We did not believe that EU regulators would let France’s government bailout of GM’s alliance partner PSA skate through unchallenged. State aid to companies is against EU rules, and refinancing of Banque PSA Finance is state aid EU Competition Commissioner Joaquin Almunia wrote in a letter to the French government. This according to a report in the French daily Les Echos. (Read More…)
The fate of PSA and the Algerian people has been intertwined for decades. The group’s Aulnay plant, which is due to close, was originally staffed by immigrants from North Africa, lured by the promise of a better life and secure jobs in France. And while Peugeot sales withered in France, the brand has been traditionally strong in North Africa, with 2011 bringing a 93 percent increase in sales for Peugeot.
But Algeria’s push for a domestic car industry doesn’t seem to include PSA. Arch-rival Renault is due to set up a factory in the country, but PSA has apparently rejected overtures from the French government to take a stake in the ailing car maker.
Peugeot is deepening job cuts at its French factories, with another 1,500 positions set to be made redundant as part of a massive cost-cutting effort. Meanwhile, rival automaker Renault is expanding its operations in Morocco as its Dacia brand continues to steamroll through the European market.
Peugeot will eliminate an additional 1,500 French jobs by 2014, bringing the previously announced 8,000 layoffs close to 10,000, PSA managers told union representatives yesterday. (Read More…)
Next up in the “we couldn’t make this shit up” category – PSA and Citroen were hit by strikes after workers were called out for being unproductive.
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.
PSA is looking to challenge Renault-Nissan’s dominance of the low cost car segment with a new sedan branded as a Peugeot.
There was the Cadillac of minivans. A different kind of company selling a different kind of car. A Swede with no compromises, and a Frenchman that went from strength to strength.
Daihatsus that were perhaps, a bit too modest, by skinny dipping their unknown name in a slogan-less lake. And then we had that crazy distant Yugoslavian cousin who bragged about a ‘road back to sanity’ while his neighbors blew up his plant.
Fans of HBO’s hit show The Wire will remember The New Day Co-Op, a coalition of Baltimore heroin dealers who band together in part to get better deals on their drug supply and remain strong against law enforcement and rival gangsters. Half a world a way, a similar proposal was floated by Fiat CEO Sergio Marchionne, but never came to pass.
“When you do everything right but too late, you do it all wrong. Before reaching a dead end, PSA decided to forge a partnership with a manufacturer [General Motors] that I don’t consider to be among the industry’s leaders of the pack. Overall, I think there is a lack of ambition [when it comes to product] from the French manufacturers.”
More bad news from PSA – production of the brand-new Peugeot 208 subcompact will be cut by one third, as PSA grapples with an imploding market for small cars in Europe.
M. Peerson writes:
Well, I think it is time to replace the Pug. My little 505 has crossed the country, oh I do not know how many times. I mean I just did a round about from Westminster CO (North Denver) to Roundrock TX (North Austin) back to Benton CA (Mammoth lakes) and it is still running fair to decent for a car that I have replaced the speedo on two times. Actual millage is up past 400K closer to 440,000 miles as I clock it with the log book. (Read More…)
Italy once had one of the highest rates of car ownership in the world, with 60 cars for every 100 people. But in 2011, bicycles outsold cars for the first time in decades.
Ho Chi Minh was a mysterious guy; even after reading the definitive biography of the revolutionary schemer who changed pseudonyms as often most of us change our socks, I still couldn’t tell you much about the man who is now his country’s equivalent of all of America’s Founding Fathers rolled into one. However, I can tell you what Ho Chi Minh drove! (Read More…)