With Friends Like These: GM-Partner PSA Peugeot Citroen Gets It On The Chin

Bertel Schmitt
by Bertel Schmitt
with friends like these gm partner psa peugeot citroen gets it on the chin

GM got itself a great new partner. Global sales of PSA Peugeot Citroen, the besieged company that is now 7 percent owned by the General, dropped 13 percent, Reuters says. PSA’s European sales dropped 15 percent, which illustrates how much PSA’s ill fortunes are tied to those of Europe.

“The Group remains adversely impacted by an unfavorable market mix, with the most promising markets for the Peugeot and Citroën brands (France, Spain and Italy) all suffering from deep recession,” PSA says in a statement. Those markets promise more blood and tears for the next few years.

Sales of CKD (complete knocked down) units are knocked down by 31 percent to 143,000, and you probably know why. Says PSA:

“The increased sanctions against Iran made it impossible to finance Iran-bound sales of CKD units, which led the Group to suspend these sales during the first half, in compliance with international regulations.”

No word of parts sales to Iran. They can be more profitable than a few CKD units.

Tow thirds of PSA’s sales are in Europe. In its second-largest market, Latin America, PSA lost more than 20 percent in the first six months of 2012. PSA is an also-run in the growth markets of China and Russia. It sold an additional 20,000 units in these markets from January through June, a drop in the badly leaking bucket.

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  • Marcelo de Vasconcellos Marcelo de Vasconcellos on Jul 06, 2012

    Here in Brazil, the problem is threefold: 1 - The cars are too pricey. The competition offers the same at better prices. Why buy? Maybe design, but design is not enough to move the metal in price conscious markets such as Latin America. To wit, with the Logan family line Renault is gaining on the market. Good price and content, simple design, good price win. And the opposite of PSA strategy. 2 - Dealers. Considered quite bad in technical and 'ethical' terms. Anybody after an experience with Peugeot dealers runs back to their disliked but not despised Fiat or VW dealer. Learn from Toyta or Hoinda dealers. Somehow they keep customers happy. 3 - Lesson learned from Athos Nobile, aftermarket. Parts are expensive, some are hard to get and your local shadetree mechanic is wary of messing with a PSA product. Learn from Fiat and VW, parts readily and cheaply available. They teach indy mechanics and give them info on the cars. If they don't, PSA might as well pack up and leave. Right now, few would notice.

    • See 3 previous
    • Marcelo de Vasconcellos Marcelo de Vasconcellos on Jul 06, 2012

      @J Mendez Hola de Nuevo J Méndez! You can find the reports on the link below. They will pull the car apart this month and publish it in the magazine next month. Should be interesting. BTW, keep checking the site as usually there is a delay between what they publish in print and on-line. But eventually everything they publish goes on-line. Hummm, their car had no problems with the motor AFAIR. quatrorodas.abril.com.br/blogs/longaduracao/category/peugeot-3008-allure/ Or, snce you know Portuguese just log on to www.quatrorodas.com.br and navigate through the site.

  • Vent-L-8 Vent-L-8 on Jul 06, 2012

    So long as we are tied up with PSA shouldn't we be getting something out of it? Everyone stop what you are doing and Google Peugeot 508 rxh or the Citroen DS5. This would seem to be the perfecta chiox for what people on this website (me included) seem to lust after. Lets roll the tape: Wagon = check 4 wheel drive = check manual = sort of check diesel = check hybrid diesel actually = check crazy high fuel economy = 57mpg combined city/highway PSA comfort: As an owner of a 1972 Citroen DS-21 Pallas, just take my word for it. This would be the one car that would cause me to break my "no GM ever again, ever" policy. check the review: http://www.thetruthaboutcars.com/2012/05/review-citroen-ds5-hybrid-4/