Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Is Peugeot-Citroën on the verge of buying Mitsubishi?]]>http://www.autoblog.com/2009/12/04/is-peugeot-citroen-on-the-verge-of-buying-mitsubishi/http://www.autoblog.com/2009/12/04/is-peugeot-citroen-on-the-verge-of-buying-mitsubishi/http://www.autoblog.com/2009/12/04/is-peugeot-citroen-on-the-verge-of-buying-mitsubishi/#commentsFiled under: , , , ,


The French and the Japanese have gotten together to form a magic partnership once already with Carlos Ghosn at the helm. The question is, then, can that success be replicated? PSA Peugeot-Citroën seems to hope so, and it is reportedly on the verge of purchasing a controlling stake (somewhere between 30 and 53 percent, depending on the report) in Mitsubishi Motors.

The total price for the acquisition would cost the European automaker over $3 billion and the deal would also include Mitsubishi acquiring a somewhat smaller stake in PSA Peugeot-Citroën - again, similar to the situation between France's Renault and Japan's Nissan.

So, what does Mitsubishi have that Peugeot wants? Three things, apparently: A presence in the States, SUV expertise and, perhaps most importantly, electric vehicle technology. If a deal does indeed take place, the resulting entity would be the sixth largest automaker by sales in the world.

[Source: BusinessWeek]

Is Peugeot-Citroën on the verge of buying Mitsubishi? originally appeared on Autoblog on Fri, 04 Dec 2009 15:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>citroenmergermitsubishiMitsubishi MotorsMitsubishiMotorspeugeotpsapsa peugeot citroenpsa peugeot citroen mitsubishiPsaPeugeotCitroenPsaPeugeotCitroenMitsubishitie-upFri, 04 Dec 2009 15:59:00 EST<![CDATA[REPORT: Ghosn still thinks Renault-Nissan should have partnered with GM in 2006]]>http://www.autoblog.com/2009/11/20/report-ghosn-still-things-renault-nissan-should-have-partnered/http://www.autoblog.com/2009/11/20/report-ghosn-still-things-renault-nissan-should-have-partnered/http://www.autoblog.com/2009/11/20/report-ghosn-still-things-renault-nissan-should-have-partnered/#commentsFiled under: , ,



With all the trials and tribulations General Motors has endured during the past year, we almost forgot that the Detroit, MI-based automaker nearly got itself tied up with Renault-Nissan. Back in 2006, the two companies discussed joining forces to become a singular global automotive juggernaut, but in the end, GM felt it was in its best interests to go it alone and face the quickly disintegrating global automotive market by themselves.

While GM's situation ultimately improved via bankruptcy and a $50 billion helping hand from the U.S. government, Renault-Nissan CEO Carlos Ghosn still thinks the partnership would have been "without a doubt" in everyone's best interests. Ghosn reportedly made the comments during a meeting of the Council on Foreign Relations, adding that "there was a possibility to create something that would be extremely competitive."

Ghosn then went on to say that he wasn't happy the two companies didn't end up working together after GM nearly collapsed because "when you see the disaster and the waste of energy and skills and talent, nobody can be happy." The charismatic CEO also said that Renault-Nissan was very concerned about GM's precarious position earlier in the year due to the fact that his company uses many of the same suppliers. If GM had gone down, it would have probably taken more than a few suppliers with it, and Ghosn says that as a result, Nissan wouldn't have been able to make a single vehicle in North America.

While we can definitely understand why Ghosn would have preferred that the marriage of his company to GM was consecrated, we still don't see how it would have helped The General in the long run. GM still would have been in a very uncompetitive cash situation, and Renault-Nissan doesn't have much in the way of technology or platforms that the General doesn't already the equivalents to.

[Source: The Detroit News | Image: Raveendran/AFP/Getty]

REPORT: Ghosn still thinks Renault-Nissan should have partnered with GM in 2006 originally appeared on Autoblog on Fri, 20 Nov 2009 11:02:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>carlos ghosnCarlosGhosnGeneral MotorsGeneralMotorsGhosngmmergermergersnissanFri, 20 Nov 2009 11:02:00 EST<![CDATA[Volkswagen looking to take stake in Suzuki by year's end?]]>http://www.autoblog.com/2009/09/20/volkswagen-looking-to-take-stake-in-suzuki-by-years-end/http://www.autoblog.com/2009/09/20/volkswagen-looking-to-take-stake-in-suzuki-by-years-end/http://www.autoblog.com/2009/09/20/volkswagen-looking-to-take-stake-in-suzuki-by-years-end/#commentsFiled under: , , ,

The rumors keep coming. Just last month, we reported that Volkswagen AG was interested in a small slice of Suzuki Motors. Now, the German industry publication Automobilwoche is reiterating the same news. Apparently, a Suzuki executive at the Frankfurt Motor Show mentioned that an agreement between the two automakers would be in place by the end of the year. "For Suzuki and VW this connection would be a win-win situation. Suzuki would have access to a variety of VW's technology, while Volkswagen would have a solid supporting leg in India and Southeast Asia," the unnamed source said.

