PSA/Peugeot-Citroen and General Motors may scale back alliance

Article by Anita Panait, on October 24, 2013

The alliance between PSA/Peugeot-Citroen and General Motors Co. may be diminished, a move that may lead to an intensified relationship with Chinese carmaker Dongfeng Motor Corp. PSA said that plans for a joint platform with GM for subcompact cars are "under review," adding that planned mid-term synergies of $1 billion for PSA from the GM alliance may be revised downward.

PSA logged a 3.7-percent drop in third-quarter revenue in the third quarter of 2013 to EUR12.11 billion ($16.68 billion) from EUR12.58 billion in the same period in 2012.  PSA continues to lose market share in Europe this year to Volkswagen and other carmakers.

Its core auto unit suffered a 5.8-percent decline in revenue to EUR8 billion, reflecting "growing pressure on market shares from premium and low-cost brands" and the negative currency effect attributable to the Russian ruble, Brazilian real, Argentine peso and British pound.

The French carmaker reiterated its target to reduce cash consumption by at least 50% in 2013, after consuming around EUR3 billion ($4.1 billion) in 2012. According to PSA spokesman Jean-Baptiste Thomas, its alliance with GM is proceeding as scheduled, but noted that the partners have other projects under review.  He said that some projects have been dropped because they are not economically feasible, adding that they are taking the projects one-by-one and assessing their economic feasibility first.

PSA recently disclosed plans to shift production of a compact minivan to GM’s Zaragosa site in Spain. The US carmaker’s Opel unit will produce a jointly developed small minivan that may replace the Opel Meriva and Citroen C4 Picasso at the site starting in late 2016. GM spokesman Ulrich Weber remarked that the alliance is “moving forward with the implementation" of projects that have already been agreed upon.

Topics: psa, gm

If you liked the article, share on:

Comments

Recommended

Earlier this month, we learned that France has made moves to ban diesel and gasoline fueled cars by stopping them from entering the city. More than that, they plan to...
by - July 19, 2017
The new 2018 Rolls-Royce Phantom VIII is on the way, but still, all we had been seeing are camouflaged prototypes of the eight generation of this iconic nameplate. Fortunately though,...
by - July 19, 2017
Would you have ever imagined a Mercedes-Benz developing an upscale pickup? We first saw this last October as a concept car and now, the production model of the Mercedes-Benz X-Class...
by - July 19, 2017
Haven’t you ever wondered how Ferrari’s names and numbers were actually derived? As it is Ferrari’s 70th year in the industry, we believe that it’s only fair that we shed...
by - July 18, 2017
Earlier this month, we were getting hints that Hyundai, along with its sister company Genesis, isn’t doing so well in the United States as well as in Europe. So this...
by - July 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries