GM's Alliance Partner PSA Implodes: Worst Year In Two Decades
What a sexy bride! A year ago, GM acquired seven percent in moribund PSA. A year later, PSA announces truly horrific results. PSA’s global car sales dropped 16.5 percent for the year. Its market share in Europe is down 0.5 points to 12.7 percent. There is a big black hole where there used to be a profitable Iran business.
The European car market is at its lowest in close to two decades and Peugeot’s sales performance in the region in 2012 was the worst in at least the same period, Reuters says. PSA thinks that the EU market might drop another 3-5 percent this year.
“If this view of the world should turn out correct, we see little reason why the financial situation at PSA should improve at all during the year,” Credit Suisse analyst told Reuters.
The mesalliance with GM brought PSA more trouble than benefits: After the linkup with GM was announced, PSA found itself in the cross-hairs of an influential US anti-Iran lobby group which pressured GM to make Peugeot shut down Peugeot’s Iran business due to Tehran’s suspect nuclear program. PSA abandoned Iran faster than intended, at the cost of 313,000 CKD kits and untold amounts of parts no longer shipped to Iran. More
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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They should build better cars if they want to keep their market share. Renault isn't having these sorts of problems! AVANTIME!
GM should look to Ford's strategy and concentrate on their core products instead of constantly acquiring or purchasing other brands. I swear I could work at GM. I want to be the CSO (Common Sense Officer).
It's time to start importing Peugeots to America again! Citroens too! The Euro-Dollar exchange is favorable, and the past is unknown to a newer generation of Americans. They should do it right this time and import only the premium models with their huge markups, and concentrate on parts and service on the coasts for the sales, with a leasing program that includes bumper to bumper service for the duration of the lease. It works for BMW! Of course, with the luck of the French, the Euro will crater and whatever profits are left will be wiped out by warranty costs.
And you know Peugeot used to have such a good name in europa in the 60's-70's. Now look at it. What a mess. That's lost on young buyers today. Declining market share. Not thrashed by les anglais - good lord no.. Rue Pontiac et Olds?