Neither party has any official word on the matter. However, last Monday Martin Winterkorn, VW's Chief Executive, said the product portfolio of the Japanese automaker would fit well with his company. Thanks for the tip, James!

[Source: Reuters]

Volkswagen looking to take stake in Suzuki by year's end? originally appeared on Autoblog on Sun, 20 Sep 2009 11:35:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>buyingmergerpartnershipsharesSuzukiSuzuki MotorsSuzukiMotorsTalksVolkswagenVolkswagen AGVolkswagenAgVWSun, 20 Sep 2009 11:35:00 EST<![CDATA[Porsche and VW expected to keep NA operations independent?]]>http://www.autoblog.com/2009/08/17/porsche-and-vw-expected-to-keep-north-american-operations-indepe/http://www.autoblog.com/2009/08/17/porsche-and-vw-expected-to-keep-north-american-operations-indepe/http://www.autoblog.com/2009/08/17/porsche-and-vw-expected-to-keep-north-american-operations-indepe/#commentsFiled under: ,

The German auto industry is in for a big shakeup with the news that Porsche will be merging with the Volkswagen group. But while Wolfsburg and Stuttgart prepare for mutual integration, on this side of the Atlantic, business is expected to carry on as usual.

According to the latest report from Automotive News, Porsche Cars North America will continue to report back to Porsche HQ in Germany, as opposed to re-routing the chain of command to go through Volkswagen of America. In this way, Porsche's North American distribution and sales and service networks will continue to operate much as they have, and in the same way which the Volkswagen Group already operates its other premium divisions, with Audi of America reporting back to Ingolstadt, Lamborghini back to Sant'Agata and Bentley back to Crewe. The takeaway? Don't expect to see 911s selling down at your local VW dealership any time soon.

[Source: Automotive News - subs. req'd | Image: Torsten Silz/AFP/Getty]

Porsche and VW expected to keep NA operations independent? originally appeared on Autoblog on Mon, 17 Aug 2009 16:40:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>mergerporscheporsche cars north americaporsche volkswagen mergerporsche vw mergerPorscheCarsNorthAmericaPorscheVolkswagenMergerPorscheVwMergervolkswagenvolkswagen of americavolkswagen porsche mergerVolkswagenOfAmericaVolkswagenPorscheMergervw porsche mergerVwPorscheMergerMon, 17 Aug 2009 16:40:00 EST<![CDATA[PSA Chairman Thierry Peugeot keen on merger]]>http://www.autoblog.com/2009/06/05/psa-chairman-thierry-peugeot-keen-on-merger/http://www.autoblog.com/2009/06/05/psa-chairman-thierry-peugeot-keen-on-merger/http://www.autoblog.com/2009/06/05/psa-chairman-thierry-peugeot-keen-on-merger/#commentsFiled under: ,


PSA/Peugeot-Citroen incoming CEO Philippe Varin (left) and chairman Thierry Peugeot (right)

It's buddy-up time in the European auto industry, and French automaker PSA/Peugeot-Citroen does not want to be left all by itself. With Fiat gobbling up automakers large and small, and General Motors poised to sell off its European assets, the Peugeot family, which owns a controlling interest in parent company PSA, wants to pursue a merger. And towards that end, the family has stated its willingness to dilute its own interest in Europe's second-largest automaker.

Currently, the Peugeot family - headed by the normally reclusive Thierry Peugeot (above, right), chairman of the company's supervisory board - holds 30% of PSA's shares, and controls 45% of its voting rights. The Peugeots would be willing to give up some of its shares, as long as it remained the largest shareholder. The announcement came the day before the company's annual shareholders meeting, at which Philippe Varin (above, left) was presented as PSA's new chief executive to replace the ousted Christian Streiff.

[Source: Automotive News Europe - Sub. Req.]

