Opel+PSA mergeable??? AutoNews [Archive] - Ford Inside News Community

: Opel+PSA mergeable??? AutoNews

10-16-2012, 10:48 PM
A merged Opel-PSA could be a catalyst for reform of Europe's auto industry AutoNews
by LUCA CIFERRI - October 15, 2012 (http://www.autonews.com/article/20121015/BLOG06/310159891/a-merged-opel-psa-could-be-a-catalyst-for-reform-of-europes-auto)

General Motors and PSA/Peugeot-Citroen are mulling combining their toxic assets -- Opel/Vauxhall and PSA's core auto manufacturing arm -- into a joint venture, according to media reports. If the plan goes ahead, it could have big implications for Europe's ailing auto industry.

Morgan Stanley analyst Adam Jonas says a "bad company" comprising the Opel, Vauxhall, Peugeot and Citroen brands could be a catalyst for structural reform in the industry. "Combining the common interests of large mass market European auto firms with limited financial resources spanning multiple countries could provide the trigger for the type of capacity exit that saved the U.S. auto industry in 2009," Jonas wrote in a note to investors. "Properly structured, ring-fencing the Opel liability could be an attractive result for GM stakeholders," he said.

Jonas also said there may be room for more members to join.

A combined Opel/PSA would create a European heavyweight second only to Volkswagen Group, Europe's biggest automaker. Opel-PSA would have an 18.6 percent market regional share, compared with VW Group's 25 percent. The joint venture would be well ahead of fourth-placed Renault Group's 8.5 percent share and fifth-placed Ford's 7.5 percent.

The plan would come under scrutiny of antitrust authorities both at a European level and a national level on fears it could reduce competition. Plans by GM and PSA to create a purchasing joint venture -- a crucial part of their alliance -- were expected to be cleared by antitrust authorities by the end of September. PSA Chief Operating Officer Frederic Saint Geours told me at the Paris auto show last month that the two automakers now expect the purchasing venture to be cleared soon and begin operations by year end.

One option for GM and PSA that would face easier antitrust scrutiny would be to consolidate their production plants into a joint venture. Production and purchasing would be kept separate from marketing and pricing organizations, so there would be no risk of price cartels.

Such a scheme is not completely new to GM. When the company entered in a short-lived cross shareholding alliance with Fiat in 2000, it created two joint ventures, one for purchasing and another for powertrains. At that time, GM and Fiat said they were "allied on costs, rivals in the market place."

Read more: http://www.autonews.com/article/20121015/BLOG06/310159891#ixzz29W5bpYOk

10-17-2012, 03:11 PM
To paraphrase Lee Iacocca quoting his father, putting two losers together does not make a winner! IIRC, that's how Peugeot and Citroen ended up together.

10-17-2012, 05:29 PM
^ it's the consolidation of mfgs & shrinking of the euroMarket that interests me
saw comments around the web that some mfgs, incldg FORD, are sorta playing chicken,
waiting for others to implode
before they cut ANYthing themselves.

I kinda wonder if any foreign mfgs will just pull out / writing off Europe for the next decade or two
also wonder about having one lineup using different nameplates in diff countries
don't think THAT would make ANYbody any money...
(actually didn't take this story completely seriously before
but here's another article WITH photo evidence!)

GM Mulling Opel and PSA Peugeot Citroën Merger - Car & Driver
October 16, 2012 at 2:21 pm by Jens Meiners
http://blog.caranddriver.com/wp-content/uploads/2012/03/GM-Peugeot-CEOs-626x440.jpg (http://blog.caranddriver.com/gm-mulling-opel-and-psa-peugeot-citroen-merger/)

Observers still are largely clueless as to what GM actually tried to achieve when it bought its share in French carmaker PSA Peugeot Citroën. The ailing French company desperately needed a cash infusion, but what’s in it for GM is less clear. One theory is that having PSA’s engineering capabilities would make it easier to unload GM’s German subsidiary Opel, together with its R&D facilites. But this presupposes that outside investors actually are interested in Opel... ...The theory that’s making the rounds at the moment, however—first reported by Reuters—is that Opel and Peugeot/Citroën actually might be merged...

