Autoblog

Fiat and PSA predicted to be Europe's biggest losers in 2013

Michael Harley — Thu, 17 Jan 2013 10:45:00 EST

Filed under: Chrysler, Earnings/Financials, Peugeot, Citroën, Fiat

Industry observers are expecting Europe's new vehicle sales to fall to lows not seen in decades, with Fiat and PSA/Peugeot-Citroën sitting in the lead car of the plummeting coaster. Both of those automakers traditionally count on the southern part of the continent for sales, yet consumers in that region have slowed spending due to the financial crisis.

Compounding the problem for Fiat is a lack of new product, as CEO Sergio Marchionne has stalled development to conserve cash during the downturn. PSA has invested in new vehicles, but aggressive price wars have forced it to sell its product with steep discounts. Making matters even more difficult, both companies may have their credit ratings cut this year. That would raise borrowing costs and only deepen the wounds.

The news isn't just bad for Fiat and PSA. Analysts are predicting that volume automakers in Europe lost 8 billion euros (about $10.68 billion in today's rates) overall in 2012, and they won't break even until mid-decade.

Fiat and PSA predicted to be Europe's biggest losers in 2013 originally appeared on Autoblog on Thu, 17 Jan 2013 10:45:00 EST. Please see our terms for use of feeds.

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EU formally questions French government assistance of Peugeot's finance arm

Jonathon Ramsey — Fri, 28 Dec 2012 07:57:00 EST

Filed under: Europe, Government/Legal, Earnings/Financials, Renault, Peugeot, Citroën

Recently, the finance arm of PSA/Peugeot-Citroën was in such debt trouble that it was pricing itself out of the car loan market. The rates it was paying to service its debt, which was rated one step above junk, were so high that it was forced to charge car-buying customers higher rates than they could find elsewhere. This was adding to Peugeot's already impressive woes by sending revenue out the door to competitors.

Two months ago a deal was worked out with the French government whereby the state would provide 7 billion euro ($9 billion USD) in bonds to guarantee the finance arm's loans. The French government could nominate someone to join the Peugeot board, Peugeot would guarantee more French jobs, and on top of that deal, other banks would provide non-guaranteed loans. The government would take no equity stake in the car company.

Although not yet finalized, the arrangement is meant to create some breathing room for Peugeot Finance to lower its interest rates for customers, and a government-nominated board member, Louis Gallois, was recently named to Peugeot's supervisory board. The arrangement was also openly questioned by at least three competitors: Ford, Renault - which is 15-percent owned by the French government after it received state aid - and the German state of Lower Saxony, itself a 15-percent shareholder in Volkswagen.

Now the European Union, responding to "an unidentified Peugeot competitor," has challenged the terms of the deal, calling it state aid, which is a no-no. There was a lot of parsing-of-words at the time the potential deal was announced: Peugeot said it wasn't state aid, it was state support; Ford of Europe said it didn't think government support of companies was sustainable, making no mention that Ford Credit did receive federal aid at the beginning of our own economic crisis; and the irony of Renault and the German state's complaints was apparently lost in their outrage.

The EU has requested official notification of the deal, which is the prelude before Brussels begins a full investigation into the matter, and that could raise the cost of the deal. The government doesn't think an investigation is warranted since the funds only go to the finance arm and the loan is being made at market rates. Peugeot, on the other hand, has apparently been prepared for such an eventuality and is working with Brussels on the matter. The deal, if it closes, should be concluded early next year.

EU formally questions French government assistance of Peugeot's finance arm originally appeared on Autoblog on Fri, 28 Dec 2012 07:57:00 EST. Please see our terms for use of feeds.

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GM, Peugeot cease tie-up talks over French bailout issue

Jonathon Ramsey — Wed, 14 Nov 2012 10:33:00 EST

Filed under: Europe, Government/Legal, Plants/Manufacturing, GM, Earnings/Financials, Opel, Peugeot, Citroën

The partnership General Motors (via Opel) and PSA Peugeot/Citroën began in February has produced more declarations and revisions than easily identifiable positive movement. A deeper collaboration between Opel and Peugeot has been mentioned a few times, perhaps even a sale of one to the other, and a report in October laid out joint plans like a small MPV for Opel/Vauxhall, a small car for both Opel and Citroën and two new platforms for small and midsize cars.

