Since Groupe PSA expressed an interest in buying up Fiat Chrysler Automobiles, the Jeep brand has ramped up talk about the merits of electrification – particularly in places like Europe. The off-road-focused brand even has a plan to offer zero-emissions compliant vehicles in every segment by 2025. However, the only vehicle Jeep’s currently producing that seems to support those claims is the Wrangler 4XE PHEV and it’s still dependent on gasoline for journeys beyond 21 miles.
But that’s supposed to be changing now that the rumor mill is flush with new suggestions that Jeep is working on a small SUV that will be wholly dependent upon electrical propulsion. Those claims have been confirmed by Jeep’s leadership, with hints that it might be getting a few friends.
American automotive brands have never really caught on with the typical Japanese consumer. While we’ve done numerous dives trying to understand why the gist is that our tastes don’t typically overlap and they generally prefer to buy domestic. Foreign marques are comparatively rare, frequently German, and are generally owned by those looking to flex their status with an imported luxury vehicle.
U.S. brands that were on the market began retreating as they began pulling smaller automobiles from their lineup. But Jeep has stuck it in there and things are reportedly beginning to pay off. The automaker’s distinctive styling seems to be resonating with people in Asia and it’s really the only historically American nameplate that’s managed to find an audience in the Land of the Rising Sun.
Carlos Tavares, CEO of Groupe PSA, believes the secret to mainstreaming electric vehicles may have something to do with the industry being able to sell them at a profit. The French automaker’s boss has expressed concerns about a segment that’s almost entirely propped up by taxpayers — sounds likes someone might have taken a business course before running a multinational automaker!
It’s not that EVs are bad; they’re just too novel to be a bargain. Tavares believes the high development costs associated with newer technologies have effectively made electric cars money-losers without financial assistance from the government. He thinks their ultimate success (or failure) hinges upon finding a way to make them profitable without being perpetually subsidized by the government while reducing the amount of raw materials required for battery manufacture. As a bonus, he hinted that automakers might have juicer R&D budgets if they prioritized spending — hopefully accelerating the process of making EVs a little easier on everyone’s bank account.
“Affordability will be the challenge for the next five years in terms of costs,” Tavares told the Financial Times this week. “Those breakthroughs need to come from real estate, distribution costs, sourcing all the components of cost structure will have to be combined to bring this affordability.”
PSA Group CEO Carlos Tavares has bucked the notion that his company’s merger agreement with Fiat Chrysler Automobiles needed its terms massaged. Living through the coronavirus should be proof enough that automotive partnerships are essential for weathering the coming economic storm, and that governments shouldn’t stand in the way — or so goes the theory.
During PSA’s annual shareholder meeting on Thursday, the CEO suggested that the poor condition the global auto industry finds itself in makes this a poor time to discuss the issue. Tavares believes the unsavory conditions created by COVID-19 makes cost savings even more vital and that partnering with another automaker is its best bet to stay healthy. “The merger with FCA is the best among the solutions to cope with the crisis and its uncertainties,” he said.
Executives from Fiat Chrysler Automobiles (FCA) and PSA Group are reportedly concerned that their companies are in for an extensive probing by the European Commission before their planned merger can take place. Ideally, the duo have said they want to finalize the deal early in 2021, but the prolonged investigative dive may force them to readjust that timeline.
The European Union has historically been a big fan of antitrust investigations and often tries to predict future business actions to address how newly formed organizations might impact the market overall. It’ll be a difficult task, what with automotive sales suppressed by coronavirus lockdowns and the global economy looking particularly grim.
Few are under the impression that the merger will be blocked, however.
Regulatory and shareholder approvals will take some time, but the pending merger between Fiat Chrysler and France’s PSA Group is now chiseled in stone. The two automakers signed a binding combination agreement on Wednesday, positioning their respective companies for a 50:50 tie-up and the creation of the world’s third-largest automaker (by revenue).
Going by sales would make it the fourth-largest.
The move comes after the French government, which owns 12 percent of PSA, gave the deal ther green light, with the Peugeot family offering its own thumbs-up.