PSA Chairman Thierry Peugeot keen on merger originally appeared on Autoblog on Fri, 05 Jun 2009 07:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>christian streiffChristianStreiffcitroenmergermergers and acquisitionsMergersAndAcquisitionspeugeotpeugeot familyPeugeotFamilyphilippe varinPhilippeVarinpsapsa mergerpsa peugeot citroenPsaMergerPsaPeugeotCitroenthierry peugeotThierryPeugeotFri, 05 Jun 2009 07:58:00 EST<![CDATA[REPORT: Porsche expects to book $979.5 million in profits for fiscal year]]>http://www.autoblog.com/2009/06/02/report-porsche-expects-to-book-979-5-million-in-profits-for-fi/http://www.autoblog.com/2009/06/02/report-porsche-expects-to-book-979-5-million-in-profits-for-fi/http://www.autoblog.com/2009/06/02/report-porsche-expects-to-book-979-5-million-in-profits-for-fi/#commentsFiled under: ,



Porsche may have gotten in over its head when it tried to take over Volkswagen outright, but that doesn't mean the German automaker is struggling to sell premium sports cars. The Stuttgart-based automaker is planning on selling 80,000 units in 2009 at an astounding profit margin of 12%. That's $979 million in US currency, and more profit than most automakers several times its size will likely achieve during the global economic downturn.

The news of Porsche's healthy booty comes as a bit of a surprise considering its flirtation with bankruptcy back in March. Porsche has 9 billion euros in debt hanging over its head, though it told Reuters it can cope with the red ink. Porsche had to borrow 700 million euro from Volkswagen to get itself out of an earlier jam, and it's now discussing a merger with Europe's largest volume automaker.

Claus Schmiedel, a member of parliament in Baden-Wuerttemberg, Germany, says that Porsche intends to increase sales in 2010 to 100,000 units, and that it intends to again eclipse 1 billion euro in earnings. Not too shabby for an automaker pushed to the brink of insolvency.

[Source: Reuters | Image Source: Michael Latz/Getty]

REPORT: Porsche expects to book $979.5 million in profits for fiscal year originally appeared on Autoblog on Tue, 02 Jun 2009 09:01:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>975 million profit975MillionProfitbankruptcymergerporscheprofitvwTue, 02 Jun 2009 09:01:00 EST<![CDATA[Look Who's Talking Again: Porsche, VW resume negotiations]]>http://www.autoblog.com/2009/05/22/look-whos-talking-again-porsche-vw-resume-negotiations/http://www.autoblog.com/2009/05/22/look-whos-talking-again-porsche-vw-resume-negotiations/http://www.autoblog.com/2009/05/22/look-whos-talking-again-porsche-vw-resume-negotiations/#commentsFiled under: , , ,



The way things read, Porsche might not have to get a merger deal done with Volkswagen, but it would appear to be in the carmaker's best interests if it does. The holdup seems to be Porsche - since VW still doesn't know what Porsche's financial situation is, talks broke down earlier this week. VW's labor leader, who has a seat on VW's board, has also said he doesn't want to speak to Porsche again until Porsche tells everyone what it really has in mind.

Now, though, the German corporate siblings have issued a joint statement saying, "Both companies will advance efforts toward this goal in a constructive way and in mutual agreement with all the parties concerned." Still, no one knows what that means other than a commitment to keep talking - which must count for something. In the meantime, Porsche is looking for another €1.75 billion in loans ($2.43B USD) to refinance its debt, and it is also due to receive a debt rating which could give a glimpse into what's really on the books.

[Source: Reuters]

Look Who's Talking Again: Porsche, VW resume negotiations originally appeared on Autoblog on Fri, 22 May 2009 08:26:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>europefinancialsgermanymergermergersporscheporsche vwPorscheVwvolkswagenvw porscheVwPorscheFri, 22 May 2009 08:26:00 EST<![CDATA[VIDEO: Hoofy and Boo's take on the Chrysler-Fiat tie up]]>http://www.autoblog.com/2009/05/19/video-hoofy-and-boos-take-on-the-chrysler-fiat-tie-up/http://www.autoblog.com/2009/05/19/video-hoofy-and-boos-take-on-the-chrysler-fiat-tie-up/http://www.autoblog.com/2009/05/19/video-hoofy-and-boos-take-on-the-chrysler-fiat-tie-up/#commentsFiled under: , ,


Hoofy and Boo: Click above to watch the video after the jump

You may or may not have heard of Hoofy and Boo. They're animated characters from the site Minyanville. Hoofy is the big, confident anchorman that just so happens to be a CGI bull. Boo is a bit more cynical about the world at large, and it appears he's not very fond of Chrysler or Fiat for that matter.

The two took on the issue of the Chrysler-Fiat tie-up, with Hoofy behind the desk and Boo on-location in the most blight-filled location in Detroit. While Hoofy was all about the alliance and Chrysler's restructuring, Boo seems to want to dance on the grave of both companies. He points out the poor quality records of both companies, and gets in some zingers about some of the failed vehicles of both companies past. And yes, you do hear gun shots and police sirens in the background.

