues in Europe.
(3) The cost savings will take several years to occur.
(4) GM is sharing 50% of the cost savings, despite the fact that it is more than 2 times the size of PSA; in fact, this was GM's biggest push-back on the Renault-Nissan proposed alliance last cycle.
(5) GM is also cutting a check to get involved, while PSA is not.
(6) Arguably, this increases complexity at GM -- while the stated goal has been to decrease it.
(7) These JVs have not worked out well for GM in the past (Nesvold pointed to others, such as GM paying $2 billion to get out of its venture with Fiat).
03-01-2012, 10:39 AM
#13
The sizzle in the Steak
No want.
07-01-2013, 07:55 AM
#15
Race Director
http://www.autoweek.com/article/2013...NEWS/130629845
Peugeot-Citroën's founders have offered to give up control of the automaker, trying to revive a deal with General Motors. The company is looking to GM after courting several other investors including Dongfeng Motor Group. The problem with combining Peugeot with GM's Opel group, according to Reuters, is that it would come with more factory closures. Currently the Peugeot family holds 25.4 percent of the business, commanding 38.1 percent of the voting rights.
European car sales have decreased five years in a row and they are on pace for a sixth year of decline. Peugeot spent nearly $4 billion last year, and its shares have fallen 77 percent in the past two. Peugeot has already responded by cutting 10,000 jobs, selling assets and negotiating a state guarantee for financing.
The company could join future car programs with GM's in an effort aimed at cutting costs under their existing alliance, but a full pairing was halted last year as Peugeot received a bailout from the French government.
Though Peugeot is coming along for the ride, GM needs this partnership too, according to Reuters. The General's European arm leverages technology from the Peugeot 208 subcompact and the Citroën C4 Picasso for future versions of its Opel cars.
So both brands need each other, and the French government understands that. But it would like to preserve both the plants and jobs in France that could be lost if a deal goes though.
Other officials have suggested that a government or state-owned investment could end up taking a stake in Peugeot if necessary as well.
European car sales have decreased five years in a row and they are on pace for a sixth year of decline. Peugeot spent nearly $4 billion last year, and its shares have fallen 77 percent in the past two. Peugeot has already responded by cutting 10,000 jobs, selling assets and negotiating a state guarantee for financing.
The company could join future car programs with GM's in an effort aimed at cutting costs under their existing alliance, but a full pairing was halted last year as Peugeot received a bailout from the French government.
Though Peugeot is coming along for the ride, GM needs this partnership too, according to Reuters. The General's European arm leverages technology from the Peugeot 208 subcompact and the Citroën C4 Picasso for future versions of its Opel cars.
So both brands need each other, and the French government understands that. But it would like to preserve both the plants and jobs in France that could be lost if a deal goes though.
Other officials have suggested that a government or state-owned investment could end up taking a stake in Peugeot if necessary as well.
01-24-2018, 10:31 AM
#16
Race Director
To return to the U.S. market, PSA Group is asking some Opel engineers to return to their roots.
The French automaker is making its latest products compliant with U.S. regulations as part of a 10-year plan to sell vehicles in North America, PSA CEO Carlos Tavares told a group of reporters here Thursday. The company is using Opel, a former General Motors brand based in Ruesselsheim, Germany, to take the first steps to enter the U.S.
"Our engineering teams, using some of the Ruesselsheim engineers, are making our next generation of products U.S.-compliant," Tavares said. "That work started a few months ago and has been boosted by the fact that we're now using the Ruesselsheim engineers who have been working for GM for so many years."
PSA will sell vehicles in North America by 2026, Tavares said, and is researching the U.S. consumer market to decide which brand to lead its return. As it has done in Russia and Latin America, the automaker will start with low-volume sales to ensure short-term profitability.
"Our success in Europe could lead to a very arrogant position that I want by all means to avoid," Tavares said. "Entering the U.S. will only be an upside for the value and the profitability of my company. My only focus in the U.S. is to do the right things right."To succeed in North America, PSA is starting at the engineering level, relying on engineers whose job had been to homologate U.S. vehicles for the European market.
At the same meeting with reporters, Larry Dominique, CEO of PSA North America, said the company has hired Ben Winter, formerly of Ford and Fiat Chrysler Automobiles, as its chief technical officer. He will be responsible on the U.S. side for working with the engineers in Ruesselsheim.
Other new hires include Lynn Blake, vice president of mobility. She is a former Nissan colleague of Dominique and Tavares.
