Posts tagged ‘PSA’


A couple of days before it became official: thoughts on PSA and FCA linking up

01.11.2019


Companies in FCA’s and PSA’s histories did once produce the Plymouth Horizon, so historically there is some precedent to a trans-Atlantic arrangement—not to mention the type 220 and 179 minivans and the commercial vehicles currently in PSA’s and Fiat’s ranges.

This is a few days old, but it’s nice to know that these hurriedly written thoughts on a private Facebook group reflected what I read a day later in the automotive press.

   Copied and pasted from the above (and yes, I know it should be e-208):

I read that as well, Jonathan. Elkann would be chairman and Tavares the CEO. I guess Fiat had to move on from talking with Renault while they have their internal squabbles. While some praise Marchionne, I thought it was foolish to let the less profitable marques suffer as he did—the global economy doesn’t stay buoyant all the time and at some point not everyone will want a hotted-up Alfa or Maserati. Especially as there seems to be no cohesive platform strategy. I think Fiat realizes the shambles it’s actually in despite what the share price says. There is some sense to have PSA platforms underpin a lot of Fiats (let’s face it, very little of the Fiat range is on a Fiat platform—there are GM, Mitsubishi, Mazda, Ford and PSA bits—and the old Grande Punto platform can only go so far), but the more premium marques will still have to have unique platforms.
   Fiat really needs to do some rationalization of its own before approaching others but my sense is that it’s gone too far down this road and has no investment in either next-generation B- (Jeep Renegade) or C-platforms (Giulietta) where a lot of European sales will still lie. Its only real prize here is Jeep.
   Tavares will be able to slash a great deal and Europe could look good quite quickly, but I doubt anyone has any focus on the US side of things other than Jeep. PSA has some limited experience in South America but it won’t be able to integrate that as easily. And neither has any real strength in China despite being early entrants, with, again, Jeep being the exception. (Peugeot, DS and Citroën are struggling in China.)
   He had claimed that PSA was looking at some sort of alternative retail model for the US, but it also seemed a bit far off.
   If this happens, I think Tavares will “do a Talbot” on anything Fiat-related in Europe, eventually killing the Fiat marque (with maybe just a 208e-based 500 remaining), and keep Alfa Romeo, Maserati and Jeep. Chrysler will remain with the Pacifica, Dodge might still have the Durango, but everything else would get the chop unless they consider bringing in a rebadged 508. Ram and Fiat Profissional will stay as separate entities. Fiat do Brasil will get some PSA tech. Then there might be some logic to what is left but I still feel Fiat has to get itself in order first.

   On reflection, maybe I was a little harsh on Sergio, as ignoring the mass-market brands has left FCA, with a portfolio of specialist and premium ones, a reasonably good fit for an organization that has the opposite set of strengths.
   One question remains: which is the cheap brand, the Plymouth, here? You can’t always go premium: sooner or later, economies weaken and people will want something entry-level. There may be wisdom to retaining Fiat in some shape or form. One more 108 variant can’t hurt …

Anyone notice a pattern here? That any company that owns Jeep eventually diminishes its own brand. Willys, Kaiser, AMC, Chrysler, and Fiat are either dead or no longer the forces they once were. Renault managed a controlling interest in AMC with 46·4 per cent in 1982, but that was bought by Chrysler five years later. At some stage, we must tire of these massive vehicles, and already there’s a suggestion that, in the US at least, nonconformist younger buyers are eyeing up sedans. Great if you’re Nissan in the US (and China), not so much if you’re Ford.

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Selling Opel: what’s good for China is good for General Motors

15.02.2017


Above: The Opel Astra K: on the roster.

