Retail News CRM

Tag: peugeot

  • Fiat Chrysler, PSA Merger To Include Investor Loyalty Scheme

    Fiat Chrysler, PSA Merger To Include Investor Loyalty Scheme

    Fiat Chrysler’s merger with Peugeot maker PSA will include a loyalty scheme to reward long-term investors and help prevent future takeover attempts, the prospectus for the planned tie-up shows. Italian-American carmaker Fiat Chrysler (FCA) and France’s PSA agreed to combine in a $38 billion all-share deal in December, uniting brands such as Fiat, Jeep, Dodge, Ram and Maserati with the likes of Peugeot, Opel, Citroen and DS.

    Holders of shares in Stellantis – as the merged group will be known – for an uninterrupted period of at least three years may receive a special voting share in addition to each common share, the companies said in the prospectus.

    Such a move could make management changes and takeover attempts of Stellantis more difficult, they added. The tax consequences of the loyalty scheme are uncertain, the companies said.

    Stellantis will have a Dutch-domiciled parent company and its shares will be listed in Paris, Milan and New York.

    Loyalty schemes are common for companies in the Netherlands and have already been used by Exor, the holding company of Italy’s Agnelli family and FCA’s controlling shareholder, not least during the spin-off of Ferrari, boosting Exor’s grip on the luxury sports car maker.

    PSA CEO Carlos Tavares will run Stellantis and will receive a 1.7 million euro ($2.02 million) bonus upon completion of the merger.

    FCA CEO Mike Manley will receive “a recognition award with a value equivalent to approximately five times his annual base salary” and a cash retention after the merger if certain conditions are met.

    The two companies said they have agreed to review the potential distribution of 1 billion euros to shareholders, either through a dividend evenly before the merger, or to be distributed afterwards by Stellantis.

    PSA and FCA have filed the merger plan with antitrust authorities in 21 countries and the European Union. To date, they have obtained approval from 15 countries and a preliminary okay from Brazil which becomes final next week. The EU is also expected to authorise the merger, sources have said.

    Lees ook:

  • Fiat Chrysler, Peugeot Decide To Withhold 2019 Dividend Payout

    Fiat Chrysler, Peugeot Decide To Withhold 2019 Dividend Payout

    The boards of automakers Fiat Chrysler Automobiles N.V. and Peugeot S.A said on Wednesday it would not pay an ordinary dividend for 2019 this year due to a collapse in consumer demand resulting from the COVID-19 pandemic.

    The health crisis has thrown the global auto industry into the worst tailspin since the 2008-09 financial crisis. Consumer demand for vehicles has plummeted as governments across Europe and the United States have enforced lockdowns.

    Fiat has already finalized a plan in overnight talks with Renault, and the deal would be discussed at a meeting of Renault’s board on Monday.

    The two companies also confirmed that preparations for their merger are advancing with respect to antitrust and other regulatory filings.

    Lees ook:

    Lees ook:

    Lees ook:

  • Peugeot Maker PSA Says Demand To Fall Sharply, Keeps Margin Goal

    Peugeot Maker PSA Says Demand To Fall Sharply, Keeps Margin Goal

    French automaker PSA on Tuesday warned of sharp falls in demand for the sector this year after posting a 15.6% drop in first-quarter sales but maintained its mid-term operating margin goal.

    The maker of Peugeot, Citroen, DS, Opel and Vauxhall is working through a merger with Italy’s Fiat Chrysler but like its peers has been forced to shutter plants due to the coronavirus outbreak.

    The group said revenue for the January-March quarter stood at 15.2 billion euros ($16.47 billion).

    It maintained its target for an average adjusted operating target of over 4.5% for its automotive division over the 2019 to 2021 period.

    “Having secured liquidity and drastically cut costs, the group is now fully focused on preparing for the rebound in a chaotic economic environment,” Financial Chief Philippe de Rovira said in a statement.

    Little relief for Europe’s carmakers Monday as BMW says sales have plunged and Peugeot-owner PSA says it’s raising new funds to help it see out the crisis.

    PSA said it now expects the auto sector to fall by 25% in Europe and Latin America this year, by 20% in Russia, and by 10% in China.

    Like French rival Renault, PSA has been in talks with unions to try and work out a schedule to reopen its factories in France with new sanitary protocols.

    Its British brand Vauxhall is looking at temperature checks and shift rescheduling to plan the reopening of its two UK factories.

    France and many other European countries are still under strict lockdowns, though China is now emerging from confinement.