Vincent Noirbent has transferred from France as vice president of corporate and product planning. Dominique described him as PSA North America's conduit into the parent company.I have toiled as a dignified and stern official at the 24 Hours of Lemons crapcan road-racing series for nearly a decade now, and I'm proud to say that Opel maintains a strong presence in the ...
Revival strategy
Opel found itself under French ownership last year after GM struggled for decades to turn a profit. Tavares said he can revive the brand using the same tactics the former Renault-Nissan Alliance executive used in the turnaround of PSA in 2013 -- tightening up manufacturing operations and giving engineers "room to breathe."
However, that extra breathing room comes with additional responsibilities. By tasking Opel engineers with the reverse process of readying European vehicles for the North American market, PSA can advance its global aspirations while developing a potential source of additional profit.
"For us, it's a great opportunity to merge their skills and their expertise to prepare the cars for the U.S. market," Tavares said.
Along with U.S. regulatory compliance, PSA is preparing for globalization with its Free2Move mobility platform, which allows customers to use multiple mobility services on one app. The app launched in the U.S. in October and hosts outside companies such as Zipcar and Car2go. PSA will add its own mobility services, including a car rental service, to the platform this year.
PSA has yet to announce a location for its North American headquarters. The company pulled its Peugeot brand out of the U.S. market in 1991.
Read more: Peugeot's US return boosted by Opel engineers acquired from GM | Autoweek
The French automaker is making its latest products compliant with U.S. regulations as part of a 10-year plan to sell vehicles in North America, PSA CEO Carlos Tavares told a group of reporters here Thursday. The company is using Opel, a former General Motors brand based in Ruesselsheim, Germany, to take the first steps to enter the U.S.
"Our engineering teams, using some of the Ruesselsheim engineers, are making our next generation of products U.S.-compliant," Tavares said. "That work started a few months ago and has been boosted by the fact that we're now using the Ruesselsheim engineers who have been working for GM for so many years."
PSA will sell vehicles in North America by 2026, Tavares said, and is researching the U.S. consumer market to decide which brand to lead its return. As it has done in Russia and Latin America, the automaker will start with low-volume sales to ensure short-term profitability.
"Our success in Europe could lead to a very arrogant position that I want by all means to avoid," Tavares said. "Entering the U.S. will only be an upside for the value and the profitability of my company. My only focus in the U.S. is to do the right things right."To succeed in North America, PSA is starting at the engineering level, relying on engineers whose job had been to homologate U.S. vehicles for the European market.
At the same meeting with reporters, Larry Dominique, CEO of PSA North America, said the company has hired Ben Winter, formerly of Ford and Fiat Chrysler Automobiles, as its chief technical officer. He will be responsible on the U.S. side for working with the engineers in Ruesselsheim.
Other new hires include Lynn Blake, vice president of mobility. She is a former Nissan colleague of Dominique and Tavares.
Vincent Noirbent has transferred from France as vice president of corporate and product planning. Dominique described him as PSA North America's conduit into the parent company.I have toiled as a dignified and stern official at the 24 Hours of Lemons crapcan road-racing series for nearly a decade now, and I'm proud to say that Opel maintains a strong presence in the ...
Revival strategy
Opel found itself under French ownership last year after GM struggled for decades to turn a profit. Tavares said he can revive the brand using the same tactics the former Renault-Nissan Alliance executive used in the turnaround of PSA in 2013 -- tightening up manufacturing operations and giving engineers "room to breathe."
However, that extra breathing room comes with additional responsibilities. By tasking Opel engineers with the reverse process of readying European vehicles for the North American market, PSA can advance its global aspirations while developing a potential source of additional profit.
"For us, it's a great opportunity to merge their skills and their expertise to prepare the cars for the U.S. market," Tavares said.
Along with U.S. regulatory compliance, PSA is preparing for globalization with its Free2Move mobility platform, which allows customers to use multiple mobility services on one app. The app launched in the U.S. in October and hosts outside companies such as Zipcar and Car2go. PSA will add its own mobility services, including a car rental service, to the platform this year.
PSA has yet to announce a location for its North American headquarters. The company pulled its Peugeot brand out of the U.S. market in 1991.
Read more: Peugeot's US return boosted by Opel engineers acquired from GM | Autoweek
01-24-2018, 10:51 AM
#17
Race Director
PSA Group will locate its North American headquarters in Atlanta, tapping the city's universities and automotive businesses to regain a foothold in the U.S.