What observers can't glean from the proclamations is how all this can happen with Peugeot in constant, and worsening, financial trouble. The French company just accepted a bailout from the French government, the cash position at its lending arm so bad that the interest rates it had to charge were pricing it out of the car-loan market, and a new report in Reuters says that Peugeot is losing $200 million per month.

That cash-burn rate is better than a few months ago, but the Reuters report explains that the French government loan is "sabotaging" any chance of a closer tie-up between the two companies, said to include the possibility of "a full combination of Peugeot with GM's European unit Opel." That particular option, with a $5-billion buy-in from GM, could have allowed GM to get Opel off its books by making it part of a separate entity. The French government's terms for the loan, however, mean that Peugeot can't shed workers and factories as it would need to in order to make the new entity, and any deeper ties with Opel, viable.

Beyond that, the plan to jointly develop a small car for Peugeot in Brazil has been shelved, Peugeot has left Iran, it's second largest global market, and has given up ties on other technology projects with Ford and BMW. GM has no interest in other Peugeot initiatives like a push into India and rechargeable hybrids. It's said that more cooperation between the two will have to wait for a turnaround in the European market, expected in 2014.

GM, Peugeot cease tie-up talks over French bailout issue originally appeared on Autoblog on Wed, 14 Nov 2012 10:33:00 EST. Please see our terms for use of feeds.

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Ford, Renault, VW shareholder oppose French aid for PSA/Peugeot-Citroën

Jonathon Ramsey — Mon, 29 Oct 2012 14:01:00 EST

Filed under: Europe, Government/Legal, Plants/Manufacturing, Earnings/Financials, Peugeot, Citroën

Pots and kettles, glass houses and stones - that's a little of what we appear to have going on in the European car market. New reports say that that three European automakers have registered their opposition to a loan deal that PSA/Peugeot-Citroën is working on with the French government. Peugeot's finance arm, Banque PSA Finance, is struggling with its debts and has been downgraded by Moody's to its lowest investment-grade classification, one step above junk. This makes it more expensive for a potential buyer to finance a car through Peugeot. The last thing Peugeot needs is more difficulty selling cars in the tough European market, and the situation will only worsen if the bank's credit worthiness takes another hit.

A deal being worked on would have the French government offer €7 billion ($9B U.S.) in bonds to guarantee the bank's loans, which would give the institution some breathing room to manage its debts and lower its interest rates. Outside of that, a group of banks would provide other, non-guaranteed loans to the bank to further help its position. In exchange for state help, though, the government wants seats on Peugeot's board for worker representatives and a government liaison, along with factory and worker guarantees. The Peugeot family would maintain control of the company.

So what we have is government assistance being provided to a car company's finance arm, akin to the way General Motors' GMAC (now Ally Financial) and Chrysler Financial got help in their time of need. What we also have is Ford and Renault, and Germany's State of Lower Saxony, the second-largest shareholder in Volkswagen, voicing their concern about the proposal, because they say it could create an unfair competitive advantage for Peugeot. Everyone in Europe's down market is fighting for every sale, and if Peugeot gets help to keep its auto loan costs down, it figures to help buyers choose Peugeot or Citroën.

Still, after four years of corporations openly begging for funds from governments, it seems disingenuous for Ford of Europe's CEO Stephen Odell to say "I don't think it's sustainable for support from governments to keep competitive companies going forward, particularly in a protracted downsized economy." Industry watchers will remember that during the US auto industry crisis, Ford didn't receive federal TARP funds, but it did receive low-interest technology loans from the US government and it endorsed TARP support for GM and Chrysler.

For its part, Renault says it is keeping an eye on the situation, and a rep from Lower Saxony said he might refer the issue to the European Union for review. In reply, a Peugeot executive said "It's not state aid, it's state support," which is the kind of slicing-things-thin that's perhaps better used for carpaccio than for dealing with the European car market situation.