    Lees ook:

    Lees ook:

    Lees ook:

  • Peugeot To Repatriate Staff From China’s Wuhan Area After Coronavirus Outbreak

    Peugeot To Repatriate Staff From China’s Wuhan Area After Coronavirus Outbreak

    French automotive group PSA, maker of the Peugeot and Citroen brands, said in a statement it will repatriate expat staff and their families from the Wuhan area in China, which is at the center of an outbreak of coronavirus.

    It said that 38 people would be evacuated and that the initiative will be executed in full collaboration with the Chinese authorities and the French general consulate.

    PSA said the evacuees will remain in quarantine in Changsha before traveling back to their home countries.

    Lees ook:

  • Fiat Chrysler And Peugeot Sign $50 Billion Merger Deal

    Fiat Chrysler And Peugeot Sign $50 Billion Merger Deal

    Fiat Chrysler Automobiles and Peugeot S.A. have today signed a binding Combination Agreement providing for a 50/50 merger of their businesses. This merger creates the 4th largest global automotive OEM by volume and 3rd largest by revenue. The proposed combination will be an industry leader with the management, capabilities, resources and scale to successfully capitalize on the opportunities presented by the new era in sustainable mobility.

    The combined company will have annual unit sales of 8.7 million vehicles, with revenues of nearly 170 billion Euros, recurring operating profit of over 11 billion Euros and an operating profit margin of 6.6 percent, all on a simple aggregated basis of 2018 results.

    The combined entity will have a balanced and profitable global presence with a highly complementary and iconic brand portfolio covering all key vehicle segments from luxury, premium, and mainstream passenger cars through to SUVs and trucks & light commercial vehicles. This will be underpinned by FCA’s strength in North America and Latin America and Groupe PSA’s solid position in Europe. The new Group will have a much greater geographic balance with 46 percent of revenues derived from Europe and 43% from North America, based on aggregated 2018 figures of each company. The combination will bring the opportunity for the new company to reshape the strategy in other regions.

    The efficiencies that will be gained from optimizing investments in-vehicle platforms, engine families and new technologies while leveraging increased scale will enable the business to enhance its purchasing performance and create additional value for stakeholders. More than two-thirds of run rate volumes will be concentrated on 2 platforms, with approximately 3 million cars per year on each of the small platform and the compact/mid-size platform.

    Carlos Tavares, Chairman of the Managing Board of Groupe PSA, said: “Our merger is a huge opportunity to take a stronger position in the auto industry as we seek to master the transition to a world of clean, safe and sustainable mobility and to provide our customers with world-class products, technology and services. I have every confidence that with their immense talent and their collaborative mindset, our teams will succeed in delivering maximized performance with vigor and enthusiasm.”

    This technology, product and platform-related savings are expected to account for approximately 40% of the total 3.7 billion Euros in annual run-rate synergies while purchasing – benefiting principally from scale and best price alignment – will represent a further estimated 40% of the synergies. Other areas, including marketing, IT, G&A and logistics, will account for the remaining 20%. These synergy estimates are not based on any plant closures resulting from the transaction. It is projected that the estimated synergies will be net cash flow positive from year 1 and that approximately 80% of the synergies will be achieved by year 4. The total one-time cost of achieving the synergies is estimated at 2.8 billion Euros.

    Mike Manley, Chief Executive Officer of FCA said, “This is a union of two companies with incredible brands and a skilled and dedicated workforce. Both have faced the toughest of times and have emerged as agile, smart, formidable competitors. Our people share a common trait – they see challenges as opportunities to be embraced and the path to making us better at what we do.”

    Lees ook:

  • Fiat Chrysler Says Peugeot Talks Progressing Despite GM Lawsuit

    Fiat Chrysler Says Peugeot Talks Progressing Despite GM Lawsuit

    Fiat Chrysler (FCA) said on Thursday talks with Peugeot owner PSA Group to create a $50 billion carmaking group were going well, despite FCA being sued for “substantial damages” by General Motors late on Wednesday. General Motors (GM) filed the lawsuit in the United States, alleging FCA had bribed United Auto Workers (UAW) union officials over many years to corrupt the bargaining process and gain advantages, costing GM billions of dollars.

    “Talks are progressing smoothly,” an FCA spokesman said on Thursday about discussions with PSA to create the world’s fourth-biggest automaker. Shares in FCA were down 3.4 percent, while PSA shares were 1.4 per cent lower. Asked whether the lawsuit might lead to a review of the two companies’ valuations in the proposed merger deal, a source close to FCA replied: “No.”

    In a letter to employees, FCA Chief Executive Mike Manley said: “We are astonished by this filing, both it is content and its timing. We can only assume it was intended to disrupt our proposed merger with PSA.”