As Automotive News first reported on Jan. 19, the French automaker has been planning to base its new business operations in the Atlanta area, and has been publicly recruiting employees for the center. PSA said the headquarters will open in February.
"Our unique needs in terms of technology, mobility innovation and car culture ultimately identified Atlanta as our perfect choice," said Larry Dominique, CEO of PSA North America, in a statement.
Atlanta has become a growing hub for automotive operations. Mercedes-Benz USA and Porsche Cars North America have relocated their headquarters to the city, and self-driving car company Waymo saidMonday it would begin testing its vehicles in the area.
PSA CEO Carlos Tavares told reporters at the Detroit auto show that the automaker would begin selling cars in the U.S. by 2026, and has begun developing vehicles to comply with national standards.
The company has launched a mobility platform, Free2Move, in the U.S., which it will use to research consumer preferences and determine the brand to lead its return to the market. Dominique said PSA would introduce its own car rental service on the platform this year.
As Automotive News first reported on Jan. 19, the French automaker has been planning to base its new business operations in the Atlanta area, and has been publicly recruiting employees for the center. PSA said the headquarters will open in February.
"Our unique needs in terms of technology, mobility innovation and car culture ultimately identified Atlanta as our perfect choice," said Larry Dominique, CEO of PSA North America, in a statement.
Atlanta has become a growing hub for automotive operations. Mercedes-Benz USA and Porsche Cars North America have relocated their headquarters to the city, and self-driving car company Waymo saidMonday it would begin testing its vehicles in the area.
PSA CEO Carlos Tavares told reporters at the Detroit auto show that the automaker would begin selling cars in the U.S. by 2026, and has begun developing vehicles to comply with national standards.
The company has launched a mobility platform, Free2Move, in the U.S., which it will use to research consumer preferences and determine the brand to lead its return to the market. Dominique said PSA would introduce its own car rental service on the platform this year.
07-24-2018, 08:30 AM
#18
https://www.wsj.com/articles/after-y...pel-1532427810
Peugeot Achieves What Long Evaded GM: a Profit at Opel 
July 24, 2018
General Motors Co. failed to make money out of Opel for years. Now Peugeot SA is showing its U.S. rival how it’s done.
Shares in Peugeot jumped 11% Tuesday after the French car maker showed signs it may deliver the first profit at its newly acquired German unit in about two decades.
GM sold Opel and British brand Vauxhall to Peugeot last August for $2.2 billion after many years of losses and failed attempts to turn the unit around. In November, Peugeot Chief Executive Carlos Tavares launched an ambitious restructuring plan for Opel aimed at repeating a similar success he had with Peugeot.
Tuesday’s results may be the first clear indication that the strategy is working.
Peugeot, which also manufactures the Citroën brand, said group net profit in the first half of the year rose to €1.48 billion ($1.73 billion) from €1.26 billion a year earlier, beating expectations. Revenue rose 40% to €38.40 billion.
Opel made an operating profit of €502 million and sharply increased its operating margin. Mr. Tavares said the unit cut fixed costs by 28% and has started to reduce variable costs ahead of schedule.
“We have been right-sizing the costs, investing much more efficiently than in the past and preparing for the rebound,” Mr. Tavares said in reference to Opel on Tuesday in a results presentation.
Opel was a drag on GM for years, racking up billions of dollars in losses in a European market struggling with overcapacity and low profits. The sale left GM with almost no presence in Europe, the world’s third-biggest auto market.
But Mr. Tavares bet that with Opel he could replicate the turnaround he put into effect when he took the helm at Peugeot, where he slashed jobs and production to turn it into one of Europe’s most profitable companies.
Mr. Tavares was quick to announce sweeping changes at Opel after the acquisition.
As well as cutting jobs and pushing further into electric vehicles, the company aimed to make savings by accelerating plans to shift production to the French car maker’s technology, allowing the larger car group to cut costs by building Peugeot, Citroën, Opel and Vauxhall models with the same equipment and parts.
“The group demonstrates since 2014 its recurring ability to level up global profitability, efficiency and volumes, despite strong headwinds,” Mr. Tavares said Tuesday in the company’s press release.
He applauded Opel Chief Executive Michael Lohscheller and the unit’s management team and employees, and asked shareholders to acknowledge their achievement.
“I knew from day one that they were great people,” Mr. Tavares said.
July 24, 2018
General Motors Co. failed to make money out of Opel for years. Now Peugeot SA is showing its U.S. rival how it’s done.
