PSA CEO Carlos Tavares said on the BFM Business radio station none of the brands would be let go after the merger of PSA and FCA is complete. He said it will be a challenge to manage all of the brands to cover the market, but that he sees "that all these brands, without exception, have one thing in common: they have a fabulous history."
While acknowledging that the combined companies would have a significant number of brands, it would still be lower than the number Volkswagen manages.
The combined companies would field Peugeot, Citroën, DS, Fiat, Opel, Vauxhall, Fiat, Chrysler, Dodge, Jeep, Ram, Alfa-Romeo, Maserati, and Lancia.
Both companies will aim for efficiencies of scale and are are willing to make concessions to the European Union in order to get the okay to merge.
PSA Group is starting to sound a bit desperate for a merger these days. First they bought GM's Opel Unit for $1.54b, later demanding a roughly 50% refund due to issues stemming from extra rosy sales forecasts and emissions regulations trouble. PSA has quickly turned around the Opel unit into a profit center instead of the loss-maker it was under GM control.
More recently, Peugeot was seen to be dancing with FCA only to be rebuffed when it came to light that any merger between the two companies would come in the form of PSA stock.
Now PSA Group CEO Carlos Tavares says that he would be interested in a merger with Jaguar Land Rover, saying he would be interested in having a more premium brand above their current DS line.
Jaguar Land Rover is struggling with sales declines, but parent company Tata has said "There is no truth to the rumor that Tata Motors is looking to divest its stake in JLR".
So it is back to the dance floor for PSA without a partner. Lets see who they come up with next.
We previously had reported that Peugeot was planning on returning to the U.S. by 2026. After having been turned down by FCA for an offer of a merger, The Wall Street Journal is reporting that Peugeot is accelerating its plans for a US return to happen in 3 to 4 years, that means as soon as 2022.
One advantage they have is their recent acquisition of Opel from General Motors. Through that acquisition, Peugeot gained a number of engineers who have experience designing vehicles for the U.S. market. According to PSA CEO Carlos Tavares, anything Peugeot currently builds is up for consideration to bring to the US market, though it has been hinted that the initial offering will be in the mid-size and compact segments.
Peugeot is also looking to disrupt the sales process as well. While they still may use a dealership network, executives appear focused on a new method of vehicle delivery, perhaps using a methodology similar to Carvana where the process is primarily completed online.
... rumors are rumbling about a possible PSA / FCA merger.
The heads of FCA and PSA separately stated to journalists at the Geneva auto show that their respective companies remain open to the idea of partnering or merging with another company, though neither named which potential suitor that could be.
Robert Peugeot, who's family owns around 14% of PSA group said, "We supported the [Opel acquisition] from the start,” he told Les Echo in an interview held Monday. “If another opportunity comes up, we will not be braking, [PSA Group CEO Carlos Taveres] knows that."
Meanwhile another potential partner could be Jaguar Land Rover.
Merging with either company would give PSA better access to the US Market, something Peugeot is already planning on doing by 2026.
For FCA, the benefits would be a more global partner and access to technology that would help meet Europe's strict emissions regulations. On the flip side, it would mean 3 additional brands on top of the 7 that FCA already has.
PSA has been mulling a return to the United states since at least 2014. We reported in March of 2016 that DS was the most likely brand to mark the return of the French automaker to these shores. Now, PSA has made the announcement that Peugeot has been the brand selected, beating out Citroën, DS, and the recently acquired Opel brand.
Peugeot left the U.S. market in 1991 after selling only 4,292 vehicles the year prior.
PSA will start in 15 U.S. states and 4 Canadian provinces that have a higher rate of import vehicle sales.
The vehicles would be sourced from both Europe and China.
No firm time frame has been announced for the arrival of Peugeot in the U.S., the company only states that it wants to have its vehicles here by 2026.
Does GM have a FWD transmission that can handle 400 hp? I guess they can resurrect the XTS V-sport powertrain for an XT5 or XT6, but would either of those be any good? Or would they torque steer all over the place and have reliability issues?
But again, I hear the "Cadillac could do it" but at the end of the day they don't do it. And others don't either (Acura, Lexus etc) but then you see a Lincoln Aviator with 400 hp base and 495 hp as an option, when Cadillac maxes out at 310 hp because that is all the front wheels can handle. If Cadillac was going to do all this stuff, have the brand product line, or have good marketing, it would have happened by now.
Hello McFly, The Chassis can handle more than 300 lb-ft of Torque. GM just has not built the motor tranny combo to go above that as you pointed out, they have not exceeded above their potential yet!
Valid point and thank you my friend you are right, I was thinking myself with my comment and should have clarified it. Many of us I think tend to think of ourselves and leave comments that are very wide open to interpretation. We all should clarify ourselves versus the market.
They have Excitement that others will find, but for myself not yet!
OK- I should have assumed, but you didn't state you were talking about you as a consumer.
I can easily say ferrari or lamborghini doesn't build anything exciting (because I have no intention of paying $100K+ for a vehicle).