Discussion in 'Mopar / FCA News' started by T_690, Feb 26, 2020.
So, it'll go something like this: Ram, a Stellantis brand?
@TripleT , haven't seen you around in awhile. Welcome back!
You mean, a Stell/ \ntis brand.
Aries Stellantis notam
Gonna take some getting used to.
"Oxyclean, a Johnson family company." Is how I heard that when I read it
Aries Stellantis (literally means Ram of the Stars), as "stellantis" is the genitive singular of "stellans," which means "starry, having the appearance of stars"
I think I would have preferred Stellans Motors or Stellans Automotive Group ...
Sounds like PSA weathered the first six months of 2020 in much better financial position than FCA: FCA-PSA deal terms hinge on strength of recovery, Tavares says
Tavares says the diverging financial outlooks between the two could alter the terms of the merger.
And rightly so.
John will walk away...
Not if the pandemic forces his hand.
I don't enjoy saying this...but...
IF the interests of "Universal Karma" are to be served, then PSA / The Peugeot Family will want to change the terms of the transaction from "nominal merger of equals"...to...ACQUISITION by PSA / The Peugeot Family.
In effect...it would serve as punishment for almost a century of mismanagement by Chrysler Corporation / DCX / Cerberus / FCA.
That makes it look like two separate words...Stell and ntis. One will be left wondering how to pronounce ntis...is the n silent? The head scratching will be terrible. Women shall weep and men shall gnash their teeth. Human sacrifice...dogs and cats living together...mass hysteria!
Ok...maybe not QUITE that bad.....
Hardly. Tavares is chancing his arm, using a once-off external event to claim that his company is more valuable than FCA simply because its manufacturing hubs (central Europe and France) and main markets were not as badly hit by Covid-19 as FCA's.
On a long-term view, there's no change to the valuations, and the terms of the merger were set on long-term forecasts, not annual spikes or dips.
And then the acquisition of GM-Europe(Opel-Vauxhall) was to get some GM's DNA to prevent the "Jeep curse". Bearhawke once mentionned then it could be GM who have the cure for that jinx.
Sligtly off-topic, Gilles Vidal, a Peugeot designer goes to Renault from what I read on that French article. Gilles Vidal de Peugeot à Renault ! - Leblogauto.com (at https://www.leblogauto.com/2020/07/gilles-vidal-de-peugeot-a-renault.html )
And speaking of Renault, does who read DeLorenzo's Autoextremist column this week mentionned then things isn't rosy at Nissan.
This "one-off external event," as you describe it, will most likely change the automotive industry forever.
In any event, the fact that Tavares is bringing it up clearly suggests he sees it as a possibility.
Nissan warned today that losses are going to mount: Nissan shares fall 10% after record loss warning
Here is the midwest after a tornado, debris will continue to fall for awhile even after the cloud has past. Some of the debris will fall in places distant from where the tornado struck. That is what it feels like in the rental car business at this moment. We are still waiting for the debris to stop falling. Our business is picking up here because people need to travel, but flying remains limited. I am seeing more vehicles with a thousand miles added to the odometer in a week. We are short of vehicles and what we have is being used up. A company just can't go out and buy more vehicles, because not all the production facilities are up and running. Even if a company can get the products money is tight. Hertz is on the ropes while the banks are tight fisted. Rental companies are the automakers biggest customers.
The parts supply for manufacturing will be problematic. Too much stuff comes from China, which is an increasingly hostile regime towards the US.
Another problem is the On the Beach driving environment on our roads. Traffic is down, but accidents and fatalities are up. More people are carelessly wrecking their vehicles. Vehicles need to be replaced, but consumers are hurting financially.
Yes, and those changes will apply equally to PSA as to FCA. The "one off" was the initial mass closure and widespread sheltering orders put in place in the first half of this year.
Also, this is not a finished story: while Italy has managed to keep a lid on things, France, Spain and Central Europe are showing worrying signs of a relapse. PSA may yet go through the same difficulties that FCA has done.
As CEO of PSA, Tavares has a duty to talk up PSA and talk down FCA and try to get a larger shareholding in the combined entity. We've no duty to believe everything he says.