Undaunted by General Motors’ racketeering lawsuit, Fiat Chrysler and partner Groupe PSA have told employees that the tentative $50 billion merger they agreed on last month will kick off in earnest in a matter of weeks.
The two automakers imply a binding agreement will be signed before year’s end — right on schedule.
There’s a ways to go before Fiat Chrysler and France’s Groupe PSA officially slip the ring onto the other’s finger, but the engagement seems strong. Stronger, in fact, now that a majority of labor unions representing PSA workers have voiced approval for the proposed merger.
As the wedding day approaches, European labor bosses promise to dig through any and all agreements, searching for any clause or decision that might hurt their members.
Since acquiring Opel and Vauxhall from General Motors, France’s PSA Group has dropped not-so-subtle hints that it wants back into the American market. Chief executive Carlos Tavares said the group is already engineering upcoming models to meet U.S. regulations. “That means that from three years down the road we’ll be able to push the button, if we decide to do so, in terms of product compliance vis-a-vis the U.S. regulations,” he explained during the Frankfurt Auto Show.
That means Citroën and Peugeot should have a few vehicles ready for export after 2020. However, selling them won’t be a piece of cake. PSA doesn’t have an established dealer network in the United States, nor does it have a corporate friend in the industry that might allow the company to borrow one.
Still, the European auto group doesn’t seem all that worried. Rather than worry about asking its automotive neighbors to loan it a cup of sweet dealership sugar, it noticed a lot of people prefer aspartame and acesulfame potassium. PSA plans to take a modern, tech-focused, affordable approach to the problem.
It’s likely the vanguard of the invasion force is already on Georgia soil, probably after landing at Hartsfield-Jackson following a nice Air France flight from Aéroport de Paris-Charles-de-Gaulle. Don’t be scared, though. These people are delivering choice to new car buyers, at least once their plan is fully underway.
Groupe PSA, maker of Peugeot, Citroën, and DS vehicles, announced Tuesday that Atlanta will become home to its new North American headquarters. It’s an early but crucial step in the company’s decade-long plan to return to the American automotive scene.
Forget all about PSA Peugeot Citroen. It’s dead. Well, the name, anyway.
As part of its five-year corporate strategy, dubbed “Push to Pass,” the French automaker is rebranding itself as Groupe PSA and dropping hints of a tentative return to the U.S. market.
PSA’s sales and profitability are growing again thanks to a new product strategy and a bailout by the French government, but CEO Carlos Tavares wants to see more gains by branching out into new markets.
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- Jwee I think it is short sighted and detrimental to the brand. The company should be generous to its locked-in user base, treating them as a resource, not a revenue stream.This is what builds any good relationship, generosity to the other partner. Apple does with their products. My iPhone is 5 years old, but I keep getting the latest and greatest updates for free, which makes me feel valued as a customer and adds actual value. When it is time for a new phone, Apple past treatment towards me certainly plays into my decisions (as did BMW's - so long subscription extracting pigs, its been a great 20 years). Imagine how much good will and love (and good press) Polestar would get from their user base if they gave them all a "68 fresh horses" update overnight, for free. Brand loyalty would soar (provided their car is capable).
- ToolGuy If I had some space I would offer $800 and let the vehicle sit at my place as is. Then when anyone ever asked me, "Have you ever considered owning a VW?" I would say "Yes."
- ToolGuy In the example in the linked article an automated parking spot costs roughly 3% of the purchase price of the property. If I were buying such a property, I would likely purchase two parking spots to go with it, and I'm being completely serious.(Speaking of ownership vs. subscription, the $150 monthly maintenance fee would torque me off a lot more than the initial acquisition cost.)
- ToolGuy "which will be returned as refunds to citizens of the state" - kind of like the Alaska Permanent Fund? Make the amount high enough and I will gladly move to California to take advantage (my family came close to moving there when I was a teen, and oodles of people have moved from CA to my state, so I'm happy to return the favor).Note to California: You probably do not want me as a citizen.
- ToolGuy Nice torque figure.