Ford, Renault, VW shareholder oppose French aid for PSA/Peugeot-Citroën originally appeared on Autoblog on Mon, 29 Oct 2012 14:01:00 EST. Please see our terms for use of feeds.

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GM and PSA detail four new co-developed vehicle projects

George Kennedy — Wed, 24 Oct 2012 10:30:00 EST

Filed under: Europe, Plants/Manufacturing, GM, Peugeot, Citroën

New details have emerged this morning regarding a partnership between General Motors and PSA Peugeot-Citroën. Following talks that started back in February, the American and French automakers will apparently team up to develop several vehicles, including a small MPV for Opel/Vauxhall and a compact crossover for Peugeot. Also planned is a small car for both Opel and Citroën.

Additionally, the two companies will co-develop a low-CO2-emitting small car platform to underpin the next generation of Opel and PSA models. The detailed plans call out a midsize platform to be shared between Opel/Vauxhall and Peugeot/Citroën.

As much as $2 billion in savings are expected in the next five years as a result of this venture. In a statement from GM and PSA, "All four projects will be developed combining the best platform architectures and technologies from alliance partners."

"Beyond this, PSA and GM are currently sounding out whether to extend the cooperation potentially to other fields," a GM representative told Automotive News Europe. The first vehicles developed from this joint venture are expected by the end of 2016. GM's official press release on the partnership can be found below.

Continue reading GM and PSA detail four new co-developed vehicle projects

GM and PSA detail four new co-developed vehicle projects originally appeared on Autoblog on Wed, 24 Oct 2012 10:30:00 EST. Please see our terms for use of feeds.

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GM pondering even closer Opel joint venture with PSA Peugeot Citroën

Jonathon Ramsey — Sat, 13 Oct 2012 17:30:00 EST

Filed under: Europe, Government/Legal, Plants/Manufacturing, GM, Earnings/Financials, Opel, Peugeot

Let's face it, even when they go well, partnerships rarely go as planned. Almost eight months after General Motors spent $423 million to snag seven percent of Peugeot, we on the outside are still wondering what the plan is. When the tie-up was announced, the main benefits were listed as purchasing power and platform sharing, and only a month after that, a deeper collaboration was discussed that would involve development of a dual-clutch transmission and a small car for Latin America.

We don't know what's come of it other than a potential write-down and Peugeot continuing to take a beating, but Reuters reports that the first phase of the venture is complete and now the two companies are working on more involvement for the second phase. A French newspaper report says one option for advancement would be the two companies becoming 50-50 partners, with GM kicking in more money for the privilege of doing so. Neither side would comment, but according to one Reuters source, the options on the table have also included "selling Opel to Peugeot, buying Peugeot's automotive business or putting them all together in a new entity."

If Peugeot bought Opel or vice versa, that would make sense - but only for the seller, who could wash his hands of the misery. The buyer would then have two poorly performing brands with deep structural problems, huge cash requirements and two national governments chaperoning its moves. We're not sure how the other possibilities mentioned could help Peugeot or Opel out of their quandaries, but we know something has to happen so it's likely we'll hear more soon enough.

GM pondering even closer Opel joint venture with PSA Peugeot Citroën originally appeared on Autoblog on Sat, 13 Oct 2012 17:30:00 EST. Please see our terms for use of feeds.

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France unveils green incentive to rescue auto industry

Jonathon Ramsey — Sun, 29 Jul 2012 15:02:00 EST

Filed under: Hybrid, Europe, Government/Legal, Plants/Manufacturing, Peugeot, Citroën, Electric

PSA Peugeot Citroën and the French goverment have been negotiating how to repair the company's business position without ruining the new government's promises to the electorate. At last count, Peugeot wants to send 14,000 workers home for good, close a factory in Aulnay, and trim some of its 25% overcapacity. The automaker desperately wants to sell more cars to help it stop losing €200 million ($246M U.S.) per month. The government has already nixed the most drastic plans, but it needs to keep Peugeot from drowning at the same time as doing so saves jobs, encourages domestic car sales, and balances a nasty state budget. In addition, any maneuver needs to keep the EU's competition watchdog from intervening.