Shares in Peugeot jumped 11% Tuesday after the French car maker showed signs it may deliver the first profit at its newly acquired German unit in about two decades.
GM sold Opel and British brand Vauxhall to Peugeot last August for $2.2 billion after many years of losses and failed attempts to turn the unit around. In November, Peugeot Chief Executive Carlos Tavares launched an ambitious restructuring plan for Opel aimed at repeating a similar success he had with Peugeot.
Tuesday’s results may be the first clear indication that the strategy is working.
Peugeot, which also manufactures the Citroën brand, said group net profit in the first half of the year rose to €1.48 billion ($1.73 billion) from €1.26 billion a year earlier, beating expectations. Revenue rose 40% to €38.40 billion.
Opel made an operating profit of €502 million and sharply increased its operating margin. Mr. Tavares said the unit cut fixed costs by 28% and has started to reduce variable costs ahead of schedule.
“We have been right-sizing the costs, investing much more efficiently than in the past and preparing for the rebound,” Mr. Tavares said in reference to Opel on Tuesday in a results presentation.
Opel was a drag on GM for years, racking up billions of dollars in losses in a European market struggling with overcapacity and low profits. The sale left GM with almost no presence in Europe, the world’s third-biggest auto market.
But Mr. Tavares bet that with Opel he could replicate the turnaround he put into effect when he took the helm at Peugeot, where he slashed jobs and production to turn it into one of Europe’s most profitable companies.
Mr. Tavares was quick to announce sweeping changes at Opel after the acquisition.
As well as cutting jobs and pushing further into electric vehicles, the company aimed to make savings by accelerating plans to shift production to the French car maker’s technology, allowing the larger car group to cut costs by building Peugeot, Citroën, Opel and Vauxhall models with the same equipment and parts.
“The group demonstrates since 2014 its recurring ability to level up global profitability, efficiency and volumes, despite strong headwinds,” Mr. Tavares said Tuesday in the company’s press release.
He applauded Opel Chief Executive Michael Lohscheller and the unit’s management team and employees, and asked shareholders to acknowledge their achievement.
“I knew from day one that they were great people,” Mr. Tavares said.
Last edited by AZuser; 07-24-2018 at 08:32 AM.
02-26-2019, 06:31 AM
#19
Race Director
France's PSA Group will return to North America with the same brand that it pulled out of the region 28 years ago: Peugeot.
CEO Carlos Tavares pointed to Peugeot’s "strong growth" and profitability in revealing the selection Tuesday in Paris. Since announcing its planned return in 2016, PSA has maintained that any of its brands – including Citroen, DS and, more recently, Opel – might lead the comeback to the U.S. and Canada.
The vehicles for the U.S. will initially be sourced from China and Europe, he said.
The choice marks a big step on PSA's methodical path toward selling vehicles in a market that it abandoned in 1991. In 2017, PSA named former Nissan and TrueCar executive Larry Dominique to lead its North American charge. Last fall, Tavares indicated that decisions on a distribution model and where its U.S.-bound vehicles will be built were also likely by midyear. The automaker maintains that it’s in no hurry. Its only stated time frame is to have vehicles for sale in the U.S. by 2026.
In the meantime, PSA has been focusing on car-sharing and other mobility initiatives. Those efforts have been designed to help PSA understand U.S. consumers while expanding the 130-year-old automaker’s expertise in forms of transportation beyond the privately owned car.
Peugeot exited the U.S. market in 1991, driven out by a recession, slumping sales and the rising costs of U.S. regulations. The company had sold just 4,292 cars in 1990, nearly 80 percent below 1984 levels.
Last year, PSA said it had narrowed to 15 states and four Canadian provinces its top picks as possible points of entry for sales. Those states have customers who are willing to buy imports and represent 62 percent of vehicle sales nationwide, the company said.
https://www.autonews.com/automakers-...psas-return-us
CEO Carlos Tavares pointed to Peugeot’s "strong growth" and profitability in revealing the selection Tuesday in Paris. Since announcing its planned return in 2016, PSA has maintained that any of its brands – including Citroen, DS and, more recently, Opel – might lead the comeback to the U.S. and Canada.
The vehicles for the U.S. will initially be sourced from China and Europe, he said.
The choice marks a big step on PSA's methodical path toward selling vehicles in a market that it abandoned in 1991. In 2017, PSA named former Nissan and TrueCar executive Larry Dominique to lead its North American charge. Last fall, Tavares indicated that decisions on a distribution model and where its U.S.-bound vehicles will be built were also likely by midyear. The automaker maintains that it’s in no hurry. Its only stated time frame is to have vehicles for sale in the U.S. by 2026.
