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.
According to the Detroit Free Press, GM has moved ahead with a $75 million investment in Lordstown Motors EV auto company. This is a $25 million cash and $50 million non-cash investment of plant and equipment of what was owed to GM for the plant.
This allows Lordstown Motors to move forward with a IPO offer that "I Believe GM can cash in on."
Lordstown Motors in their IPO paperwork is showing presales of 27,000 trucks so far and what will be a use of GM / LG Battery packs for their trucks if I am reading the vague details right.
And I am unconvinced the group building it has the moxy to keep production going. Methinks Ohio would have been better off flattening the building.
Once companies realize how much they can save on fuel, I can see short haul trucks becoming largely electric.
These posts of fine ladies keep me coming back...
My comment about blu and David made me think of this video, funny to watch.
Supposedly the bed will be smaller than the old Sport Trac. wonder how many bags of mulch it will carry. Supposedly it will have the front end of the Bronco Sport.