America preparing to take over France

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    Jun 27, 2013 5:03 PM GMT
    When I say France I mean PSA Peugeot Citroen.

    ArticleThe Peugeot family, founders of PSA Peugeot Citroen, could step back to let GM take over the ailing business. City sources have already warned that PSA could get close to not having enough free cash to run the business by the end of 2013.

    A report from news agency Reuters suggests that if GM were to take control of PSA it would want to shut down factories and make redundancies in France and Germany, something the French government is unlikely to let Peugeot family do in its home market.

    Speaking to Reuters, sources close to the ongoing discussions said: “The Peugeot family has now accepted that they'll lose control.

    “PSA will need to present a new industrial plan for people to underwrite a capital increase, and the only hope is GM. They (GM) are ready to inject more money if they can control the business, integrate Peugeot and Opel and rationalize production.” Peugeot, which is heavily reliant on sales in its home territory, is fighting for survival according to the report.


    http://www.autocar.co.uk/car-news/industry/peugeot-family-could-hand-control-general-motors


    Automotive mergers and tie ups are the way of the future but I doubt this means more cars available here in North America.

    Makes me wish we had more French offerings here.

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  • Apparition

    Posts: 3516

    Jun 28, 2013 1:31 AM GMT
    Like it or not, china and india are going to devestate the low-mid priced car industry in the next 10 years with disposable sub 4000$ cars. Since "used cars" will have no value (when you can by a disposable one that lasts the same for a few grand) the value of new cars will have to plummet to make up the difference (no trade in value) this will pretty much wipe out the market for any price sensitive company (meaning bmw, rolls, ferrari etc wont care, but the american companies are going to be trashed)


    http://www.gizchina.com/2012/05/03/china-launches-worlds-cheapest-car-good/

    laugh all you want, but remember WOMEN make over 80% of the car buy decisions and they are going to go safe big and expensive or they are going to go cheap and if they see this and they can buy 3 of them for the price of the next cheapest car (say a yaris) there will be nothing stopping them. Especially, when at 4000$ it is not even worth insuring for collision and theft..so there will be massive insurance savings as well.
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    Jun 28, 2013 10:55 AM GMT
    Whew! I was thinking, when reading the thread title, that the quality of French wine and desserts would go down.
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    Jun 28, 2013 11:09 AM GMT
    Hopefully they will build more remote plants here to create more jobs..

    That would be awesome !
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    Jun 28, 2013 12:17 PM GMT
    Apparition saidLike it or not, china and india are going to devestate the low-mid priced car industry in the next 10 years with disposable sub 4000$ cars. Since "used cars" will have no value (when you can by a disposable one that lasts the same for a few grand) the value of new cars will have to plummet to make up the difference (no trade in value) this will pretty much wipe out the market for any price sensitive company (meaning bmw, rolls, ferrari etc wont care, but the american companies are going to be trashed)


    You are correct on cheap cars but they won't be sold here. Industry folks consider the southern half of Africa as the next explosive growth market for cheap affordable cars. French cars are somewhat popular there which might explain why GM is partly interested PSA.

    As for cheap cars in North America there is no way to profitably sell a $4000 car that meets safety, emissions, and fuel economy requirements. My information here is slightly out of date but in 2011 the cheapest car to build in North America was the 2011 Jetta at $11,600 and above. There is no way an imported car will be substantially cheaper.


    Also like the article states both Opel and PSA have plenty of underutilized factories and too many employees. By owning both companies GM can play the Germans off against the French to get the governments to allow GM to shutter factories and shed excess workers. In the end both the Germans and French people lose.
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    Jun 28, 2013 4:59 PM GMT
    ATC84 said
    Also like the article states both Opel and PSA have plenty of underutilized factories and too many employees. By owning both companies GM can play the Germans off against the French to get the governments to allow GM to shutter factories and shed excess workers. In the end both the Germans and French people lose.


    Yeah I think that's what they want to do. As a French I really hope this wouldn't happen. I would prefer PSA to be bought by the Chinese rather than by GM. Look at what GM did with Saab and what Geely is doing with Volvo.