Despite a plan for a financial turnaround by 2015, PSA projected a cash burn rate as much as 1.5 billion euros for 2013. Meanwhile, PSA’s finance arm had their bonds downgraded to junk status.
The downgrading of Banque PSA’s bonds by Standard & Poor’s is yet another blow for the French automaker, which reported record losses this week. One positive development for PSA was a labor agreement with workers at the troubled Aulnay plant, which allowed PSA to start winding down production ahead of schedule.
Meanwhile, French paper La Tribune shed some more light on PSA’s new brand strategy going forward. Initial reports suggested that Peugeot would move upscale, with Citroen remaining in its current place, but La Tribune now claims that
Citroën and should move at least partially to models simpler, more affordable, while its DS range must occupy the high ground. Peugeot remains in place somewhere between the two
We’ll have the story straight as soon as possible. But as Jimmy Buffet famously said, it’s 5 o’clock somewhere, and in France, the work day is definitely over right now.