In the meantime, PSA has been focusing on car-sharing and other mobility initiatives. Those efforts have been designed to help PSA understand U.S. consumers while expanding the 130-year-old automaker’s expertise in forms of transportation beyond the privately owned car.
Peugeot exited the U.S. market in 1991, driven out by a recession, slumping sales and the rising costs of U.S. regulations. The company had sold just 4,292 cars in 1990, nearly 80 percent below 1984 levels.
Last year, PSA said it had narrowed to 15 states and four Canadian provinces its top picks as possible points of entry for sales. Those states have customers who are willing to buy imports and represent 62 percent of vehicle sales nationwide, the company said.
https://www.autonews.com/automakers-...psas-return-us
03-22-2019, 04:17 PM
#20
https://www.wsj.com/articles/peugeot...er-11553277192
Peugeot, After Digesting GM’s Europe Business, Set Sights on Fiat Chrysler
March 22, 2019
MILAN—Peugeot maker PSA Group approached Fiat Chrysler Automobiles NV earlier this year about combining the two car makers, according to people familiar with the matter, in a pitch to create a $45 billion industry behemoth that would reposition both companies in the U.S. and Europe.
Fiat Chrysler rebuffed the overture, as it had previous ones by the French car maker, according to these people. Fiat Chrysler has said it is open to a big deal with another auto maker if it fits the company’s objectives. Executives have balked, though, at a tie-up with Peugeot because it would increase the Italian-American auto maker’s already large exposure to Europe’s mature market, according to people familiar with the matter.
The company’s controlling family, the Agnellis of Italy, is also opposed to a deal that would include accepting a large proportion of PSA stock in any transaction, according to one of these people. Peugeot, which has telegraphed its interest in finding a partner, would likely need to fund any deal in large part with stock in order to keep its debt in check, according to this person. The French auto maker is still digesting its acquisition of General Motors Co.’s European business.
Executives at the two companies are no longer talking, according to people familiar with the matter. The approaches haven’t been previously reported.
Peugeot Chief Executive Carlos Tavares is eager to expand in the U.S., where the French brand has been absent for almost three decades. He has outlined plans to eventually reintroduce the nameplate in the U.S., but a tie up with Fiat Chrysler would give Peugeot greater access to the large American market, where Fiat Chrysler’s Jeep and Ram brands are popular. It would also provide access to a vast dealer network where Peugeot vehicles might be sold.
A deal would give Fiat Chrysler more exposure to Europe, where Peugeot sold 2.5 million vehicles last year compared with one million for Fiat Chrysler; but the Italian-American company has tried in recent years to lessen its dependence on the continent. A combined Peugeot-Fiat Chrysler would sell almost as many vehicles in Europe as Volkswagen AG, the market leader with a 24% market share.
A combination would also lift Peugeot and Fiat Chrysler in the auto industry’s global league table, offering it scale and potential cost-cutting opportunities. The two companies together sold 8.7 million cars last year, which would have ranked their combination at No. 4, just ahead of General Motors’ 8.4 million vehicles sold.
Still, a combined Peugeot-Fiat Chrysler would lag some way behind the world’s top three. Volkswagen sold 10.8 million vehicles last year, roughly the same as the alliance between Renault SA, Nissan Motor Co. and Mitsubishi Motors Co. No. 3 Toyota Motor Corp. tallied 10.6 million vehicles.
March 22, 2019
MILAN—Peugeot maker PSA Group approached Fiat Chrysler Automobiles NV earlier this year about combining the two car makers, according to people familiar with the matter, in a pitch to create a $45 billion industry behemoth that would reposition both companies in the U.S. and Europe.
Fiat Chrysler rebuffed the overture, as it had previous ones by the French car maker, according to these people. Fiat Chrysler has said it is open to a big deal with another auto maker if it fits the company’s objectives. Executives have balked, though, at a tie-up with Peugeot because it would increase the Italian-American auto maker’s already large exposure to Europe’s mature market, according to people familiar with the matter.
The company’s controlling family, the Agnellis of Italy, is also opposed to a deal that would include accepting a large proportion of PSA stock in any transaction, according to one of these people. Peugeot, which has telegraphed its interest in finding a partner, would likely need to fund any deal in large part with stock in order to keep its debt in check, according to this person. The French auto maker is still digesting its acquisition of General Motors Co.’s European business.