Dow Jones reports that the solution involves increasing cash incentives for EV and hybrid purchases and raising taxes on "high emission vehicles." France already provides a €5,000 subsidy for EVs and €2,000 for hybrids, but those will see a €2,000 bump to €7,000 and €4,000, respectively. The CO2 output or engine displacement that would qualify a vehicle as "high emission" isn't stated. Supplemental and longer-term plans include asking the EU to examine a free-trade agreement with South Korea that France says has resulted in a glut of South Korean cars, and providing €600 million in lifelines to smaller, struggling automaker suppliers.

From our perspective, the measures look like more of the same largely-useless pussyfooting that has kept Europe staring at the economic apocalypse for more than two years. In a New York Times article about Europe's "day of reckoning," Fiat and Chrysler CEO Sergio Marchionne said, "I've never seen it this bad. All the unresolved issues that have been plaguing the industry for a number of years have all come forward."

Austerity measures on top of the general European economy are keeping buyers away, and we have no idea how another €2,000 on the hood is supposed to spur enough demand for EVs and hybrids to help Peugeot and Citroën. Even if they tripled their sales numbers, they'd still be niche vehicles.

The problem right now is that in 30 days Peugeot will be another €200 million in the hole, and neither the company nor the government can allow that to continue, else they'll both be taking even bigger lumps soon enough.

France unveils green incentive to rescue auto industry originally appeared on Autoblog on Sun, 29 Jul 2012 15:02:00 EST. Please see our terms for use of feeds.

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France's finance minister says Peugeot job cut plan "isn't acceptable"

Jonathon Ramsey — Tue, 17 Jul 2012 08:31:00 EST

Filed under: Europe, Government/Legal, Hirings/Firings/Layoffs, Plants/Manufacturing, Earnings/Financials, Peugeot

As expected, the French government issued a firm "Not so fast" to Peugeot's desire plan to shutter a plant in Aulnay, France and get rid of jobs. The plant closure has been in discussion for a while, but the layoff headcount has been rising every time it gets reported, going from 6,000 to 8,000-10,000, and now reaching 14,000 workers that Peugeot wants to shed.

Both Peugeot-Citroën and Renault received billions from the French government during the financial crisis, the quid pro quo being that the companies wouldn't close factories and eliminate jobs. The companies' business positions aren't much better now, with Peugeot's overcapacity touching 25 percent. Sound business practice would dictate getting rid of assets dragging on the balance sheet, but the company remains bound by the deal it made the with the French government.

Nevertheless, the government knows that Peugeot has to do something - a carmaker that drags on state resources while sinking with every job intact is still no good to anyone. So even though French President Francois Hollande has said he wants to rework Peugeot's stated aims and French finance minister Pierre Moscovici said the plan "isn't acceptable" as is, Moscovici elaborated on that by saying "We are here to find solutions," and "I'm here to build."

The idea is to assure everyone that Peugeot's straightjacket will be loosened a bit, even if it's not free to do completely as it wishes. But it also sounds like the French government is getting ready to open the door to worker redundancies - not 14,000 of them, but it seems inevitable that a fair number of jobs will have to go.

France's finance minister says Peugeot job cut plan "isn't acceptable" originally appeared on Autoblog on Tue, 17 Jul 2012 08:31:00 EST. Please see our terms for use of feeds.

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Peugeot-Citroën raises cash by selling its Paris headquarters

Jeff Sabatini — Tue, 03 Apr 2012 18:29:00 EST

Filed under: Europe, Earnings/Financials, Peugeot, Citroën

You know things are rough when you have to sell your corporate headquarters to raise some cash. But that's just what PSA Peugeot-Citroën did this week, unloading its Parisian office building for about $327 million, according to Automotive News.

