#Peugeot

“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.”

– Thierry Morin, former CEO of Valeo

Ratings firm Fitch released a memo Tuesday outlining some possible problems relating to the proposed GM-PSA merger.

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.

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!

France is asking the EU to look into an uptick in South Korean car imports, which could possibly result in tarrifs being slapped on the vehicles, despite an EU-South Korean free trade agreement.

The most successful brands in our industry don’t have much meaning to them.

Toyota, Chevrolet, Ford, Hyundai, Kia, all of these are names that wouldn’t evoke much of any imagery had their manufacturers never existed.

Mercury and Saturn are popular planets that make you think of space and the futuristic pursuit of those faraway places. Acura should be quite accurate and precise. Rams are tough. Infiniti pays homage to the outer limits of capability and performance.

Yet all of these names experienced failure, or ultimately failed, due to the key essential ingredient within any brand’s reputation.

Product.

The establishment of a new manufacturing base in North Africa has fascinated me for the past couple months – though few others seem to really care. The leader in this movement has been Renault, which is setting up plants in Morocco and Algeria to build their popular, low-cost Dacia vehicles in factories where employees earn a fraction of what a French assembly line worker would make.

PSA doesn’t have a low-cost brand of it’s own, so jobs haven’t gone across the Strait of Gibraltar – yet. But the closing of the Aulnay plant, where a massive contingent of North African immigrants (now French citizens) work, is a compelling snapshot of the socioeconomic and racial dynamics of France that happens to intersect with the auto industry.

It’s been a long time coming, but PSA has finally done it ; the parent company of Peugeot and Citroen is cutting 8,000 jobs and closing an assembly plant outside Paris, as the carmaker tries to cope with a sagging market and excess capacity.

Here’s to all my American friends and readers; your glorious country is 236 years old, still the land of opportunity, where immigrants from all over the world flock to make their dreams come true. But you must wait an absurdly long time to import clapped-out world-market hot hatches, like this Peugeot 106 GTI. Soviet Canuckistan isn’t so bad now, is it?

Bloomberg is reporting that Peugeot may expand their job cuts in France, with the potential for 10 percent of their domestic warehouse to be cut.

With all the rumors about German-built Citroens and re-badged French MPVs, it’s time to do what North American car lovers do best; cast a greedy eye upon vehicles we can’t get, and talk about how much we’d like them.

With Opel’s fortunes in the toilet and Chevrolet vehilces gaining ground in Europe, Opel brass are looking at an obvious solution – stop building Chevrolet products in South Korea and start building them in Europe.

Even though Opel will be tasked with developing the next Citroen C5, PSA will be responding in kind by providing some expertise of their own, in the form of small minivans.