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PSA will be merged into FCA

Discussion in 'Mopar / FCA News' started by T_690, Feb 26, 2020.

  1. aldo90731

    Staff Member Level III Supporter

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    Yes, it is amazing the --apparent-- unpredictability of how some sectors are impacted and others are not. Also, the way in which ALL sectors are impacted differs.
     
  2. KrisW

    KrisW Well-Known Member

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    In the end, what PSA bought from GM was a few factories, some staff and the right to brand its own cars as 'Opel' and 'Vauxhall'. That "GM DNA" has been purged from the combined operation as soon as PSA could do so.
     
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  3. Beentherebefore

    Level III Supporter

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    aldo90731 likes this.
  4. aldo90731

    Staff Member Level III Supporter

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  5. MJAB

    MJAB Well-Known Member

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    And Tavares was saying time ago that the the supposed Opel technology already developed that GM was talking about during the deal was not there. There was practically nothing in R&D.
     
  6. MJAB

    MJAB Well-Known Member

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    Someone seems to forget that in actual FCA - PSA deal is FCA that has to distribute dividends that are higher higher than the ones of PSA.
    FCA has already sold Magneti Marelli and Teksid (iron) to be small enough to merger with PSA.
     
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  7. Adventurer55

    Adventurer55 Well-Known Member

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    So how does John simply walk away? FCA is in no shape to simply walk away when they've wasted at least three years trying to merge with anyone that would have them. It sounds to me like PSA has its crap together way more then FCA does at this point. I didn't see PSA begging the French government for money like FCA did with the Italian government. So, the terms might be flexible given the current state of things.
     
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  8. MJAB

    MJAB Well-Known Member

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    PSA didn't subscribed french goverment loans because they didn't want interferences from french goverment in the merger with FCA.
    Why? Because french goverment is one odf PSA shareholders. The Peugeot family target is to have french government out of the company.

    In april PSA increased its credit lines by Euro 3 billion to have more cash.
     
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  9. MJAB

    MJAB Well-Known Member

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    The Covid-19 will be "good excuse" to accelerate the process that automotive companies were already starting to do. Reduce workforce in the whole sector.
    The other part was "lectrification2 = less components for cars ... while true for electric vehicles it is not in reality for electrified vehicles which have more parts and components.
     
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  10. Stéphane Dumas

    Stéphane Dumas Well-Known Member

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  11. T_690

    T_690 Well-Known Member

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    FCA haven't borrowed money from the Italian Government. They borrowed it from the bank Intesa Sanpaolo. Italy guarantee for 80% of the loan which means extremely good loan terms with very low interest rate.

    It would be foolish from FCA if they had skipped it. It was FCA's right to borrow money under this terms.
     
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  12. Adventurer55

    Adventurer55 Well-Known Member

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    And you're trying to change the narrative. They had to borrow money, PSA didn't, and actually made money, which in of itself is really a shock, given the current state of the business. Ultimately, if it doesn't get paid back the government is on the hook. I'm not here to debate whether it was a deal or not, it doesn't help their position when the final papers are ready to sign.
     
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  13. 77 Monaco Brougham

    77 Monaco Brougham Well-Known Member

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    I'm already dreading tomorrow's FCA financial report of its first-half performance.:eek::eek::eek:
     
  14. aldo90731

    Staff Member Level III Supporter

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    There’s a string of negative economic news coming out this week: another 1.43 million filed for unemployment this week, US GDP shrunk by an astonishing 34% in Q2. Inflation estimates are due soon; my hunch is we are going to see inflation spike up. And the supplemental unemployment benefits and the evictions moratorium end tomorrow. Unless Congress extends both over the next 24 hours...brace yourselves...
     
  15. KrisW

    KrisW Well-Known Member

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    In fairness, he's not - he's describing the situation as it actually is. FCA borrowed some of its ongoing capital needs from an Italian commercial lender. That's not the same as a government loan. Had Intesa Sanpaolo not offered good enough terms, another commercial bank would have been approached.

    The good terms were because the Italian government provided guarantees to commercial lenders in Italy to encourage lending to all domestic businesses. That's not the same as a government bailout to FCA: any company operating in Italy is able to avail of the favorable rates.

    The Italian government is backing 80% of the total capital lent by Italian banks. That's not the same as 80% of the loan made to FCA.
     
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  16. Ryan

    Staff Member Level III Supporter

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    I wonder if anyone else just logs in, skims through the forums, and thinks to themselves, "Wow, it's tiring to read the same thing over and over."

    I think I'm done.
     
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  17. Beentherebefore

    Level III Supporter

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    STAGFLATION!
     
  18. Zagnut27

    Zagnut27 Jeepaholic

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    It’s hard to find non-depressing news or comments anywhere these days, and it’s all the same topics on some kind of perpetual rewind. I’m beginning to think the Earth strayed too close to a black hole and this is how it ends...one long stream of what...the....fuuuuuuuuuuuuuuuuuu
     
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  19. aldo90731

    Staff Member Level III Supporter

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    Indeed. Apparently the Fed estimates that inflation actually declined in Q2...
     
  20. aldo90731

    Staff Member Level III Supporter

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    The longer you live, the more you realize there are only so many behaviors out there. The same behaviors repeat themselves every so often.

    The only thing that changes are the frequency of certain behaviors and the characters —i.e., the politicians, the countries, the automakers.

    Given where we are, yes, there’s a lot of fuuuuuuuuuuuuuu happening right now. And this time the US is getting a bigger share of them. Notwithstanding today’s FCA Q2 $1.2 loss announcement.
     
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  21. KrisW

    KrisW Well-Known Member

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    Stagflation is when prices rise at the same time as economic activity falls. (stagnation + inflation). This isn't that: now, shrinking activity is dragging down prices with it, which is a more normal pattern, and a little easier to deal with economically.

    Fuel costs collapsed, and they're a major contributor to the goods-and-services mix that's used to measure inflation. Also, while some retailers spiked their prices early on, they lowered them again as consumer demand fell.

    Expect a boom in big-ticket spending once things normalize: those with jobs that they could do at home have still been collecting pay-checks, but have had nothing to spend that cash on. Holidays are off the table, so most spending growth should move to home improvements and new cars.
     
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