The 48-year-old headquarters is located in Paris' central business district, not far from the Arc de Triomphe and the Champs-Elysees. According to the report, the French carmaker will continue to lease the building from its new owner, Ivanhoe Cambridge, a real estate subsidiary of Canadian pension fund management company Quebec Deposit and Investment Fund.

This latest move follows several efforts by PSA Peugeot-Citroën to reduce debt, cut costs and boost profitability. Last fall, it cut 6,000 jobs and in January it pulled out of Le Mans racing. In February, it announced a plan to liquidate assets and agreed to sell a seven-percent stake to General Motors, as part of a new global alliance that could help both car companies trim costs through shared purchasing.

Peugeot-Citroën raises cash by selling its Paris headquarters originally appeared on Autoblog on Tue, 03 Apr 2012 18:29:00 EST. Please see our terms for use of feeds.

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Peugeot suggests expansion of ties with GM into other segments and technology

Jonathon Ramsey — Wed, 28 Mar 2012 08:28:00 EST

Filed under: Europe, Plants/Manufacturing, GM, Opel, Peugeot

The ink is only just dry on the contract detailing the collaboration between General Motors and PSA Peugeot Citroën, and already there is talk of going further. GM purchased a seven-percent stake in PSA to form an alliance that would work together on platforms, small and midsize cars, and MPVs and crossovers, the aim being to strengthen the positions of PSA and Opel. Plans include moving the Opel Corsa to a Peugeot platform, while the Citroën C5 and Peugeot 508 move to GM platform technology.

Peugeot had announced the €220-million development of a dual-clutch transmission that was to be built at its Valenciennes, France factory but just shuttered the project saying it might get them from GM instead. The company also spoke of developing a new small car with GM for the Latin American market.

Another development has been the rearrangement of factory closures. When the deal was announced analysts said that the real issue for Opel and PSA was surplus plant capacity, but one report in Reuters said that plant closures wouldn't be affected by the tie-up. Apparently that's not the case, with an unnamed source telling Reuters in a second story that plant closures were a piece of the deal from the beginning. Peugeot has announced that it wouldn't produce a new small car at its plant in Madrid, Spain, but it won't detail its plant closures until after the French presidential election later this year.

Peugeot suggests expansion of ties with GM into other segments and technology originally appeared on Autoblog on Wed, 28 Mar 2012 08:28:00 EST. Please see our terms for use of feeds.

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GM buys 7% stake in PSA Peugeot Citroën, creates global platform-sharing alliance

John Neff — Wed, 29 Feb 2012 12:29:00 EST

Filed under: Europe, GM, Opel, Peugeot, Citroën

General Motors has finally made a move to help its ailing European operations by tying its fortunes on the continent with those of PSA Peugeot Citroën. The two automakers have agreed to a new global alliance in which GM will buy a seven-percent stake in PSA, thereby making it the European automaker's second largest shareholder behind the Peugeot family itself. The shares won't give GM any governance rights over PSA, and the two companies will remain competitors in Europe.

What the alliance will give each company is the ability to share vehicle platforms, components and modules, as well as stronger purchasing power for sourcing components, raw materials and other goods and services. They're combined annual purchasing volume together will be approximately $125 billion. The vehicle platforms most likely to be shared will be small and midsize passenger cars, MPVs and crossovers, with the first one arriving by 2016.

GM says that synergies resulting from the alliance will save approximately $2 billion annually within about five years, though critics argue the alliance doesn't address the main problem plaguing automakers in Europe: overcapacity. While the alliance does give a shot in the arm to both Opel, GM's European subsidiary, and Peugeot, analysts and investors alike still believe that plant closings and consolidations are the remedy required for Europe's struggling automakers. Full details in the press blast after the jump.

Continue reading GM buys 7% stake in PSA Peugeot Citroën, creates global platform-sharing alliance

GM buys 7% stake in PSA Peugeot Citroën, creates global platform-sharing alliance originally appeared on Autoblog on Wed, 29 Feb 2012 12:29:00 EST. Please see our terms for use of feeds.

