French automaker PSA may be preparing to bring its luxury arm Citroen DS, to the United States within the next few years, Car and Driver reported.
Citing a source within the company, a U.S. market launch would be “necessary” for the brand’s viability and a decision on whether to bring the French luxury cars would be coming within the next few years.
Any return for the French automaker would be fraught with difficulty: no dealer network, no service and their cars are decidedly less-than-American sized. The automaker currently offers a DS3 premium minicar, a DS4 premium subcompact and a DS5 family wagon. (Read More…)
The long-awaited return of Peugeot Citroen to North America could be in the form of their new premium DS brand, but don’t get your hopes up just yet.
On this day in 1991, Peugeot officially announced its exit from the U.S. market.
PSA will consolidate their small car production at a factory in Slovakia, as the struggling auto maker looks to cut labor costs and increase margins on small cars.
PSA and Mitsubishi may discontinue their electric vehicle partnership in the next 12 months, according to PSA CEO Carlos Tavares.
Today’s chart of the day comes courtesy of JATO Dynamics and Automotive News Europe, showing last year’s C segment car sales in Europe (click to enlarge).
Sources close to the situation tell Reuters that Carlos Tavares, Carlos Ghosn’s former second in command at Renault, could start running rival PSA Peugeot Citroen as soon as March. Tavares officially joined PSA as CEO-in-waiting on Jan. 1. According to Reuters, Peugeot had previously said only that Tavares would take over sometime this year. Peugeot Chairman Thierry Peugeot told Le Figaro in an interview published over the weekend that the company’s board of directors would soon decide on the official transition date.
For the past few months, sanctions against Iran for their nuclear ambitions have sidelined PSA and Renault from the Persian market. Behind the scenes, General Motors outmaneuvered PSA despite their one-time alliance allowing them to muscle their way into aan emerging market via loophole abuse and an unknown quantity of Camaros. With GM out of the way, however, PSA would now be free to regain their footing once sanctions were lifted.
PSA won’t be alone in the upcoming battle, of course, as their compatriots at Renault have plans to return to Iran to reclaim what was lost, and then some.
GM CEO Dan Akerson and PSA CEO Phillipe Varin when the tie-up between their two companies was announced in 2012. Now, Akerson and Varin are both on their way out and GM has sold its 7% stake in PSA, though the companies continue to jointly work on some projects.
General Motors sort of has a reputation for bad investments in Europe. In 2000, GM made a deal with Fiat wherein Fiat sold 20% of Fiat Auto to GM for $2.4 billion and the Italian automaker took a 6% stake in GM. GM also received a put option which in certain circumstances would have obligated the largest American car company to exercise that option and buy the rest of Fiat. In 2005, to get out of that deal, GM paid Fiat another $2 billion.
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.