The caption for the video is "two turkeys combine in an ill-conceived effort to make an eagle." Too bad Chrysler ditched Eagle over 10 years ago. Hit the jump to view the two minute video for yourself.

[Source: Minyanville]

Continue reading VIDEO: Hoofy and Boo's take on the Chrysler-Fiat tie up

VIDEO: Hoofy and Boo's take on the Chrysler-Fiat tie up originally appeared on Autoblog on Tue, 19 May 2009 17:01:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>chryslerfiathoofy and booHoofyAndBoomergerTue, 19 May 2009 17:01:00 EST<![CDATA[Porsche and Piech companies to own about half of post-merger VW? ]]>http://www.autoblog.com/2009/05/11/porsche-and-piech-companies-to-own-about-half-of-post-merger-vw/http://www.autoblog.com/2009/05/11/porsche-and-piech-companies-to-own-about-half-of-post-merger-vw/http://www.autoblog.com/2009/05/11/porsche-and-piech-companies-to-own-about-half-of-post-merger-vw/#commentsFiled under: , ,



Porsche's merger with Volkswagen is a step back from Porsche taking outright control of VW, something the automaker has been fighting various German entities to do for over a year. The willingness to co-exist is being put down to Porsche's debt levels, which can't be easy to refinance when banks are holding on to their money like a toddler guarding his last chocolate Easter bunny.

According to reports, the ten brands comprising the conglomerate will maintain their independence and might be presided over current Audi CEO Rupert Stadler. The state of Lower Saxony - the power behind the infamous Volkswagen Law - has a 20% stake and veto power concerning VW and it is likely to get up to 25% of the new company, even though it's wary of the financial risks of the merged firm. Another investor could buy 25-35% of the company, leaving the Porsche and Piech families with the remaining 45-55%.

While Deutsche Bank and Goldman Sachs continue to play with the options, negotiations between Porsche and VW are scheduled to begin this week.

[Source: Auto News, sub req'd]

Porsche and Piech companies to own about half of post-merger VW? originally appeared on Autoblog on Mon, 11 May 2009 10:57:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Deutsche BankDeutscheBankfinancialsGoldman SachsGoldmanSachsmergermergersporscheporsche vwPorscheVwvolkswagenvwMon, 11 May 2009 10:57:00 EST<![CDATA[Porsche denies rumored plans to sell itself to Volkswagen and swap CEOs]]>http://www.autoblog.com/2009/04/23/porsche-denies-rumored-plans-to-sell-itself-to-volkswagen-and-sw/http://www.autoblog.com/2009/04/23/porsche-denies-rumored-plans-to-sell-itself-to-volkswagen-and-sw/http://www.autoblog.com/2009/04/23/porsche-denies-rumored-plans-to-sell-itself-to-volkswagen-and-sw/#commentsFiled under: , , ,



Here at Autoblog reports regularly cross our desks suggesting all sorts of contorted deals supposedly being brokered between automakers. This one's in bed with that one, that one's selling the other but retaining a minority interest, another one's starting a joint venture with yet another while buying part of its competitor. And we try to make sense of it all, if not for your sake then for our own sanity's, but some are just way over the top. Like this latest report that suggests that, in essence, Porsche could sell itself to Volkswagen.

Wait, what? Didn't Porsche just buy Volkswagen? Well yeah, for the most part. The parent company Porsche Automobil Holding SE holds majority interest in the Volkswagen group, and is planning on buying more. But in order to do so, the rumors suggest, the holding company would have to sell its auto manufacturing unit (Porsche AG) to Volkswagen, and then, we're supposed to understand, turn around a buy another quarter of VW's shares with the cash generated. (With us so far?) The put would undoubtedly drive Volkswagen's shares up, generating more cash for VW and more debt for a hungry Porsche.

Of course both German carmakers are dismissing the reports as "nonesense", just like they have about another rumor that suggests Porsche is planning on replacing its CEO Wendelin Wiedeking with Volkswagen chief-exec Martin Winterkorn. Those rumors were fueled by Wiedeking's conspicuous absense at the Panamera launch in Shanghai, where Winterkorn was in attendance, but similarly denied by both automakers as mere conjecture. Though the CEO swap rumor is slightly more believable, these latest turns of the rumor mill still make about as much sense as a convertible amphibious submarine...but then again, we've seen that, too.