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Citroën C1 / Peugeot 107 twins refreshed

Zach Bowman — Thu, 05 Jan 2012 14:29:00 EST

Filed under: Budget, Europe, Hatchback, Misc. Auto Shows, Peugeot, Citroën, Design/Style

Citroën and Peugeot have released the first volley of information and images on their refreshed C1 and 107 runabouts. The Citroen C1 will bow with a new face, complete with a shorter hood, redesigned foglamp housings and new LED daytime running lights. The vehicle's rear valance has also received a few design touches to differentiate it from the previous year model. Buyers can expect to find the same 68-horsepower three-cylinder gasoline engine bolted to a manual transmission under the hood.

Not surprisingly, its mechanical twin, the Peugeot 107, has received a similar once over. Designers have graced the three-door with a reworked front fascia that features a new front bumper, foglight housings and LED daytime running lights, just like its Citroën cousin. Peugeot will also offer the 107 in three trim levels: Access, Active and Allure.

The Citroën C1 will be on display at the Brussels Motor Show starting on January 10, and it's probably fair to assume the Pug will make the scene there as well. Hit the jump for press releases on both of these small hatchbacks.

Continue reading Citroën C1 / Peugeot 107 twins refreshed

Citroën C1 / Peugeot 107 twins refreshed originally appeared on Autoblog on Thu, 05 Jan 2012 14:29:00 EST. Please see our terms for use of feeds.

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Report: PSA may withold hybrid vehicles in China over intellectual property concerns

Jeremy Korzeniewski — Fri, 08 Oct 2010 16:31:00 EST

Filed under: Hybrid, China, Government/Legal, Technology, Peugeot, Citroën, Diesel

Peugeot 3008 Hybrid4 - Click above for high-res image gallery

Cracking the burgeoning Chinese automobile market is a challenge that nearly every automaker in the world is currently grappling with. Among the myriad reasons why the Chinese nut is a tough one to crack is that the government has set strict regulations and laws that must be met before it will approve of any automaker doing business within its borders.

For instance, no foreign automaker is allowed access into the country without first partnering up with a local manufacturer from China. Naturally, that means sharing a great deal of resources and technology - and that presents a big problem with you're dealing with cutting-edge products that you've spent a ton of time and money developing.

PSA Peugeot Citroën is the latest automaker to express concerns with the notion that its intellectual property must be handed over to its Chinese partners, Dongfeng Motor Group and Changan Automotive. Problem is, to sell in China, Hybrid4 technology must also be in the hands of Dongfeng and Changan, which is something PSA isn't keen on. "The Chinese government will have to reconsider its position," according to PSA Chief Financial Officer Frederic Saint Geours. Sounds unlikely, but we'll see.

Gallery: Peugeot 3008 Hybrid4

[Source: Automotive News China - sub. req'd.]

Report: PSA may withold hybrid vehicles in China over intellectual property concerns originally appeared on Autoblog on Fri, 08 Oct 2010 16:31:00 EST. Please see our terms for use of feeds.

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Mitsubishi giving Peugeot/Citroën version of ASX

Zach Bowman — Wed, 28 Apr 2010 18:00:00 EST

Filed under: Budget, SUV, Europe, Plants/Manufacturing, Mitsubishi, Peugeot, Citroën, Diesel

Mitsubishi ASX - Click above for high-res image gallery

Mitsubishi, Citroen and Peugeot have announced a partnership that should have a new small SUV in French show rooms by early 2012. The Japanese automaker has agreed to share its ASX platform with PSA Peugeot Citroen in an effort to move more models for everyone involved. Mitsubishi says that while it is providing the bare bones for the project, respective models from the two European automakers will incorporate unique bodywork as well as their own engine.

While the French-Japanese creation will use a 1.6-liter diesel four-cylinder culled from the PSA Citroen Peugeot parts bin, buyers will be able to choose between front-wheel and four-wheel drive models.

The partnership should move an additional 50,000 platforms out of Mitsubishi's doors and onto the streets of Europe. PSA Peugeot Citroen believes the small SUV segment will explode in the near future, with sales leaping by as much as 60 percent by 2015. Hit the jump to see the full press release.