    FCA will vigorously defend itself against this “meritless” lawsuit, the letter, which was seen by Reuters, said. “We will not be slowed down by this act,” Manley said, adding: “Let’s keep the performance up as it has clearly got some of our competitors worried.”

    PSA declined to comment on the GM lawsuit and its potential impact on the merger talks.

    Lees ook:

  • European Factories At Risk In Peugeot-Fiat Merger

    European Factories At Risk In Peugeot-Fiat Merger

    Fiat Chrysler and Peugeot owner PSA’s pledge not to close factories if they merge is likely to come under heavy strain as the combined group would have spare production capacity of almost six million vehicles in a slowing autos market. The companies last week unveiled plans to create a $50 billion group that would leapfrog Hyundai, General Motors, Ford and Honda to become the world’s No.4 automaker, based on their combined 8.7 million vehicles sold last year.

    The new car and truck making giant would have a potential manufacturing capacity of 14 million vehicles, forecasters LMC Automotive told Reuters. But the industry has entered a downturn and the European small car market in particular – where both PSA and Fiat Chrysler (FCA) are heavily exposed – is under pressure.

    “The utilization rate would be low at 58%, which would leave the group with almost six million units of spare capacity worldwide,” LMC Automotive said. “Europe is likely to bear the brunt of any potential plant closures.”

    Labour unions and politicians have already voiced concerns about job losses, and both France-based PSA and Italian-American FCA have ruled out factory closures in an attempt to quell fears. But a deadline to meet 2021 and 2025 emissions goals in Europe adds pressure on FCA to adopt PSA’s more efficient engines, calling into question some of FCA’s engine plants in Europe – mainly in Italy, as well as in Poland – in particular.

    “The focus will be Europe, where sub-scale product lines, powertrains and future EV (electric vehicle) investments could be combined,” Bernstein Research analyst Max Warburton, said in a recent note.

    A combined PSA-FCA would have a market share of 22% in Europe, September registration data from auto industry association ACEA shows, leapfrogging Volkswagen which, with a market share of 20%, has been the largest carmaker in Europe.

    PSA has already helped Opel, bought from General Motors in 2017, to make progress with emissions targets by rolling out the group’s small car platform and engines to the Opel factory in Zaragossa, Spain, where it builds the Opel Corsa.

    The CMP platform is now used in factories in Poissy, France, Trnava, Slovakia, and Kenitra, Morocco to build Peugeot, Citroen and DS branded vehicles and could be extended to fit FCA’s Lancia, Alfa Romeo and Fiat models to boost economies of scale.

    The market for small cars is under pressure because emissions rules are forcing entry-level cars to add complex catalytic converters, making them less affordable.

    “Under the new CO2 targets these cars will need to get several updates that will be expensive. This will force some players to drop some of these models as the level of investment is very high,” according to Felipe Munoz, global analyst at JATO Dynamics, a forecasting firm.

    PSA has already axed the Opel Adam and Karl models because it became uneconomical to make these entry-level vehicles emissions compliant. Meanwhile, Ford has dropped its Ka model, which shared a platform with FCA’s Fiat 500.

    Overall, the market share of cars in the so-called A and B small car segments is expected to shrink to 38% in Europe by 2021, down from 40% last year, whereas demand for sports utility vehicles is expected to hold up well, LMC’s Sammy Chan said.

    As a result, low volume manufacturing plants in Europe are increasingly vulnerable, such as Fiat’s Kragujevac factory in Serbia and PSA’s Vauxhall plants in Ellesmere Port and Luton in Britain, LMC said.

    In terms of engine plants, PSA has major operations in Tremery and Douvrin in France, and has also retooled the former General Motors Szentgotthard factory in Hungary.

    FCA’s Fiat, Lancia and Alfa Romeo brands currently source their engines from plants in Termoli and Pratola Serra in Italy, as well as the Bielsko-Biala plant in Poland.

    “In terms of engine plants, it is likely that in the long term, one or two FCA plants in Europe would no longer be needed,” LMC said.

    Lees ook:

    Lees ook:

  • Peugeot, Fiat Chrysler Move Step Closer To Possible Merger

    Fiat Chrysler and Groupe PSA, the maker of Peugeot and Citroen cars, moved a step closer Wednesday to create a new global auto giant as the industry battles ever fiercer competition and the costly shift from traditional to electric cars.

    A source familiar with the matter told AFP that the board of PSA had approved the proposed multi-billion tie-up with its Italian-US Fiat Chrysler Automobiles (FCA) in a move that could create the world’s fourth-largest automaker.

    The deal still needs to be given the green light by FCA’s board, but the two sides could formally announce that they are in exclusive talks on Thursday, the source said.