Executives at the two companies are no longer talking, according to people familiar with the matter. The approaches haven’t been previously reported.
Peugeot Chief Executive Carlos Tavares is eager to expand in the U.S., where the French brand has been absent for almost three decades. He has outlined plans to eventually reintroduce the nameplate in the U.S., but a tie up with Fiat Chrysler would give Peugeot greater access to the large American market, where Fiat Chrysler’s Jeep and Ram brands are popular. It would also provide access to a vast dealer network where Peugeot vehicles might be sold.
A deal would give Fiat Chrysler more exposure to Europe, where Peugeot sold 2.5 million vehicles last year compared with one million for Fiat Chrysler; but the Italian-American company has tried in recent years to lessen its dependence on the continent. A combined Peugeot-Fiat Chrysler would sell almost as many vehicles in Europe as Volkswagen AG, the market leader with a 24% market share.
A combination would also lift Peugeot and Fiat Chrysler in the auto industry’s global league table, offering it scale and potential cost-cutting opportunities. The two companies together sold 8.7 million cars last year, which would have ranked their combination at No. 4, just ahead of General Motors’ 8.4 million vehicles sold.
Still, a combined Peugeot-Fiat Chrysler would lag some way behind the world’s top three. Volkswagen sold 10.8 million vehicles last year, roughly the same as the alliance between Renault SA, Nissan Motor Co. and Mitsubishi Motors Co. No. 3 Toyota Motor Corp. tallied 10.6 million vehicles.
07-30-2020, 10:33 PM
#21
PSA chief states Electric vehicles are too dang expensive to build
Carlos Tavares, CEO of Groupe PSA, believes the secret to mainstreaming electric vehicles may have something to do with the industry being able to sell them at a profit. The French automaker’s boss has expressed concerns about a segment that’s almost entirely propped up by taxpayers — sounds likes someone might have taken a business course before running a multinational automaker!
It’s not that EVs are bad; they’re just too novel to be a bargain. Tavares believes the high development costs associated with newer technologies have effectively made electric cars money-losers without financial assistance from the government. He thinks their ultimate success (or failure) hinges upon finding a way to make them profitable without being perpetually subsidized by the government while reducing the amount of raw materials required for battery manufacture. As a bonus, he hinted that automakers might have juicer R&D budgets if they prioritized spending — hopefully accelerating the process of making EVs a little easier on everyone’s bank account.
“Affordability will be the challenge for the next five years in terms of costs,” Tavares told the Financial Times this week. “Those breakthroughs need to come from real estate, distribution costs, sourcing all the components of cost structure will have to be combined to bring this affordability.”
From FT:
Carmakers and consumers in the EU benefit from about €12,000 in subsidies for each electric car through incentives and other measures, he said.
“This is the gap that we need to close if we want to offer this to the biggest possible number of citizens, which means all sorts of cost reduction needs to be addressed to face this challenge,” Mr Tavares said.
PSA, which moved its headquarters from the Champs-Elysées to the outskirts of Paris to save money several years ago, intends to make even more radical moves by scaling back an office network vacated during the pandemic as staff worked from home.
This is something we’re seeing across the globe. Now that pandemic lockdowns have proven swaths of employees can work remotely, employers are beginning to wonder why they’re paying for spaces to house them during the day.
“We are going to shrink our real estate footprint,” Tavares explained. “This will represent a benefit for employees. They will spend less money on transportation to go back and forth, and will have a better work-life balance.”
While PSA intends to retain locations for teams to meet in a physical space when necessary, the current plan is to scale back wherever possible and adopt a shared-space model for employees who can’t stay home forever. While some studies claim this increases burnout rates (as staff often find it difficult to decouple from working), increased risk of depression, and overall losses in workplace synergy, it’s often cheaper to deal with minor consequences and not to pay for another cubicle.
Whether the cons of working remotely outweighs the pros probably has a lot to do with the job in question and how its handled by the company. The only thing that seems crystal clear is the opportunity for savings, which PSA seems to know a thing or two about. It was one of the few manufactures that went through the first half of 2020 and still managed to turn a profit —banking €595 million while the rest of the industry languished.
Those funds will be recirculated into its EV development program. Even though Tavares seems skeptical of battery-driven automobiles’ ability to thrive independent of government assistance, they’re also forcing the issue. Automakers hoping to sell in places like Europe and China are effectively forced into bending over backwards to comps with emission rules or be fined out of existence. That’s one reason why you’re seeing so much talk about electric cars of late, as well as examples that were rushed out the door before the were ready — it’s the only way many brands can meet the European threshold of 95 grams of carbon-dioxide per kilometer that’s coming in 2021.