[Sources: Reuters, The Wall Street Journal and Automotive News Europe - subs. req'd]

Porsche denies rumored plans to sell itself to Volkswagen and swap CEOs originally appeared on Autoblog on Thu, 23 Apr 2009 14:24:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>acquisitionsholdingm and aMAndAmergermergersmergers and acquisitionsMergersAndAcquisitionsporscheporsche volkswagenPorscheVolkswagenvolkswagenThu, 23 Apr 2009 14:24:00 EST<![CDATA[Despite denial of Fiat/Opel tie-up, critics say alliance would be "far more compelling" than Chrysler deal]]>http://www.autoblog.com/2009/04/23/despite-denial-of-fiat-opel-tie-up-critics-say-alliance-would-b/http://www.autoblog.com/2009/04/23/despite-denial-of-fiat-opel-tie-up-critics-say-alliance-would-b/http://www.autoblog.com/2009/04/23/despite-denial-of-fiat-opel-tie-up-critics-say-alliance-would-b/#commentsFiled under: , , , ,



Despite Fiat SpA chairman Luca de Montezemolo (above) denying that his company is interested in purchasing General Motors' Opel brand, a new report by The Wall Street Journal indicates that many investors and analysts apparently find the alleged tie-up to be "far more compelling" than Fiat's proposed alliance with Chrysler. If such a deal were to be consummated, it would make Fiat Europe's number-two automaker, and the prospect of the increased power and lowered overhead that could result still has speculators buzzing.

For their part, Opel spokespeople are declining to comment on the conjecture.

[Source: The Wall Street Journal | Image: Fabrice Coffrini/AFP/Getty]

Despite denial of Fiat/Opel tie-up, critics say alliance would be "far more compelling" than Chrysler deal originally appeared on Autoblog on Thu, 23 Apr 2009 12:57:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ChryslerFiatGeneral MotorsGeneralMotorsGMmergerMontezemoloOpelrumorrumormilltakeoverThu, 23 Apr 2009 12:57:00 EST<![CDATA[REPORT: GM bondholders could still spur Chrysler merger]]>http://www.autoblog.com/2009/02/25/report-gm-bondholders-could-still-spur-chrysler-merger/http://www.autoblog.com/2009/02/25/report-gm-bondholders-could-still-spur-chrysler-merger/http://www.autoblog.com/2009/02/25/report-gm-bondholders-could-still-spur-chrysler-merger/#commentsFiled under: , , ,



It's the General Motors and Chrysler merger saga, take three. A few months ago, GM said "No can do" to the union, taking off its ring and walking out of church. Now GM's bondholders may be contemplating a shotgun wedding, forcing The General back to the altar over the debt-equity swap the automaker needs to conclude to have a chance at more government financing.

GM needs to shed $18 billion in unsecured public debt, but the bondholders have so far been complaining about the equity they're being offered. According to an outside analyst, if bondholders think a merged GM-Chrysler will save the combined company from $6 billion to $8 billion dollars, the bondholder might only agree to the debt-equity swap if GM merges with Chrysler. GM hasn't shared its exchange plan with the bondholders yet, so the stakeholders could change their minds once they have the information.

Of course, the problems with the merger possibility don't appear to be any different than they were last time, and while it might seem appealing to "collapse two problems into one," critics say that one combined problem could be a bigger hassle for the government than the two together. The merged company would still need funding, on top of which it would need billions to simply complete the merger. In short, this deal still doesn't look like it makes sense. Hat tip to Dan.

[Source: Financial Post]

REPORT: GM bondholders could still spur Chrysler merger originally appeared on Autoblog on Wed, 25 Feb 2009 12:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>chrylserchrysler bailoutChryslerBailoutfinancialsgmgm bailoutgm chrysler mergerGmBailoutGmChryslerMergergovernmentmergermergersWed, 25 Feb 2009 12:29:00 EST<![CDATA[Chrysler still thinks merging with GM a good idea]]>http://www.autoblog.com/2009/02/20/chrysler-still-thinks-merging-with-gm-a-good-idea/http://www.autoblog.com/2009/02/20/chrysler-still-thinks-merging-with-gm-a-good-idea/http://www.autoblog.com/2009/02/20/chrysler-still-thinks-merging-with-gm-a-good-idea/#commentsFiled under: , ,



General Motors may have put a merger with Chrysler in its rear view mirror, but the Pentastar apparently thinks a tie-up might still be a good idea. Chrysler called a potential pairing with the General the "best option" for the Auburn Hills, MI-based automaker, saying that it would reap five times the benefit of a Fiat merger. Chrysler pointed out in its viability report to the U.S. government that the two companies would have more purchasing power, the deal would generate $36 billion in cash and another $40 billion in operating earnings.

