Tag: Alliance

By on December 12, 2013

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General Motors will sell off their 7 percent stake in PSA, but will continue joint developing select vehicles and technologies. In a statement, GM’s Steve Girsky said

“Our equity stake was planned to support PSA in their efforts to raise capital at the time of the creation of the GM and PSA alliance, and that support is no longer needed,” said GM Vice Chairman Steve Girsky. “The alliance remains strong with our focus on joint vehicle programs, cross manufacturing, purchasing, and logistics.  We’re making good progress while remaining open to new opportunities.”

GM and PSA will continue to develop a small MPV type car and a small crossover, while working together on commercial vehicles.

By on December 20, 2012

The alliance between GM and PSA is beginning to show concrete results – not just yet, but at least they decided to work on them. In a joint press release, GM and PSA announced that they will jointly work on what they call “three common vehicle platform development projects.”  Meaning cars.  Finally. (Read More…)

By on November 13, 2012

General Motors and PSA have put the brakes on talks regarding a broader alliance after PSA accepted financial assistance from the French government to help its ailing financial situation.

(Read More…)

By on August 4, 2012

When GM bought seven percent of the moribund PSA Peugeot Citroen five months ago, the happy couple praised monstrous synergies and annual cost savings of $2 billion a year coming from the – ahem – tie-up. Hope springs eternal, but currently, the value of this dubious investment  is deflating faster than a popped balloon. Even GM is realizing it and tells the Treasury that it may have to write down that investment if things don’t get better soon.

The ever so vigilant Reuters actually went to the trouble of reading the complete 10-Q GM filed with the SEC in connection with GM’s recent quarterly report. In that filing, GM says: (Read More…)

By on June 25, 2012


Today, Germany’s Spiegel Magazin reports what we suspected since last December: “BMW and Toyota edge closer.”  Both, says the magazine, will “enter a close partnership that transcends the projects that were agreed in the past.” (Read More…)

By on May 30, 2012

Fiat’s John Elkann (not the one with a penchant for camo Ferraris and MTF escorts) put to rest any notions of Fiat acquiring a stake in Mazda, despite collaborating on some of their most iconic products.

(Read More…)

By on April 2, 2012

It must be the grand plan to make Iran walk or ride mules, because the alliance between GM and PSA is not about reducing over-capacity. This is what PSA told just-auto today. Confessed a PSA spokeswoman: (Read More…)

By on March 6, 2012

PSA Peugeot Citroen doesn’t just have problems selling its cars lately. It also has problems selling its stock. To move the paper, a tried and true tactic is employed: Cash on the … where do you put the cash when you sell shares at a fire sale deep discount? (Read More…)

By on March 1, 2012

 

GM and PSA praised monstrous synergies and annual cost savings of $2 billion a year as an effect of the alliance that was announced yesterday. The savings won’t come immediately, rather in about 5 years from now. Moody’s thinks it’s a bad deal, and did cut PSA’s debt rating to junk status. (Read More…)

By on July 18, 2011

“Right now, there is no specific joint development project going on with Volkswagen,” Suzuki Executive Vice President Yasuhito Harayama told reporters who came to Suzuki’s headquarters in Hamamatsu, Japan, to meet four executive vice presidents of Suzuki. Come to think of it, there had been no progress over the past 18 months in the much feted partnership between Suzuki and Volkswagen, Harayama said.

The man who just cut deep in the fraying strands of the tie-up between Volkswagen and Suzuki would have all reason to say everything is fine.  Harayama is a former bureaucrat at Japan’s economy and trade ministry who was hired by Suzuki two years ago. He is in charge of relations with Volkswagen. It is not in his interest to admit defeat.

According to comments made by Harayama to Ran Kim of Reuters, one of the sharpest reporters on the Japanese auto beat, relations between Wolfsburg and Hamamatsu turned into a deep freeze when Volkswagen tried to “wield influence over Suzuki’s management.”

“It was made very clear when we tied up with Volkswagen that we did not want to become consolidated, and that we would remain independent,” Harayama said.

Before anything will happen between Suzuki and Volkswagen, the deal needs to be renegotiated. (Read More…)

By on June 14, 2011

Before Fiat snapped up Chrysler from the US taxpayers for a song, it saw the Indian firm Tata as another logical partner for a long-term alliance. After Tata bought Jaguar/Land Rover, the auto media was awash in rumors that the British brand would share components with Fiat’s Alfa-Romeo brand. When Tata came out with the Nano, there was speculation that Fiat’s dealers in Europe and Latin America could be used to sell the low-cost car, even rumors of a Fiat-branded version were floated. Fiat even tried to sell Tata on one of its notoriously nasty Italian plants. What did surface from Fiat and Tata’s flirtations: a joint venture in India that, by all accounts, is going not well at all. And now, with Fiat distracted by its Chrysler rebuilding project, Ratan Tata is expressing his displeasure with his firm’s Fiat tie-up, telling The Hindu Businessline

I have to admit that so far, the venture with Fiat has not been as active as we had thought… I think that Fiat has to launch more models into the market to keep dealers interested. It also has to look at its cost structure in terms of parts and components. So the joint venture needs to be looked at quite critically and until that happens, it’s not going to be optimised… As far as what else we can do with Fiat, I think Sergio Marchionne and I can really talk to each other. However, at the working level, it hasn’t quite been that way. We have looked at Latin America to do something together, but things haven’t moved as they should have done

(Read More…)

By on February 23, 2011

Ever since Volkswagen bought not quite 20 percent of Suzuki a little more than a year ago, industry observers said: “Now what?” To this day, the couple remains childless. Lately, there have been rumors that the impatient German side is pushing for offsprings, whereas the Japanese side stays chaste. Now finally, there might be results – if India’s Economic Times has the correct information. (Read More…)

By on February 21, 2011

It must be Russian week. Yesterday, it was Ford and Sollers (and Sollers minus Fiat/Chrysler). Today, it’s Volkswagen and GAZ going to the altar. The two plan a joint venture to produce 300,000 cars per year in Russia, The Moscow Times reports. (Read More…)

By on February 7, 2011

CEO Sergio Marchionne certainly suggested as much in a speech at the NADA convention over the weekend, in which he said

Who knows? In the next two or three years, we could be looking at one entity. It could be based here

From the perspective of the American taxpayer, this would certainly be the favorable outcome. After all, Fiat didn’t put a single Euro into the restructured Chrysler, and national bailouts don’t usually result in the expatriation of the bailed-out firm. But the US Treasury department isn’t the only master Fiat has to serve, and Marchionne’s suggestion that the Fiat-Chrysler alliance has touched off something of a “firestorm.” The Financial Times reports that

Pierluigi Bersani, leader of the [Italian] opposition Democratic party, demanding an explanation from Mr Marchionne said it was unacceptable for “Turin and the country to become a suburb of Detroit”.

Industry Minister Paolo Romani adds [via the Montreal Gazette]

The head of the carmaker must remain in Turin

And with Italian backlash against a possible Detroit headquartering of the Fiat-Chrysler alliance building, Marchionne is backpedaling furiously.
(Read More…)

By on December 31, 2010

Phew.

Did you hear that? That was a sigh of relief, emanating from the few souls that are still holding the fort at Volkswagen in Wolfsburg and Porsche in Zuffenhausen. The sudden release of long held breath was caused by U.S. District Judge Harold Baer, who dismissed a lawsuit by 10 hedge  funds who accused Porsche of securities fraud during the Wiedeking/Härter hijinx. The hedgies claimed more than $2 billion in damages, which gave Volkswagen pause in fully absorbing Porsche. Now, they can floor it.

What tripped the claimants? (Read More…)

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