    Earlier, both sides had said “there are ongoing discussions aimed at creating one of the world’s leading mobility groups”, but neither had offered any additional details.

    A person with knowledge of the matter told AFP on Tuesday that a merger — which is not guaranteed — would create a firm valued at about $50 billion (45 billion euros).

    The merger plans come on the heels of a failed attempt earlier this year to combine Fiat Chrysler with Renault.

    A combined FCA-PSA would produce the scale needed in an industry facing slowing demand, with 8.7 million vehicles sold per year and 184 billion euros in annual sales.

    The board of the combined group would consist of six PSA members and five FCA members, a source close to the talks said.

    Auto manufacturing globally — which accounts for 5.7 percent of global GDP and eight percent of goods trade — shrank by 1.7 percent last year by volume of vehicles produced, according to the IMF.

    If the deal goes through, PSA could gain access to the lucrative US market while fulfilling the long-held goal of late ex-FCA head Sergio Marchionne for a merger to survive escalating costs and competition.

    The tie-up would make the new automaker the fourth largest in terms of sales behind Volkswagen, Renault-Nissan-Mitsubishi, and Toyota, and would combine a host of well-known brands from Alfa Romeo, Jeep and Dodge to Citroen, Opel and Peugeot.

    Investors cheered the news. FCA shares in Milan closed up nine percent on Wednesday while PSA shares added four percent in Paris.

    “We’re in a period where grey skies are gathering over the auto industry. When business is harder, competition is stronger and margins get thinner,” said Flavien Neuvy, director of the Cetelem Observatory, a research unit of BNP Paribas.

    To offset the billions required to invest in advanced technologies, size is critical, Neuvy added.

    Talks to merge FCA with Renault broke down in June, scuppered in part by resistance from the French government, which owns a stake in Renault — as it does PSA.

    Analyst Michael Hewson at CMC Markets UK cautioned that political pressure could again be an obstacle, given France’s approximately 12 percent stake in PSA.

    “It is hard not to see that this attempt by Fiat might well go the same way as the failed Renault attempt earlier this year,” Hewson said in a note. “Business and government always make uncomfortable bedfellows.”

    France’s economy ministry said in a statement that the state would be “particularly vigilant” about jobs, corporate governance and preserving the industrial footprint when assessing any merger.

    Italian vice economy minister, Antonio Misiani, said it was “vital to preserve (existing) sites in Italy.”

    Under a merger, Carlos Tavares, the chief executive of Peugeot’s parent, Groupe PSA, would lead the company as CEO while John Elkann, FCA’s chairman, would be chairman, one source said.

    A new company would bring under one roof Alfa Romeo, Chrysler, Citroen, Dodge, DS, Jeep, Lancia, Maserati, Opel, Peugeot and Vauxhall.

    FCA is weaker in Europe than PSA, with its French and German mass-market brands. The company also lags in bringing electric cars to market and investing in new forms of mobility.

    PSA meanwhile is absent from the massive US market, where FCA sells the Chrysler, Jeep, Dodge and Ram brands.

    China’s Dongfeng holds a 14 percent stake in PSA, which could be an asset as a larger PSA-FCA tries to take a share in the world’s largest single car market.

    “Both FCA and PSA need an alliance,” Marco Bentivogli, head of the Italian trade union Fim-Cisl, said late on Tuesday when reports of the merger talks first began to circulate.

    Patrick Michel, head of the FO trade union at PSA, expressed skepticism but said the deal could give PSA “greater heft vis-a-vis giants such as Toyota or Volkswagen,” plus access to advanced technologies lacking at Fiat.

    PSA posted revenues of 74 billion euros ($82 billion) in 2018 compared to FCA’s 110 billion euros.

    Lees ook:

  • Groupe PSA Opens New Technical Centre In Chennai

    Groupe PSA Opens New Technical Centre In Chennai

    PCA Motors India, part of Groupe PSA today announced opening its new India Technical Centre (ITC) in Chennai, Tamil Nadu. The company says that the new technical centre will play a key role in the smoother and more efficient working of the employees of PSA India, in addition to boosting the capacity of the group to accelerate further in India. The new technical centre has come up in a specific building area, Chennai One, which is part of one of the Chennai Special Economic Zones (SEZ). Groupe PSA says the new facility has been designed and built in a frugal and efficient way, consistent with the spirit of scalability corresponding to the India project.

