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FCA + Peugeot in Talks

Discussion in 'Mopar News' started by Dan Minick, Oct 29, 2019.

  1. 77 Monaco Brougham

    77 Monaco Brougham Well-Known Member

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    NO! Not "almost desperate". Just plain DESPERATE describes it much better. FCA knows full well that they're behind in the EV race, and behind in the ever-tightening Emissions / Fuel Mileage standards.

    PSA may not be much further along in those areas, but someone to share the expenses with would sure help a bunch.
     
    #21 77 Monaco Brougham, Oct 30, 2019
    Last edited: Oct 30, 2019
  2. Real585

    Real585 Active Member

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    I posted that 6 month ago. Still relevant.

    FCA business has been undermanaged and underinvested for a long while. Having margin of 6.1% at the top of the cycle with a powerful brand like Jeep and very profitable Ram trucks is a shame. Unfortunately, Marchionne despite all his fame was focused on reducing company debt with the goal of selling or merging the business before his retirement.

    PSA smells the blood and wants to get a hand on a great brand ''Jeep'' and a North American platform (plants and distribution network). As for the rest of FCA, Ram is a great business , Dodge makes sense only if they share Alfa platform -components . Chrysler will disappear and Fiat will stay as an emerging market brand. Maserati will be sold or culled. Let's face it, outside Jeep and Ram nothing at FCA is must have.

    The rational for PSA merging with FCA for the next 10 years will be also saving money in the development of electric vehicules/batteries and autonomous tech.

    Longer term, brands will have to rely on someting different than powertrain capabilities to differentiate themselves.. This is why Jeep with its off-road credentials is a precious asset.
     
  3. Beentherebefore

    Level III Supporter

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    One of the big problems with Renault was the French government owning 15%. The French govt owns (approx) 13% of PSA. Not much difference, imo.
     
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  4. 77 Monaco Brougham

    77 Monaco Brougham Well-Known Member

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    The only thing I would disagree with you on is Maserati. I think PSA would love to have a bona-fide luxury brand in its stable, especially since the introduction of "DS" hasn't really performed the way PSA had anticipated.

    As for the rest of you analysis...AMEN!...And...amen.
     
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  5. Chase300

    Chase300 Well-Known Member

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    Well this would confirm to me why new product has been delayed and updates to existing vehicles for the most part also put on hold. You want your balance sheet as strong as possible when looking to sell or merge. FCA didn't stop looking for a partner after Sergio left us.
     
  6. Chase300

    Chase300 Well-Known Member

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    Looking at Peugeot's lineup...they do have 3 nice looking SUV's that look like they would sell well here.
     
  7. codypet

    codypet Well-Known Member

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    I think the same goes for their midsized sedan.
     
  8. Real585

    Real585 Active Member

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    I could agree with you on Maserati but I do not see clearly the brand positionning of Maserati. It clearly targets people who want an alternative to the usual German brands but the targeted volumes are too low to make it a decent business model. Marchionne tried to cut corners in using some Ferrari and Chrysler components, without success because customers would not be like be seen driving a soup up version of Chrysler or a Ferrari of the poor! One solution would be to transform Maserati into a EV luxury brand emulating what Porsche is trying to do with the Taycan...
     
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  9. Chase300

    Chase300 Well-Known Member

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    I agree this is the direction Maserati should take. We see there are plenty of wealthy green buyers who will spend $100K+ in this space. Question is when can they get there and will they be late to the party?
     
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  10. Adventurer55

    Adventurer55 Well-Known Member

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    It wouldn't surprise me if they've been looking for a partner since 2012 or so.
     
    77 Monaco Brougham likes this.
  11. Chase300

    Chase300 Well-Known Member

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    Fox Business just reported the merger should be finalized/announced tomorrow from what their sources are saying.
     
  12. Real585

    Real585 Active Member

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    Not too late . EV luxury is still in its infancy.
     
  13. Dave Z

    Dave Z It's me, Dave
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    He was focused on reducing company debt, period. Going into a recession with high debt is just plain foolish. Admittedly the recession was pushed back by aggressive deficit spending, interest rate cuts, and renewed quantitative easing, but pretty much every economist is still predicting it'll arrive. This has nothing to do with who is in the White House, historically recessions come and go. Had Clinton been elected, chances are it would have arrived already because she would not have done the postponement activities listed earlier.

    I am sure any buyer would keep Dodge. Chrysler, who knows... could be the DS partner in the USA... or an outlet for Peugeots since no American will buy a car they can't spell (sorry, Mitsubishi).

    Rationale and vehicle, and nobody would argue with you there.

    Brands already do have to rely on more than powertrain, or the Hellcat would have stolen more Mercedes, BMW, Audi, (etc.) buyers. For that matter, Toyota would have ruled the world with its old Lexus lineup. For that matter, Chrysler would have dominated US sales for most of the 20th century. On the other hand, Tesla seems to have two real assets: Musk’s reality distortion field and their highly efficient engines. (Reminds me a little of old Dodge trucks with Cummins diesels, except the Dodge trucks were better made and there was no marketing miracle.)

    As for Maserati, they've announced their intention to move to electric. Really, when you have to have a 797 horsepower V8 to beat a Tesla electric, it's a sign that sport-luxury automakers can't rely on gasoline any more.
     
  14. 77 Monaco Brougham

    77 Monaco Brougham Well-Known Member

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    WOW !!!....Sounds like this thing is moving really fast.
    Maybe this time...it really is the real thing (with all apologies to the Coca-Cola Company).

    And then Mopar Nation will at lease feel some sense of relief that this chapter of the Soap Opera is over with...for now, anyway.

    Gotta run! I hear the coffee maker just finishing doing its thing.
    Coffee is Life!...All the rest are just details.;)
     
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  15. Adventurer55

    Adventurer55 Well-Known Member

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    Peugeot relaunching here would be a waste of time and resources. A Chrysler version however would sell if it's well built and attractive. Money could be directed at marketing.
     
  16. hmk123

    Level III Supporter

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    And then there is also Opel in their portfolio.... Germany is still a big market and one of the problem both Peugeot and FCA have had is decent sized and modern dealerships (in Germany). Not sure how easy it is to combine brands.
     
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  17. Adventurer55

    Adventurer55 Well-Known Member

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    So, when Peugeot bought Opel, do they keep the cars in the long term? Or is there a time limit? My question is if they keep them, these platforms would make more sense to base a Chrysler off of since they are already Americanized.
     
    kevin m. Henry and hmk123 like this.
  18. Satellite Saint

    Satellite Saint Active Member

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    I heard a rumor that FCA was in talks with Otis Elevator on a merger for a new kind of vertical transportation.
     
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  19. Adventurer55

    Adventurer55 Well-Known Member

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    Are they finally going to build an elevator to space?:rolleyes:
     
  20. Ryan

    Ryan Moderator
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    Chrysler 100?
    Peugeot-2008-2020-1280-03.jpg Peugeot-2008-2020-1280-0a.jpg
     
    Ian, page2171, eastcoaster and 5 others like this.

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