This is also why we’ve seen so many sizable crossovers previewed as BEVs of late. Their heft makes for a terribly energy-inefficient product, but their lack of a tailpipe makes them exempt from stringent environmental mandates that rarely bother to consider where the electricity comes from. Making SUVs rely on battery power might be the only way to continue selling them. The bigger issue, however, remains in finding a way to make EVs profitable without government help in the short term. Even Tesla owes a substantial amount of its current profitability to selling off carbon credits to automakers building internal combustion models, and it’s the gold standard for how to run an electric vehicle firm.
Legacy automakers are having an “oh....shi*” moment.
It’s not that EVs are bad; they’re just too novel to be a bargain. Tavares believes the high development costs associated with newer technologies have effectively made electric cars money-losers without financial assistance from the government. He thinks their ultimate success (or failure) hinges upon finding a way to make them profitable without being perpetually subsidized by the government while reducing the amount of raw materials required for battery manufacture. As a bonus, he hinted that automakers might have juicer R&D budgets if they prioritized spending — hopefully accelerating the process of making EVs a little easier on everyone’s bank account.
“Affordability will be the challenge for the next five years in terms of costs,” Tavares told the Financial Times this week. “Those breakthroughs need to come from real estate, distribution costs, sourcing all the components of cost structure will have to be combined to bring this affordability.”
From FT:
Carmakers and consumers in the EU benefit from about €12,000 in subsidies for each electric car through incentives and other measures, he said.
“This is the gap that we need to close if we want to offer this to the biggest possible number of citizens, which means all sorts of cost reduction needs to be addressed to face this challenge,” Mr Tavares said.
PSA, which moved its headquarters from the Champs-Elysées to the outskirts of Paris to save money several years ago, intends to make even more radical moves by scaling back an office network vacated during the pandemic as staff worked from home.
This is something we’re seeing across the globe. Now that pandemic lockdowns have proven swaths of employees can work remotely, employers are beginning to wonder why they’re paying for spaces to house them during the day.
“We are going to shrink our real estate footprint,” Tavares explained. “This will represent a benefit for employees. They will spend less money on transportation to go back and forth, and will have a better work-life balance.”
While PSA intends to retain locations for teams to meet in a physical space when necessary, the current plan is to scale back wherever possible and adopt a shared-space model for employees who can’t stay home forever. While some studies claim this increases burnout rates (as staff often find it difficult to decouple from working), increased risk of depression, and overall losses in workplace synergy, it’s often cheaper to deal with minor consequences and not to pay for another cubicle.
Whether the cons of working remotely outweighs the pros probably has a lot to do with the job in question and how its handled by the company. The only thing that seems crystal clear is the opportunity for savings, which PSA seems to know a thing or two about. It was one of the few manufactures that went through the first half of 2020 and still managed to turn a profit —banking €595 million while the rest of the industry languished.
Those funds will be recirculated into its EV development program. Even though Tavares seems skeptical of battery-driven automobiles’ ability to thrive independent of government assistance, they’re also forcing the issue. Automakers hoping to sell in places like Europe and China are effectively forced into bending over backwards to comps with emission rules or be fined out of existence. That’s one reason why you’re seeing so much talk about electric cars of late, as well as examples that were rushed out the door before the were ready — it’s the only way many brands can meet the European threshold of 95 grams of carbon-dioxide per kilometer that’s coming in 2021.
This is also why we’ve seen so many sizable crossovers previewed as BEVs of late. Their heft makes for a terribly energy-inefficient product, but their lack of a tailpipe makes them exempt from stringent environmental mandates that rarely bother to consider where the electricity comes from. Making SUVs rely on battery power might be the only way to continue selling them. The bigger issue, however, remains in finding a way to make EVs profitable without government help in the short term. Even Tesla owes a substantial amount of its current profitability to selling off carbon credits to automakers building internal combustion models, and it’s the gold standard for how to run an electric vehicle firm.
Legacy automakers are having an “oh....shi*” moment.
07-30-2020, 11:56 PM
#22
The company actually turn profit with out regulatoy gimmicks and no hype. They are not burdened by building factory for every product.
https://www.forbes.com/sites/michael.../#6d149814711bPSA has already proven itself well managed to weather the Covid-19 pandemic, with a first half profit of €595 million despite its biggest markets being locked down for months.
