#psa

Putting Brazil aside for a second (Sorry, Marcello!) Asia is where the car industry is looking for their next piece of pie. There’s Russia (let’s face it, Russia is more in Asia that it is in Europe), China, Japan and India. All markets with either big potential and/or plenty of customers. But there is a 5th place which always gets overlooked. South East Asia. Countries like Thailand, Indonesia and Singapore are growing just as well, as the aforementioned countries, but never get the same attention. Well, someone has noticed their potential.

PSA Peugeot, and their joint venture with China’s Dongfeng, are planning to export cars made in China to Russia, said Gregoire Olivier, Peugeot-Citroen’s recently appointed head of Asian operations, to The Beijing News via Gasgoo.

PSA wants to sell cars made at the Chinese JV in other regions of Asia and Russia as early as next year, said Olivier. The only thing that’s keeping them from doing it right now is the lack of a logistics platform. But they are building that in Shanghai as we speak, and it should be up and running next year.

Because Olivier was recently appointed, he may have missed various memos, and will be forgiven. Here a quick update:

It’s no secret that I’m a bit doubtful about the runaway success of the all-electric vehicle. The infrastructure obstacles are just too great. There is one market where plug-ins make sense: Light delivery vehicles. Never cruise too far from the warehouse. Can be charged while van is being loaded. Lots of regenerative braking. Mitsubishi and PSA think the same. They will co-develop a compact commercial electric vehicle for the European market. Production will begin by 2012, says The Nikkei [sub].

It used to be that joint ventures with Chinese manufacturers were strictly for Chinese consumption. The Chinese would like nothing more than to expand to other markets with their foreign branded products. Strict joint venture contracts typically forbid just that. Sure, sometimes there are some small scale exportation tests. But usually, what is made in China, stays in China. Contracts can be changed or amended. More and more Chinese automakers seek to expand their relationship with joint venturers beyond China’s borders.

Once upon a time, the Maximum one declared that bringing diesels to the United States would only be possible by the use of urea. You know, the stuff that is is the main nitrogen-containing substance in the urine of mammals. Which can also reduce the NOx from diesel exhaust. Using urea would allow diesels to meet Tier II Bin 5 standards. The Maximum one further decreed that the extra cost of this after treatment system would make diesels prohibitively expensive. (Unless the driver uses man-made urea, but let’s not even go there.) Then, he mentioned the California standards which were way tougher than Tier II Bin 5. This would effectively kill diesels in the US as they wouldn’t be 50 state compliant. Then Volkswagen introduced the TDI Jetta which was 50 state compliant. What made this extra special was that Volkswagen did it without using any urea after treatment. Something which Bob Lutz said wasn’t possible. There was a diesel hurdle that was gone. Who else could be bringing diesels to the United States?

After on-again and off-again attempts at an Eurasian marriage ( which I would unreservedly endorse,) Mitsubishi and PSA are doing the thing currently en vogue in Europe: Live happily in sin, and produce little ones. Very little ones.

Renault has made a big splash with their el-cheapo Dacia in the European market. In the first 4 months of this year, 17 percent of Renault’s sales came from Nicolae Ceausescu’s former auto works in Romania. France’s PSA doesn’t want to take it any longer, and now plans for their own low-cost line.

France’s PSA wants a bigger slice of the growing Chinese pie. They agreed to set up a joint venture with government-owned Changan. Peugeot already has a joint venture with Changan’s rival Dongfeng, while Changan has a joint venture with Ford. Nevertheless, the new JV will “not compete directly with other partnerships,” the companies said in a statement published by Bloomberg.

The French-Japanese relations continue to bloom. Here is the latest tie-up. Forget former on-again, then off-again relationships. This time, it’s serious. The Nikkei [sub] reports that Mitsubishi Motors and France’s PSA have tied the knot and will jointly breed new sports utility vehicles.

The European Car Manufacturers Association has released its March numbers for Europe. At first glance, they are promising: New car registrations in the EU (as defined in Brussels) were 10.8 percent higher than in the same month of 2009. In the EU27 plus EFTA (including Iceland, Norway and Switzerland) registrations rose 11.1 percent. From here on, we will use the EU27 plus EFTA definition, just like the industry usually does.

A lot of the growth is the last hurrah caused by expiring cash-for-clunkers programs. Then, there is the Ford surprise, which we had been tracking since yesterday.

You may not know that Cammy is a Chemist by trade. With a degree at college and university. If you bug me, I know enough to blow you up. That aside, in chemistry, there is a theory called “Le Chatelier’s Principle”. It states that:

“If a chemical system at equilibrium experiences a change in concentration, temperature, volume, or partial pressure, then the equilibrium shifts to counteract the imposed change and a new equilibrium is established.”

Now why am I telling you this?

The BBC reports that Daimler is deserting Iran.

Who was Europe’s leading brand in March?

Volkswagen? Wrong.

PSA? Wrong.

Renault? Wrong.

Reporters didn’t hold a gun to Fiat/Chrysler CEO Sergio Marchionne’s head when they asked him where the next big industry consolidation would occur. He didn’t have to give an answer, and Automotive News [sub] certainly didn’t have to run it as a standalone story. But then, Marchionne’s Fiat is the Don Juan of the global auto industry, having been linked to flirtations with nearly every automaker in the game. If anyone has an idea of the M&A picture in Europe, it’s Sergio. His reply?

The next merger will probably be French. [PSA Peugeot-Citroen] tried with Mitsubishi and they will try with someone else… An alliance involving France and Germany is not that easy, but [the Renault-Daimler-Nissan deal is] a step in the right direction

PSA Peugeot-Citroen and BMW currently develop transverse four cylinder engines together… does Marchionne foresee a deeper relationship?

Guess who was matchmaker for Daimler’s three-way tie-up with Renault and Nissan? The Nikkei [sub] thinks it was Volkswagen. VW’s alliance with Suzuki “spooks Daimler into thinking small,” says the Tokyo business paper. And that’s quite a change for formerly bigthinking Daimler.