Barclays analyst Brian Johnson points out that Chrysler is pushing for industry consolidation, saying that Chrysler feels a GM merger "would create more value than a standalone Chrysler or Fiat alliance." That has to make Fiat feel all warm and fuzzy inside. Tennessee Senator and domestic automaker critic Bob Corker agrees that a merger is in Chrysler's best interests, but questions whether a partnership is in the best interests of GM.

If it seems odd to you that Chrysler would angle for a GM merger in its official report, we're with you. For starters, GM, which initially appeared to be in favor of a merger, pulled the idea off the table back in 2008. Next, consider the fact that both automakers find themselves saddled with too many workers, too much capacity and a glut of dealers. Oh, and both companies need government loans just to stay in business past the end of the first quarter of 2009. Add to that the fact that GM's plan apparently mentioned nothing of a merger, only cuts to brands, workers, plants and dealers, or in other words, downsizing wherever possible.

[Source: Detroit Free Press, Photo by Brendan Hoffman/Getty]

Chrysler still thinks merging with GM a good idea originally appeared on Autoblog on Fri, 20 Feb 2009 11:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bailoutchryslergmgovernment loansgovernment moneyGovernmentLoansGovernmentMoneymergerFri, 20 Feb 2009 11:30:00 EST<![CDATA[Chrysler/Nissan partnership frozen, Ram-based Titan and Chrysler small car in jeopardy]]>http://www.autoblog.com/2009/02/13/chrysler-nissan-partnership-frozen-ram-based-titan-and-chrysler/http://www.autoblog.com/2009/02/13/chrysler-nissan-partnership-frozen-ram-based-titan-and-chrysler/http://www.autoblog.com/2009/02/13/chrysler-nissan-partnership-frozen-ram-based-titan-and-chrysler/#commentsFiled under: , , ,



Times are tough all over the auto industry, but the situation at Chrysler seems to be far more dire. Chrysler's sales numbers are significantly worse than they are elsewhere in the industry, with January sales plunging by 55%. In December, the Pentastar received $4 billion from the U.S. government to keep from going insolvent. Very little good news has trickled out of Auburn Hills as of late, and that isn't changing today.

Chrysler and Nissan have decided to freeze their product sharing program indefinitely, citing a need to make sure profit targets can be met. Chrysler was to receive its own version of the Nissan Versa, and in exchange, Nissan was to receive its own version of the Dodge Ram. As disappointing as this news is for Chrysler and Nissan, few are likely surprised. Nissan, while healthier than Chrysler, is going through its own rough patch, with a loss expected for the year and 20,000 job cuts on the way.

Chrysler's potential tie-up with Fiat could also complicate matters, as Chrysler stands to have access to several of the Italian automaker's small cars. Chrysler said in a statement that the tie-up is reportedly on hold until the end of the first quarter, when a further announcement will be made. Considering the woeful market conditions around the world, we're not at all hopeful that the Nissan/Chrysler tie-up will be revived. We're still holding out hope for a Dodge Hornet, though, with either Fiat or Nissan underpinnings. Thanks for the tip, Brian!

[Source: CNN Money]

Chrysler/Nissan partnership frozen, Ram-based Titan and Chrysler small car in jeopardy originally appeared on Autoblog on Fri, 13 Feb 2009 09:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>chryslerdodge ramDodgeRamfiatmergernissanram pickupRamPickuptechnology sharingTechnologySharingtieupversaFri, 13 Feb 2009 09:00:00 EST<![CDATA[Fiat-PSA Merger: In the cards or off the table?]]>http://www.autoblog.com/2009/01/27/fiat-psa-merger-in-the-cards-or-off-the-table/http://www.autoblog.com/2009/01/27/fiat-psa-merger-in-the-cards-or-off-the-table/http://www.autoblog.com/2009/01/27/fiat-psa-merger-in-the-cards-or-off-the-table/#commentsFiled under: , , ,



Everybody remembers the first two rules of Fight Club. But what about the rest of them? Like the fourth rule: "Only two guys to a fight," and the fifth rule: "One fight at a time, fellas." In mergers and acquisitions terms, only two parties to a merger, and one merger at a time. Well it looks like the fellas over at Fiat might want to watch the movie read the book over again, because they appear to have forgotten the rules.