Gallery: Mitsubishi ASX

Gallery: Geneva 2010: Mitsubishi ASX

[Source: Mitsubishi]

Continue reading Mitsubishi giving Peugeot/Citroën version of ASX

Mitsubishi giving Peugeot/Citroën version of ASX originally appeared on Autoblog on Wed, 28 Apr 2010 18:00:00 EST. Please see our terms for use of feeds.

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Report: Peugeot, Citroën get new design chiefs

Jonny Lieberman — Sat, 09 Jan 2010 11:37:00 EST

Filed under: Europe, Peugeot, Citroën, Design/Style

Hope for France: Left to right, Gilles Vidal, Jean-Pierre Ploué and Thierry Metroz

There was a time when "France" and "design" were nearly synonymous, at least in the automotive sphere. Delahaye, Voisin, Bugatti, Talbot-Lago (including the high-water mark Figoni et Falaschi "Tear Drop" cars), etc. Prewar, no one had anything on the French. Even Peugeot and Citroën were in on the action; the former producing the elegant 402 and the latter building the glorious Traction Avant.

However, after the Great Depression and post-WW2 auto shakeout, the scenery changed. Sure, Citroën still had a few design masterpieces left in the tank - the 2CV, the DS and SM. Peugeot made some excellent cars (205, 404) but they certainly weren't lookers. Then a few years back, Peugeot bought Citroën. Since that time, Peugeots have become wildly bizarre-looking, while Citroën has produced exactly one beauty, the C6. Point being, France's automotive designs are a far cry from their prewar glory days.

PSA Peugeot Citroën wants to change that trajectory. Under PSA design leadership of Jean-Pierre Ploué, Gilles Vidal has taken over design of Peugeot and Thierry Metroz is now in charge of how Citroëns look. Metroz might have an easy time of it, as Ploué has to some degree set Citroën on a halfway righteous path. Again, we're big fans of the big C6 and in truth, the C3 and DS3 are pretty much OK-looking as well. Monsieur Gilles, however, has his work cut out for him. Have you looked at a 3008 or an 807 lately? Not so hot.

[Source: CAR]

Report: Peugeot, Citroën get new design chiefs originally appeared on Autoblog on Sat, 09 Jan 2010 11:37:00 EST. Please see our terms for use of feeds.

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Is Peugeot-Citroën on the verge of buying Mitsubishi?

Jeremy Korzeniewski — Fri, 04 Dec 2009 15:59:00 EST

Filed under: Hirings/Firings/Layoffs, Mitsubishi, Earnings/Financials, Peugeot, Citroën

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.

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Two Birds, Une Pierre: Peugeot to replace 407 and 607 with new 508

Noah Joseph — Mon, 23 Nov 2009 17:29:00 EST

Filed under: Sedan, Europe, Paris Motor Show, Peugeot

Peugeot RC HyMotion4 concept - Click above for high-res image gallery

The French may not be known for their efficiency as much as, say, ze Germans, but according to the latest reports from across the Pond, Peugeot is reportedly looking at merging two weak product lines into one new sedan. The models in question are the 407 and 607, two saloons that may intrigue from this side of the Atlantic but haven't exactly been runaway successes with those who can pick them up at their local dealership. As a result, parent company PSA's new president Philippe Varin has reportedly confirmed that both models will be integrated into one new successor to be called the 508.

The last time Peugeot used the 50X model designation was with the 505 of 1979. Although we have no idea at this point what the new 508 will be like, we're expecting it to be unveiled in concept form at the 2010 Paris Auto Salon before its production introduction at Geneva in 2011.

Gallery: Paris 2008: Peugeot RC HYmotion4 concept

[Source: Le Blog Auto]

Two Birds, Une Pierre: Peugeot to replace 407 and 607 with new 508 originally appeared on Autoblog on Mon, 23 Nov 2009 17:29:00 EST. Please see our terms for use of feeds.