I’m not so sure that GM going into talks to sell Opel and Vauxhall to PSA (Peugeot–Citroën) is that big a surprise.
   We obviously hold a lot of nostalgia for these brands, and it’s only right that we perceive GM as selling its family jewels. Opel has made some great cars over the years, and Buick in China and the US, Vauxhall in the UK, and Holden in Australia rely on this division to provide it with product.
   But it wasn’t long ago that I said I foresaw the next Holden Commodore being a four-door booted model based on a Chinese Buick Regal that’s on the same platform. While I’ve been proved wrong with scoop photos and inside information from journalists in the immediate term, longer-term this doesn’t look so far-fetched, in a future where Peugeot owns Opel–Vauxhall and GM has no choice but to consider Chinese sourcing seriously.
   Therefore, GM isn’t thinking that it’s selling off the family jewels, at least the GM where Chinese partner SAIC is overwhelmingly calling the shots.
   What they are thinking is this: ‘We should be able to develop the whole lot in China.’ They weren’t nostalgic over Holden, and they won’t be thrilled with the losses at Opel. It’s willing to sacrifice it to make its own position stronger. We’ve already seen that SAIC has called it quits when it comes to British assembly at Longbridge—that’s now all done back in China.
   There’s been such a massive technology transfer from the US to China over the last few years that Europe is seen as surplus by the folks in Shanghai. They have all the platforms on which they can make products globally. They may even, rightly or wrongly, think that the remaining brands can get them into Europe, even if GM had pulled its Korean-made Chevrolets out of there.
   Holden can be used to westernize the product and the Australians have shown they can do it well.
   I’m not saying I agree with this, as a long-time Opel fan. I was looking forward to the new Commodores coming out of Rüsselsheim. The car looks the business, it’s roughly the size of the recently deleted Ford Falcon (therefore, I’m not sure why people are so upset about its size), and the majority of buyers don’t even know which set of wheels the power’s going to. I’ve got an Astra K coming in a few months at Lucire.
   What you’re going to see is GM basically being a Shanghai-run firm with China supplying global markets and the US operations kept going for their brand cachet.
   In the meantime, a hypothetical PSA-run Opel will continue with the existing plans till the end of these models’ life cycles, then China will become the manufacturing hub for numerous markets.
   SAIC already makes a load of Cadillacs, Buicks and Chevrolets for the domestic market, and they’ll want to pump them out more widely.
   They’ve also shown that they can take new GM platforms and turn them into Roewes—or old GM platforms and turn them into Baojuns.
   PSA, meanwhile, with 14 per cent controlled by Chinese firm Dongfeng, will pursue a strategy of streamlining platforms and be focused more on Europe. It could pay off as cross-town rival Renault has done well with Nissan, Mitsubishi, Samsung, Dacia and AvtoVAZ, but it won’t nearly be as secure. The two French groups have been obsessed with one another for as long as I can remember, for years spending more time rivalling each other than actually coming up with what customers wanted.
   Dongfeng may have to cough up more lolly and it could become a larger shareholder than the Peugeot family or the French government. But will it have the sort of geographical coverage that Renault has?
   That’ll be what PSA will be asking itself, knowing that it’s reasonably strong in China—but also realizing that it hasn’t been clever at creating models that can be sold globally (the current Citroën C6, DS 5LS and the DS 6 among them, sold exclusively in China). Nevertheless, there are savings to be had, though the most obvious fear is that Opel and Vauxhall will go the way of Panhard and Talbot, brands that fell into either Peugeot or Citroën’s hands over the years and become defunct at the expense of the parent companies’. Is there a desire to extend the group’s brand portfolio beyond Peugeot, Citroën, DS, the various Dongfeng lines, and the ex-Hindustan Ambassador?
   The official statement is non-committal enough and gives nothing away: ‘PSA Group and General Motors confirm they are exploring numerous strategic initiatives aiming at improving profitability and operational efficiency, including a potential acquisition of Opel Vauxhall by PSA.
   ‘There can be no assurance that an agreement will be reached.’
   In any case, we always said that SAIC was playing a long game. MG was a toe in the water. GM is the real deal.
   Controlling GM means they can do as they please, and what’s good for China is good for General Motors.

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Embrace life

22.02.2010

I may be later than many in writing about this, but I only saw it in my Tweetstream today.
   What a welcome departure from the blood-and-gore approach of many road safety public announcements, from the Sussex Safer Roads Partnership.

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