Since parting ways with General Motors, Fiat has been looking for a new partner in which to form an alliance. Before the alliance with Chrysler surfaced, there were reported talks with French auto group PSA, parent company to both Peugeot and Citroen. It got to the point where even Italian and French government leaders were discussing how they could facilitate the deal. But once the Chrysler tie-up emerged, everyone assumed the PSA deal was dead in the water. Apparently not everybody, because even with the Chrysler deal inked, the latest reports suggest that certain elements within Fiat - namely the Agnelli family, its biggest shareholder - are still interested in merging with the French automaker. Fiat denies the possibility, while PSA had no comment. Even without taking Chrysler into account, the merger between PSA (Europe's second largest automaker) and Fiat (Europe's third largest) would put it in contention with Volkswagen for the largest in Europe and third largest in the world. Adding Chrysler's output to the equation could put the mega group within striking distance of Toyota and General Motors for the title of the world's largest automaker.

[Source: Detroit News]

Fiat-PSA Merger: In the cards or off the table? originally appeared on Autoblog on Tue, 27 Jan 2009 09:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>ChryslerCitroenfiatfiat chryslerfiat citroenfiat peugeotfiat psafiat psa chryslerfiat psa mergerFiatChryslerFiatCitroenFiatPeugeotFiatPsaFiatPsaChryslerFiatPsaMergerFight ClubFightClubmergerPeugeotTue, 27 Jan 2009 09:30:00 EST<![CDATA[Fiat and PSA Peugeot/Citroën to merge?]]>http://www.autoblog.com/2008/12/15/fiat-and-psa-peugeut-citroen-to-merge/http://www.autoblog.com/2008/12/15/fiat-and-psa-peugeut-citroen-to-merge/http://www.autoblog.com/2008/12/15/fiat-and-psa-peugeut-citroen-to-merge/#commentsFiled under: , , , , , ,


Two storied European nameplates might combine operations as rumors are flying that Fiat and PSA Peugeot/Citroën may find the road to future profits easier to travel together. The first rumblings of potential trouble at Fiat came when its CEO Sergio Marchionne suggested his company's future looked bleak without a major partner and that there was only room for six global automakers in his estimation. Now, according to Italian newspaper Milano Finanza, leaders of both Italy and France have discussed a possible tie-up between the two companies.

Both countries are said to be considering offering financial aid packages to their respective home-grown automakers, and a merger may be seen as another way of ensuring their future viability. Although the two automakers specialize in small cars and therefore have many overlapping products, the only joint-ventures currently shared between them are for commercial vehicles and MPVs. If the two Euro giants were to merge, the resulting company would roughly match the size of Nissan/Renault and Volkswagen.

[Source: Reuters]

Fiat and PSA Peugeot/Citroën to merge? originally appeared on Autoblog on Mon, 15 Dec 2008 08:32:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>citroenfiatfiat citroen peugeotFiatCitroenPeugeotmergerpeugeotpsapsa peugeot citroenPsaPeugeotCitroenMon, 15 Dec 2008 08:32:00 EST<![CDATA[Chrysler stops talks with Nissan/Renault in favor of GM]]>http://www.autoblog.com/2008/11/03/chrysler-stops-talks-with-nissan-renault-in-favor-of-gm/http://www.autoblog.com/2008/11/03/chrysler-stops-talks-with-nissan-renault-in-favor-of-gm/http://www.autoblog.com/2008/11/03/chrysler-stops-talks-with-nissan-renault-in-favor-of-gm/#commentsFiled under: , , ,



If Cerberus is ever going to shed itself of Chrysler, it looks like a deal will happen with soon-to-be former rival General Motors. Automotive News is reporting that no further talks have been scheduled between Nissan/Renault and the Auburn Hills-based automaker, as Cerberus has determined that the General can provide a sweeter deal that may also be better for the auto industry. It doesn't help that Nissan/Renault CEO Carlos Ghosn has decried that a deal between the two doesn't make sense during these shaky economic times.

We've never been at the table of a multi-billion dollar negotiation before, but we're pretty sure it's better to be sitting across the table from more than one company that wants what you've got. At this point, the once preposterous idea of GM merging with/buying/devouring Chrysler seems likely, and only a presidential election and a few billion dollars stand in the way of its completion.

