PSA Still Burning Cash, Banque PSA Downgraded To Junk
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.
More by Derek Kreindler
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rumor has it the cash infusion by GM was reward for cutting ties with Iran. sounds reasonable to me given that the investment makes no sense whatsoever for any other reason. plus that nitwit, egomaniac Girsky is a sure sign of nothing good. can anyone give me any reason why this bankster is still around? Rattner ousted Wagoner but left his Rasputin.
Ach.... my favorite color in the whole world! Whatever kind of blue that is.... bring it back. And no metallics.
Why so much attention to the surrender monkeys. Irrelevant.
Another one goes to Chinese garbage can. In the end Chinese will end up with all garbage from around world in exchange for real cash. French could make fortune by selling PSA to highest payer from China and as bonus save billions of taxpayer's money. But of course in real world common sense does not apply to Government and 50% of its people.