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REPORT: Peugeot also wants ties with BMW that go beyond engines and platforms

Jonathon Ramsey — Tue, 27 Oct 2009 18:20:00 EST

Filed under: BMW, Peugeot

A couple of years ago, BMW said it wanted out of the joint engine game with Peugeot. Today, not only are the two companies still sharing powerplants - the PSA engines that go in the Mini and Pugs like the 207 - but BMW's head has recently stated that the automaker is considering sharing small car platforms with PSA. To that, PSA head Phillipe Varin has gone a step further, saying he'd also like to extend the agreement to things like purchasing, transmissions, and HVAC units.

The quest for Peugeot is to find a way to remain independent to continue to make money doing it. The French automaker expects an operating loss of up to €1.5 billion ($2.25B U.S.) this year, which is less than expected. But the company foresees a return to black next year, and part of the strategy for that would be lowering costs through tie-ups, such as its deal to sell rebranded Mitsubishi i-Mievs.

Nevertheless, it will be BMW that needs to see sense in a stronger PSA union. Items like HVAC units and transmissions - when they work - are anonymous; no one knows or really cares where they come from. As for powertrains, the German firm has spoken before of wanting to lower development costs, especially in the area of small engine development which could help it with its numerous small car initiatives.

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

REPORT: Peugeot also wants ties with BMW that go beyond engines and platforms originally appeared on Autoblog on Tue, 27 Oct 2009 18:20:00 EST. Please see our terms for use of feeds.

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REPORT: BMW considers sharing Mini platform with PSA Peugeot Citroën

Jeremy Korzeniewski — Wed, 05 Aug 2009 17:26:00 EST

Filed under: BMW, Mini, Peugeot, Citroën, Rumormill

Mini 50 Mayfair -- Click above for high-res image gallery

According to a report from Financial Times in the U.K., BMW may be in preliminary talks to share small car platforms for future Mini variants with PSA Peugeot Citroën. The two European automakers already share the range of small four-cylinder engines powering the Mini line, which seems to lend an air of credence to rumors of an expanded collaborative effort.

While stopping short of confirming the report, both BMW chief Norbert Reithofer and PSA head Philippe Varin have indicated a willingness to work together and have reportedly met twice so far since May. Whispers of platform sharing is nothing new for BMW these days - earlier this year, we again heard the oft-repeated rumor that BMW was working with Fiat on a shared platform for something even smaller than the regular-grade Mini, possibly as part of its long-rumored Isetta revival.

Gallery: MINI 50 Mayfair

[Source: Financial Times - Sub. Req'd]

REPORT: BMW considers sharing Mini platform with PSA Peugeot Citroën originally appeared on Autoblog on Wed, 05 Aug 2009 17:26:00 EST. Please see our terms for use of feeds.

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Peugeot releases first official teasers of 308 RC Z

Noah Joseph — Tue, 14 Jul 2009 10:29:00 EST

Filed under: Coupe, Peugeot

Peugeot 308 RC Z pre-production teasers - Click above for high-res image gallery

For a country so renowned for its style and fashion, you'd think France would have plenty of stylish automobiles on offer, but that's not necessarily the case. Though the country's hatchbacks and MPVs may look a touch sharper than the competition's, above that there's nothing especially stylish until you get to the seven-figure territory covered by such ultramobiles as the Bugatti Veyron and GTbyCitroen. Peugeot aims to fix that, though, with the 308 RC Z, though to some eyes it's design was influenced a bit too heavily by the Audi TT.

In case you've lost track by now, the 308 RC Z made its debut in concept form three long years ago. A lot has happened since then, including PSA's approval for the swept-roof coupe to enter production followed by recent spy shots demonstrating that its making good on its promise. And now Peugeot has released the first crop of teaser images showing the production-ready 308 RC Z. Tipped to carry the same jointly-developed turbocharged engine as the Mini JCW, the stylish Peugeot is expected to debut at the upcoming Frankfurt Motor Show in September.

Gallery: Peugeot 308 RC Z pre-production teasers

[Source: Autoblog Spanish]

Peugeot releases first official teasers of 308 RC Z originally appeared on Autoblog on Tue, 14 Jul 2009 10:29:00 EST. Please see our terms for use of feeds.

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