10-17-2012, 08:33 PM
Very true, if PSA went down in a ball of flames, it would open up a huge portion of the market (and keep plants rolling) for the others.

10-17-2012, 09:21 PM
Rumoured Opel Merger Not a Near-Term Solution for Peugeot - FitchRatings.com
16 October, 2012 (http://www.fitchratings.com/web/en/dynamic/articles/Rumoured-Opel-Merger-Not-a-Near-Term-Solution-for-Peugeot.jsp?cm_sp=homepage-_-FitchWire-_-Rumoured%20Opel%20Merger%20Not%20a%20Near-Term%20Solution%20for%20Peugeot)
A potential merger between Peugeot SA’s (PSA) automotive operations and General Motors’ Opel subsidiary would not immediately solve PSA’s biggest problems, Fitch Ratings says.

Recent press reports point to different options, but we believe these scenarios are too uncertain and lack the detail needed at this stage to assess any potential impact on PSA’s (‘BB-’/Negative) and GM’s (‘BB+’/Stable) ratings. Scenarios mooted in the press include combining the companies’ automotive operations in a 50/50 joint venture or the creation of a new structure, owned 70/30 by PSA/GM, to which GM would also bring USD10bn.

We believe the two companies are bound to accelerate and increase their cooperation, as they both need to bolster their profitability and stem cash burn. In particular, PSA needs to urgently streamline its cost structure, reinvigorate its product offering and combat fierce competition and aggressive price pressure in Europe. However, we believe that a combination – according to the terms reported in the media – is unlikely to help PSA and Opel address the pressing issue of overcapacity or overcome political and social resistance to restructuring...

MORE... (http://www.fitchratings.com/web/en/dynamic/articles/Rumoured-Opel-Merger-Not-a-Near-Term-Solution-for-Peugeot.jsp?cm_sp=homepage-_-FitchWire-_-Rumoured%20Opel%20Merger%20Not%20a%20Near-Term%20Solution%20for%20Peugeot)

10-17-2012, 09:47 PM
Very true, if PSA went down in a ball of flames, it would open up a huge portion of the market (and keep plants rolling) for the others.
not that PSA &or Opel is anywhere near as large/crucial as GM+Chrysler
Do you know anything about the status of European supplier companies?
What it would take for them losing clients to threaten the industry as a whole?

10-17-2012, 11:03 PM
not that PSA &or Opel is anywhere near as large/crucial as GM+Chrysler
Do you know anything about the status of European supplier companies?
What it would take for them losing clients to threaten the industry as a whole?

The auto industry there is much more spread out and could take a Bk much better than NA could have back in 2008.

10-18-2012, 06:16 PM
...I kinda wonder if any foreign mfgs will just pull out / writing off Europe for the next decade or two...
not the same thing but...

BMW Shifts ‘Thousands’ of Cars to U.S. Market From Europe - Bloomberg
By Dorothee Tschampa - 2012-10-17T14:06:13Z (http://www.bloomberg.com/news/2012-10-17/bmw-shifts-thousands-of-cars-to-u-s-market-from-europe.html)

Bayerische Motoren Werke AG (BMW) has shifted “tens of thousands” of cars that were originally targeted for Europe to the U.S. and Asia this year as sales weaken in the crisis-hit region.

“Challenges in Europe are getting greater,” Ian Robertson, sales chief for the world’s largest luxury-car brand, said to reporters today at a company event in Munich. The region faces “a lot of bumps on the road” before it stabilizes and an auto-market recovery could take years, he said.

Europe’s car industry is poised to suffer its biggest annual sales drop in 19 years in 2012. Munich-based BMW has avoided the brunt of the European sovereign-debt crisis thanks to demand in the U.S. and China for models like the new 3-Series sedan. The brand sold 14 percent more cars and sport-utility vehicles in September globally, helping boost nine-month deliveries 8.6 percent to 1.11 million vehicles.