And now figures have emerged showing its e-208, the all-electric version of its mass-volume small hatchback, stunning the market in Europe.
The e-208, which is built on the same production lines as the combustion-powered 208 models, achieved orders of 17 percent of Peugeot’s 208 model mix across its 10 biggest European markets in June.
France tops the European EV sales list at around 45,000 a month, just ahead of Germany. The United Kingdom has sneaked past Norway into third, followed by The Netherlands in fifth, then Italy, Sweden and Switzerland.
Between them, Germany’s Volkswagen Group and France’s Renault-Nissan-Mitsubishi Alliance hold almost 45 percent of Europe’s EV market, with Volkswagen owning 22.5 percent and the Alliance 22.2 percent.
https://www.forbes.com/sites/michael.../#6d149814711bPSA has already proven itself well managed to weather the Covid-19 pandemic, with a first half profit of €595 million despite its biggest markets being locked down for months.
And now figures have emerged showing its e-208, the all-electric version of its mass-volume small hatchback, stunning the market in Europe.
The e-208, which is built on the same production lines as the combustion-powered 208 models, achieved orders of 17 percent of Peugeot’s 208 model mix across its 10 biggest European markets in June.
France tops the European EV sales list at around 45,000 a month, just ahead of Germany. The United Kingdom has sneaked past Norway into third, followed by The Netherlands in fifth, then Italy, Sweden and Switzerland.
Between them, Germany’s Volkswagen Group and France’s Renault-Nissan-Mitsubishi Alliance hold almost 45 percent of Europe’s EV market, with Volkswagen owning 22.5 percent and the Alliance 22.2 percent.
07-31-2020, 12:48 AM
#23
Sanest Florida Man
“We are going to shrink our real estate footprint,” Tavares explained. “This will represent a benefit for employees. They will spend less money on transportation to go back and forth, and will have a better work-life balance.”
03-08-2021, 11:06 PM
#24
Race Director
Stellantis confirmed that Peugeot's return to America is off the table with the appointment of Larry Dominique to the role of senior vice president of Alfa Romeo brand for North America. Dominique was heading up PSA's efforts to revive the Peugeot brand stateside, and this new assignment signals Stellantis' intent to focus on growing Alfa's presence here.
While this is the first official confirmation that Peugeot's American return was off the table, the announcement was almost universally expected. It was confirmed early Monday by Automotive News (subscription req.) after the announcement of Dominique's new role; how he intends to steer Alfa's U.S. arm remains to be seen.
What was already good news for Chrysler is now buoying Alfa Romeo's future prospects here. While Alfas have been on sale in the U.S. since 2008, then-FCA didn't put its full weight behind a volume effort until 2017, ahead of the launch of the Giulia sedan, which was well-received by critics (ourselves included) but fell flat. The subsequent launch of the Stelvio indicated that even America's appetite for crossovers may not be enough to keep the Italian brand afloat.
This is good news for Alfa fans at a time where such tidings are few and far between. Despite the brand's relatively flat performance in a roller coaster 2020, prospects for the brand's future here have appeared bleak. Dominique's appointment means that Stellantis is committed to Alfa in the the short term, if nothing else — at least more so than it is committed to Peugeot's revival — and for now, that will have to be enough.
While this is the first official confirmation that Peugeot's American return was off the table, the announcement was almost universally expected. It was confirmed early Monday by Automotive News (subscription req.) after the announcement of Dominique's new role; how he intends to steer Alfa's U.S. arm remains to be seen.
What was already good news for Chrysler is now buoying Alfa Romeo's future prospects here. While Alfas have been on sale in the U.S. since 2008, then-FCA didn't put its full weight behind a volume effort until 2017, ahead of the launch of the Giulia sedan, which was well-received by critics (ourselves included) but fell flat. The subsequent launch of the Stelvio indicated that even America's appetite for crossovers may not be enough to keep the Italian brand afloat.
This is good news for Alfa fans at a time where such tidings are few and far between. Despite the brand's relatively flat performance in a roller coaster 2020, prospects for the brand's future here have appeared bleak. Dominique's appointment means that Stellantis is committed to Alfa in the the short term, if nothing else — at least more so than it is committed to Peugeot's revival — and for now, that will have to be enough.
03-09-2021, 08:57 AM
#25
The Third Ball
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This is a good thing. Right now you can't beat Alfa's drivers experience if you're a car person. Best chassis, handling, driving pleasure out there.
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