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PSA will be merged into FCA

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

  1. MJAB

    MJAB Well-Known Member

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    Actually Dongfeng Motor Group has actually 12.2% of PSA, Bpifrance Participations (french state) 12.2% and Peugeto family has 14.21% (FFP 11.3% + Peugeot family 2.91%).

    What will do Donfeng Motor Group will be decided by themselves in a near future, but they have the option to sell (as well as the french state).

    The control of the company will be in the hands of Agnelli (Exor) and Peugeot families (FFP + Peugeot family).

    "Peugeot Harnessed Family Ties to Woo Fiat After Renault Snub"
    Peugeot Harnessed Family Ties to Woo Fiat After Renault Snub (at https://www.bloombergquint.com/business/peugeot-harnessed-family-ties-to-woo-fiat-after-renault-snub )
     
    #61 MJAB, May 12, 2020
    Last edited: May 12, 2020
    ScramFan likes this.
  2. Ernesto

    Ernesto Active Member

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    I got caught in an emergency situation. I destroyed a Goodyear tire on my like new 2007 PT Cruiser. The Goodyear tire came from Walmart with road hazard and has 14,000 miles on it. All my Walmart service centers are closed. I ducked into a Firestone store and bought a Windsail tire I've never heard of. Arriving home and doing meticulous research, I learned I had bought a Chinese special. Buying is not my favorite way to learn to avoid Windsail tires.
     
  3. Stéphane Dumas

    Stéphane Dumas Well-Known Member

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    Unless Renault interrupt the wedding ceremony doing a "Dustin Hoffman Gratuate" stunt, lol. Sorry Renault, the ship has sailed.
     
  4. Dave Z

    Dave Z It's me, Dave
    Staff Member Level III Supporter

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    Now you have a good spare tire ;)
     
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  5. Donte Lindsey

    Donte Lindsey Active Member

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    May be a silly question....but do you think there could be a way they could get Mazda in on this maybe not a merger but an alliance? FCA already has a care they did together and Mazda just requested a loan to weather the storm. I know Toyota has some shares but I dont think its a controlling interest.
     
  6. freshforged

    freshforged Well-Known Member

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    not likely given mitsubishis troubled relationship with Renault
     
  7. Ryan

    Staff Member Level III Supporter

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    I think their partnership with Toyota will be deepening. Some Lexus models are rumored to use new RWD Mazda platforms and engines and they are both building new crossovers at a new assembly plant.
     
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  8. aldo90731

    Staff Member Level III Supporter

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    Yes, every indication is that Toyota and Mazda are going to deepen their partnership.

    Mazda can’t survive on its own; Toyota doesn’t know any more how to build niche vehicles. Besides, that gasoline compression engine Mazda has patented could be a big deal. If it works out, it could give Toyota a huge competitive advantage in fuel efficiency.
     
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  9. Beentherebefore

    Level III Supporter

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    Don't know if this will affect the proposed merger or not;

    FCA, PSA Group ditch dividend distribution over COVID-19 (at https://www.freep.com/story/money/cars/chrysler/2020/05/13/fca-psa-group-cut-dividend-coronavirus/5186752002/ )

    The WSJ had an article on the merger earlier this week and mentioned that Elkann was wheeling and dealing in the re-insurance business now and had more shares in a company in that field than he does of FCA so maybe dropping the proposed dividend won't be a deal breaker for him.
     
  10. aldo90731

    Staff Member Level III Supporter

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    Meanwhile, the head of Nissan North America, José Valls, got sacked today. Nissan offered no details besides that they are restructuring. Valls had been in that role for a little over a year. I met Valls when he ran Nissan Mexicana a few years ago; he did a good job.

    The politics inside Nissan USA are pretty nasty.
     
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  11. Adventurer55

    Adventurer55 Well-Known Member

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    It appears to be a real cluster inside there. Ghosen must've had his tentacles into to all of the units, because it's all fallen apart and seems to be no end in sight.
     
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  12. 77 Monaco Brougham

    77 Monaco Brougham Well-Known Member

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    In this time of great economic uncertainty, it seems prudent to me that the two companies would cancel the scheduled dividends to shareholders. After all...Shouldn't they be trying to conserve as much cash as possible to ride out this crisis?

    Besides, he optics of FCA / PSA handing out stock dividends now would have been horrendous!

    Which reminds me...I thought I read somewhere online that the three German auto firms had gone "hat-in-hand" to the German Federal Government to ask for assistance / €€€...while at the same time announcing / handing out dividends.


    It goes without saying that this touched off a wave of outrage among the German populace.
     
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  13. T_690

    T_690 Well-Known Member

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    Should they?

    FCA has higher brand value than PSA. Brands in question are Jeep, Maserati and Ram.

    So PSA must give some concessions. Like 58:42 merger or something else. Maybe keeping Faurecia supplier as part of the new company.
     
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  14. 77 Monaco Brougham

    77 Monaco Brougham Well-Known Member

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    For FCA (read John Elkann) to take advantage of PSA (and by extension the Peugeot Family) at this time...would be a supreme act of bad faith, not to mention bad taste, and would run completely counter to European delicacy and decorum.

    The Peugeot and Agnelli families have been friends for a very long time, and I'm sure both would like to continue as such.
     
    #74 77 Monaco Brougham, May 15, 2020
    Last edited: May 15, 2020
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  15. T_690

    T_690 Well-Known Member

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    That's not taking of advantage.

    If extraordinary dividends for FCA should be taken away than PSA should take appropriate concessions. Concessions on one side vs. concessions on the other.
    For example FCA will halve amount of extraordinary dividend, NewCo will keep Faurecia as its subsidiary and merger should proceed as 50:50.
     
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  16. KrisW

    KrisW Well-Known Member

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    This isn't a question of "taking advantage" of one side or other, but making sure that the merger parties get the right value for what they will bring into the combined company. The best situation is where two companies of more-or-less equal value merge. If FCA is more valuable than PSA, then PSA keeping hold of Faurecia seems like the easiest way to redress that.

    Regarding Nissan, it is being speculated that they will announce their withdrawal from Europe at their May 28th investors' event, and concentrate on the US and Asian markets instead. I'm doubtful about this, as I'm not sure how this would work, or if it's wise for a company with a mature EV product to pull out of the EU just as the market environment begins to favor EVs. There is, however, the possibility that they will wind down manufacturing in Europe, and supply from Japan instead. With Brexit now looking like a complete reversion to WTO terms, its huge operation at Sunderland (UK) could quickly become uneconomical to run; and the recent EU-Japan trade deal allows freer access to EU markets from Japan.
     
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  17. aldo90731

    Staff Member Level III Supporter

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    Nissan announced today it is shutting down its assembly plant in northern Spain and taking that production into France.
     
  18. T_690

    T_690 Well-Known Member

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    Interesting. Are they seeking French state help together with Renault?
     
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  19. aldo90731

    Staff Member Level III Supporter

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    Don’t know about seeking French state assistance, but sounds like it is consolidating production in France with Renault.
     

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