Robertson said he expects “good” growth in the U.S. in October and November, and China is still attractive, even if growth has slowed since the beginning of the year.

“The slowdown in China is part of what’s happening in Europe,” as the effects of the debt crisis ripple beyond the continent, he said.

The growth elsewhere doesn’t help BMW’s partners in Europe, and the company may need to help dealers through the crisis, especially in Spain where it faces “some very difficult decisions” on restructuring the dealership network, Robertson said.

10-23-2012, 03:09 AM
GM says it's making progress on details of alliance with Peugeot - DetroitNews
October 22, 2012
By Tim Higgins, Bloomberg News (http://www.detroitnews.com/article/20121022/AUTO0103/210220355/1148/auto01/GM-says-s-making-progress-details-alliance-Peugeot)
Sao Paulo, Brazil -- General Motors Co. is making headway on implementing its alliance with PSA Peugeot Citroen, Chief Executive Officer Dan Akerson said in an interview.

"There is progress," Akerson said yesterday in Sao Paulo, ahead of this week's auto show.

GM said in a filing with the U.S. Securities and Exchange Commission it wants to sign agreements with Peugeot on product- development, vehicle-supply and powertrain-supply plans by the end of October.

"There is a milestone on the 31st of October," he said. "It's fair to say we'll have something to comment publicly on by that." The deadline allows for postponement, Akerson said in the interview.

Efforts to iron out details of the GM-Peugeot alliance slowed amid a worsening European auto market and regulatory review, people familiar with the matter have said.

The automakers have already missed a June 30 deadline on a parts-buying plan. GM announced a logistics agreement with PSA on July 2, more than two months after the April 30 deadline set out in the automakers' Feb. 29 master agreement filed with the SEC.

A GM-PSA purchasing announcement may come before the end of this month or in early November, Akerson told reporters at a media event.

Peugeot Chief Executive Officer Philippe Varin said last month at the Paris auto show that while a joint purchasing agreement requires regulatory approval, it should be achieved in November.

From The Detroit News: http://www.detroitnews.com/article/20121022/AUTO0103/210220355#ixzz2A6FETOLr

10-24-2012, 07:25 PM
GM and Peugeot to Develop Four Vehicle Platforms Together - Car&Driver
October 24, 2012
by Justin Berkowitz (http://blog.caranddriver.com/gm-and-peugeot-to-develop-four-vehicle-platforms-together/)
...General Motors inked a deal with PSA Peugeot Citroën in February of this year. GM’s German subsidiary, Opel, is crumbling; PSA Peugeot Citroën is so troubled that just yesterday the French government announced it would guarantee (acting as an insurance company, basically) $9 billion worth of loans for the French firm...

...Today, GM and PSA Peugeot Citroën announced they would be collaborating on development of four vehicle platforms, with the first vehicles hitting production in 2016. Here’s what they’ve announced, and our take—that is, assuming GM doesn’t spin off Opel completely in the next four years...

• A joint program for a compact-class multi-purpose van for Opel/Vauxhall and a compact-class crossover utility vehicle for the Peugeot brand...

• A joint multi-purpose vehicle program for the small-car segment for Opel/Vauxhall and the Citroën brand...

• An upgraded low CO2 small-car segment platform to feed Opel/Vauxhall’s and PSA’s next generation of cars in Europe and other regions...

• A joint program for mid-size cars for Opel/Vauxhall and the Peugeot and Citroën brands...

plenty MORE... (http://blog.caranddriver.com/gm-and-peugeot-to-develop-four-vehicle-platforms-together/)

10-25-2012, 07:31 PM
Peugeot Said to Get $9 Billion in State Guarantees for New Bonds - SFGate.com
Mathieu Rosemain, Bloomberg News
Published Tuesday, October 23, 2012 (http://www.sfgate.com/business/bloomberg/article/Peugeot-Said-to-Get-9-Billion-in-State-3974348.php)

Oct. 23 (Bloomberg) -- PSA Peugeot Citroen may announce a deal as soon as today in which the French state would guarantee as much as 7 billion euros ($9 billion) in new bonds for the carmaker’s finance arm in exchange for greater government and worker influence, people familiar with the matter said.