[Source: Automotive News, sub. req'd]

Chrysler stops talks with Nissan/Renault in favor of GM originally appeared on Autoblog on Mon, 03 Nov 2008 13:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>carlos ghosnCarlosGhosnchrysler buyoutchrysler llcchrysler merger gmchrysler merger nissanChryslerBuyoutChryslerLlcChryslerMergerGmChryslerMergerNissanmergernissanrenaultnissanMon, 03 Nov 2008 13:59:00 EST<![CDATA[Cerberus attempting to buy remaining stake in Chrysler from Daimler]]>http://www.autoblog.com/2008/10/17/cerberus-attempting-to-buy-remaining-stake-in-chrysler-from-daim/http://www.autoblog.com/2008/10/17/cerberus-attempting-to-buy-remaining-stake-in-chrysler-from-daim/http://www.autoblog.com/2008/10/17/cerberus-attempting-to-buy-remaining-stake-in-chrysler-from-daim/#commentsFiled under: ,

One aspect of the possible GM/Chrysler merger often overlooked is that Daimler didn't completely divest itself of its Chrysler ownership back in early 2007, and the German automaker's 19.9% stake could get in the way of any deal. Daimler has been clear that it is disinterested in becoming part of some Detroit super conglomerate, and Automotive News is reporting that Cerberus is close to a deal to buy up the remaining 19.9% stake. Also part of the rumor mill is possible involvement with Renault/Nissan, which has been actively working with Chrysler on collaboration projects in the past year.

According to CNBC, the merger of GM and Chrysler could be complete within the next two weeks, but with neither of the two parties talking, it's all speculation at this point. Recent reports from the Wall St. Journal and CNN say that talks are rapidly accelerating, so there could be more to Chrysler/GM talks than we'd originally thought. Then again, the Internets have been wrong before.

[Source: Automotive News subs req'd]

Cerberus attempting to buy remaining stake in Chrysler from Daimler originally appeared on Autoblog on Fri, 17 Oct 2008 19:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>cerberuschryslerchrysler gm mergerChryslerGmMergergmmergerFri, 17 Oct 2008 19:58:00 EST<![CDATA[Surprise: UAW would be against merger]]>http://www.autoblog.com/2008/10/15/surprise-uaw-would-be-against-merger/http://www.autoblog.com/2008/10/15/surprise-uaw-would-be-against-merger/http://www.autoblog.com/2008/10/15/surprise-uaw-would-be-against-merger/#commentsFiled under: , ,

In an announcement that should be anything but shocking to anyone who even remotely follows the auto industry, United Auto Workers head Ron Gettelfinger says he and the UAW would be against any merger between automakers that would reduce either company's workforce. Considering that the Union's main job as of late has been safeguarding the jobs of its members, we would expect nothing less than an all-out war between Gettelfinger and the automakers involved, if such a merger were to take place, as much of the potential money savings would undoubtedly be in duplicate workforce reductions. In any case, Gettelfinger says that the UAW has not officially been contacted by either party regarding anything of the sort, lending further credence to the notion that any talks that are currently taking place are very much in the early stages.

[Source: The Detroit Free Press]

Surprise: UAW would be against merger originally appeared on Autoblog on Wed, 15 Oct 2008 09:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>chryslermergerron gettelfingerRonGettelfingeruawunionunited auto workersUnitedAutoWorkersWed, 15 Oct 2008 09:29:00 EST<![CDATA[In addition to Nissan/Renault, Chrysler has been talking with Tata, Fiat]]>http://www.autoblog.com/2008/10/14/in-addition-to-nissan-renault-chrysler-has-been-talking-with-ta/http://www.autoblog.com/2008/10/14/in-addition-to-nissan-renault-chrysler-has-been-talking-with-ta/http://www.autoblog.com/2008/10/14/in-addition-to-nissan-renault-chrysler-has-been-talking-with-ta/#commentsFiled under: , , , , , , , ,

Bob Nardelli, Chrysler's current CEO, has given his employees the closest thing to an admission as we are likely to see that the company has been in serious negotiations with other automakers regarding future product plans and possibly even mergers. As has been widely reported over the weekend, Chrysler has apparently had discussions with General Motors regarding a tie-up between the two automakers, and the rumormill is churning away with stories that GM isn't the only suitor. Carlos Ghosn already has a history of merging automakers, and his Nissan/Renault partnership has naturally been recalled as a possible mate with Chrysler, as have Fiat and Tata Motors.

Remember that there's nothing concrete here to report, just speculation. At this point, all we know is that Nardelli admits that there are "third parties who are interested in exploring future possibilities with Chrysler" and that "as the company evaluates strategic options to maximize core operations and leverage its assets, we engage in a dialogue with these parties." Sounds pretty vague, wouldn't you say? These talks can be routine or they could be much more. We'll just have to keep an interested eye on the news.

[Source: The Detroit News]

In addition to Nissan/Renault, Chrysler has been talking with Tata, Fiat originally appeared on Autoblog on Tue, 14 Oct 2008 19:31:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>chryslerchrysler mergerChryslerMergerfiatgmmergernissanrenaulttata motorsTataMotorsTue, 14 Oct 2008 19:31:00 EST