Posts tagged ‘PSA’


GM’s Holden to abandon C and D car segments, delivering them on a silver platter to competitors

23.01.2020


Stuart Cowley for Lucire

I haven’t spoken to Holden New Zealand to see if we’re following suit, but as far as Australia’s concerned, 2020 will be the final year for the Astra and Commodore, as Holden transitions to selling only trucks (utes) and SUVs.
   Here we are, with its most competitive C- and D-segment models for a long time, and Holden decides to abandon them.
   New Zealand did briefly chart its own course recently with the Holden Spark, which it secured supply for even after its cancellation in Australia, but it’s unlikely to depart from what’s happening in Australia.
   Beyond the obvious question of ‘What will the cops drive now?’ it’s a sad development for a brand that’s been part of the Australasian motoring landscape for decades, even before 1948 if you count the Holden coachbuilt bodies before the war.
   Holden points to the rise in truck and SUV sales and the decline in passenger car ones, and, unlike Ford, it can’t blame a lack of marketing for them—over here, it’s been fairly consistent in promoting each one of its lines.
   Over in Australia, Holden sales collapsed when domestic production ended, but in New Zealand, where we have no such allegiance to ‘Buy Australian’, I saw some reasonable sales’ figures for the Opel Insignia B-based Commodore. And it is a good car.
   The chief reason, I imagine, is that after GM sold Opel to PSA, which seeks now to merge with FCA, it didn’t really want to buy cars off a competitor. And PSA really didn’t want to be paying royalties off each car it sold back to GM. Basically, the supply chain ain’t what it used to be.
   By 2021, PSA will launch a new Astra based on a platform to be shared with the third-generation Peugeot 308, and Insignia B’s days are numbered, too, as it transitions that to a PSA platform (if PSA doesn’t just cancel it altogether). GM would earn nothing from this 2021 model, so there would be no point going forth with it.
   GM has also killed off the Cruze in Korea, the US and México, leaving Argentina the only country that still makes it, so it wasn’t as though it had anything else in the C-segment that it could bring in to Australasia. Many of its Chinese-market models are on the GEM platform, regarded as too basic for our needs, and there seemed to be little point to getting them complied with our standards or having them engineered for right-hand drive. Basically, there isn’t an alternative.
   This frankly strikes me as all a bit defeatist, not unlike Ford’s decision to kill off all passenger car lines (bar Mustang) in the US a few years ago.
   Toyota will have you know that the C- (Corolla) and D- (Camry) segments are doing quite well for them, and they are quite happy to pick up some conquest sales from the Americans.
   I’m not sure if ‘We’re not doing that well there. Oh well, let’s give up,’ is much of an attitude to adopt when certain segments could reignite as consumer tastes shift. And if one really wanted to compete—if there was a will—then one could.
   What I fear is that GM isn’t Mystic Meg and even though my previous post was in jest, there is a serious point to it: people might wake up to the big frontal areas and poor aerodynamics and high centres of gravity and general irrelevance and inefficiency of the SUV for everyday use. I mean, I still can’t reconcile people complaining that petrol prices are too high while sitting in a stationary SUV with the engine on awaiting someone, anyone, to leave a spot so they can park right outside the shop they wish to go to. While claiming they are concerned about the planet. I have a C-segment car because I do think petrol is expensive. And even if you had an electric-powered SUV, you’re still affected by the laws of physics and your charge won’t go as far if the aerodynamics are poor. I thought we got all these lessons in the 1970s and 1980s.
   Just as I warned that killing Plymouth was a mistake for DaimlerChrysler—because recessions can come and people want budget brands—I question whether becoming the vendor of ‘Australia’s own truck’ is a smart tactic. There are some segments that have a base level of demand, or so I thought.

Of course, this leaves PSA to do the inevitable: launch Opel as a brand in this part of the world.
   Opel CEO Michael Lohscheller said as much when PSA bought the firm, and while his eyes were probably on China, they could apply equally here.
   I realize Opel flopped in Australia when an attempt was made a few years ago, but unlike Australia, Opel has a reasonable history here, with its Kadett GSis and a full line of Vectra As sold in the 1980s and 1990s. Kiwis know that the Opel Vectra and Holden Vectra are part of the same lineage. And I have to wonder if the brand, with its German heritage, would do well here.
   Imagine the scenario where Opel launches here in 2022 with not just Astra and Insignia (because Kiwis love their D-segment wagons, unlike the UK), but with the Crossland X and Grandland X as well.
   They’d have the goodwill of the Astra name (just as GM predicted), and there may be enough Kiwis who have positive impressions of their Vectra As. Even our family one sold recently to a South Islander after my friend, who bought it off me, decided to part ways with it. Mechanics still think highly of the Family II units those cars had.
   And somehow, I think being independent of GM is a good thing in this case—no conflict of interest, no wondering whether Mokka might cannibalize Trax, resulting in stunted marketing.
   The new design language is looking sharp and I think it would find favour among New Zealanders who are currently buying Volkswagens and Škodas. They’d also be a darn sight more reliable, too.
   If you’re thinking the market is too crowded, remember VW didn’t think so when it determined SEAT could have another crack in the late 2010s.
   I can’t be alone in thinking this—certainly Australian media were speculating if Inchcape could bring Opel in to their country this time last year. Who’ll take it on?

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Give me a break

23.01.2020

From an Automotive News interview with Yves Bonnefort, CEO of DS.

   Um, that’s called a station wagon or estate car, mate.

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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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