The government would back the bonds for Banque PSA Finance, and Peugeot would appoint a labor leader and a government representative to its board of directors, said the people, who asked not to be identified discussing ongoing talks. A syndicate of banks would also provide Peugeot’s financing unit with news loans which would not have state guarantees, the people said.

Peugeot, Europe’s second-largest carmaker after Volkswagen AG, needs to keep down its bank’s borrowing costs, which impact the rate paid by customers. The automaker is using up cash as the region’s car market heads for its biggest annual drop in 19 years. The German state of Lower Saxony, VW’s second-biggest shareholder, said it opposes French aid for Peugeot and indicated Germany would ask for a European Commision review.

“It is pretty obvious what would happen,” David McAllister, Lower Saxony’s prime minister and VW supervisory board member, said when asked by Bloomberg whether he’d request a review. “VW and Lower Saxony see these state loans very critically because they won’t help solve the problems that certain European states have with their automotive industry.”

McAllister is a member of Chancellor Angela Merkel’s Christian Democratic Union party. The European Commission may scrutinize the plan under state aid rules if it gives the company an unfair financial advantage.

Shares Drop
The shares dropped as much as 15 cents, or 2.6 percent, to 5.83 euros and were down 2.2 percent as of 3:54 p.m. in Paris. The stock has plunged 45 percent this year, giving the automaker a market valuation of 2.08 billion euros.

Peugeot, whose nine-month sales in the region dropped 13 percent, said in July it will eliminate 8,000 jobs and close a factory near Paris. The French carmaker would cut 100 fewer jobs than planned as part of the deal, one of the person said.

“All in all, these concessions are very political and not that penalizing for PSA, as the board will remain dominated by the family,” said Florent Couvreur, an analyst at CM-CIC Securities who recommends buying the shares.

The Peugeot family is the automaker’s largest shareholder. The French automaker earlier this year entered into a strategic alliance with General Motors Co. in which GM became the second- biggest stakeholder.

Funding Lifeline
French Finance Minister Pierre Moscovici said last week that Peugeot may get a funding lifeline from the government. Peugeot is talking with the government about a loan for its finance unit from a syndicate of banks that would be guaranteed by the state, a person familiar with the matter said Oct. 17.

The continued review of Peugeot’s financing arm for a possible downgrade by Moody’s Investors Service could lead the bank to be rated junk. A non-investment grade rating for the bank would increase borrowing costs and as a result worsen financing conditions for customers and dealers.

French buyers currently pay as little as 1.9 percent annual interest on 10,000 euros in financing from VW, the company said. From Peugeot, the same loan would cost around 11.6 percent annually, according to the automaker’s website.

11-14-2012, 01:02 AM

AutoNews subscription (http://www.autonews.com/article/20121113/ANE/311069722#ixzz2C8R8Dscc) =
Peugeot and Opel halt tie-up talks - GlobalMain & Reuters
Published Tuesday, Nov. 13 2012, 1:46 PM EST
Last updated Tuesday, Nov. 13 2012, 1:49 PM EST (http://www.theglobeandmail.com/report-on-business/international-business/european-business/peugeot-and-opel-halt-tie-up-talks/article5236628/)

General Motors Co. and alliance partner PSA Peugeot Citroën have halted talks on a deeper tie-up amid misgivings about the French car maker’s worsening finances and government-backed bailout, people familiar with the matter said.

The companies, already pursuing an operational partnership announced in February, had also been exploring a full combination of Peugeot with GM’s European unit Opel, which is based in Germany.

But two sources with direct knowledge of those discussions said they were broken off after Peugeot accepted a state guarantee for its lending arm last month and announced a further deterioration of its cash position...

MORE... (http://www.theglobeandmail.com/report-on-business/international-business/european-business/peugeot-and-opel-halt-tie-up-talks/article5236628/)

falcon lover
11-14-2012, 09:42 AM
Debt + Debt = bankcruptcy