    Commenting on the launch, Emmanuel Delay, Executive Vice President & Head of India-Pacific, Groupe PSA, said, “The new India Technical Center [ITC] is an important step for the development of Groupe PSA in India, and is definitely an asset to grow the Group’s business in the India & Pacific region. This is part of our strategy to develop a global network of state-of-the-art technical centre, strategically positioned in India, to support a customer-oriented agenda. With the new centre, we’re focusing our investment in creating a cohesive work environment to accelerate our growth. This unified approach will improve the speed, efficiency and effectiveness of our employees while enabling us to address evolving consumer needs more quickly in the future. Our investment in ITC further emphasizes the importance of India to our global business.”

    Groupe PSA’s new technical centre will house departments of Research & Development, Programs and Projects, Global Purchasing Hub, Supply Chain, Process and Manufacturing Engineering, Quality, KD Excellence Centre and Product. In fact, going forward, the state-of-the-art centre will also house a workshop for styling, architecture and assembly of prototypes.

    Commenting on the launch, Eric Apode, Senior Vice President, PCA Motors India, said, “The new India Technical Centre is the next strategic step for Groupe PSA in India. It will allow the group to accelerate quickly its growth in India, through the development of new products and deployment of our strategy in and outside India. The area around our new centre is popular for housing dozens of international and Indian companies this gives the Groupe strong confidence of attracting Indian talent to the new ITC. The Monozukuri philosophy, the art of creating objects in an efficient and effective way is now taking shape with our new India Technical Centre, which will benefit group operations domestically and globally.”

  • Renault Fiat Case ‘Not Closed’

    Renault Fiat Case ‘Not Closed’

    Plans to merge carmakers Renault and Fiat Chrysler could re-emerge despite the breakdown of negotiations last week, France’s transport minister said on Tuesday, joining a chorus of French officials hoping the deal could be revived. Asked if talks between the two companies were over, Elisabeth Borne said: “I think it is not closed.”

    Borne’s comments follow similar remarks by French Finance Minister Bruno Le Maire, who also said he felt a merger between France’s Renault and Italian-American Fiat Chrysler Automobiles (FCA) remained a “good opportunity.”

    French budget minister Gerald Darmanin said last week as well that he hoped the door had not closed on a deal. Last week, FCA pulled out of $35 billion merger talks with Renault, with both companies blaming the French government.

    France has a 15% stake in Renault and the collapse of the talks deprived the companies of an opportunity to create the world’s third-biggest carmaker with 5 billion euros ($5.6 billion) in promised annual synergies.

    FCA and Renault are still looking for ways to resuscitate their merger plan and win the approval of Renault’s alliance partner Nissan, sources close to the companies have told Reuters.

  • Peugeot manufacturing plant debuts in Quảng Nam

    Peugeot manufacturing plant debuts in Quảng Nam

    The Trường Hải Automobile Corporation (Thaco) in co-operation with French car manufacturer Peugeot Group (PSA) officially inaugurated a new manufacturing plant and rolled out two made-in-Vietnam models – the Traveller Luxury and Traveller Premium – in the central province of Quảng Nam yesterday.

    The luxury European car brand’s plant, which cost VNĐ4.5 trillion (nearly US$200 million), was designed with a total capacity of 20,000 cars per year for domestic use and export.

    The general director of Thaco Phạm Văn Tài said the plant was thanks to the relationship that had been built between Thaco and Peugeot since 2013.

    “The newest Peugeot models follow the successful introduction of SUVs  Peugeot 3008 and 5008 in Việt Nam. The plant is equipped with modern production lines and updated automation technology to meet the luxury brand’s standards under the supervision of French technical experts,” he said.

    He also added that 4,500 Peugeot 3008 and 5008 were sold in Vietnam in 2018, leading the European luxury car brand segment in the domestic market.

    General director and CEO of PSA Laurence Noel said the introduction of the Peugeot Traveller marked an important step in the development of Peugeot and positive co-operation with Thaco.

    She said the debut of the two models was a result of the latest interest in the newest French car brand in Vietnam after the successful debut of the SUV models.

    She said the Peugeot Traveller had made an impressive start in the European and global markets after it was introduced at the Geneva Motor Show in 2016.

    Laurence also said the latest made-in-Vietnam MPVs conformed to the strict control standards of the PSA and network of PSA plants around the world.

    Thaco has been an exclusive agent for the French car giant’s return to the local market in 2014.

    The local manufacturer has already opened 13 Peugeot showrooms with 3S (sales-services-spare parts) facilities across the country.

    Thaco has produced and distributed vehicles for Kia from South Korea, Mazda from Japan, Peugeot and BMW.

    The local carmaker has invested VNĐ17.478 trillion (US$773 million) to build an agricultural and forestry industrial park, the expansion of the Thaco-Chu Lai Mechanical Automotive Industrial Park, the new wharf at Chu Lai-Trường Hải Port and residential quarters for workers in Quảng Nam Province’s Chu Lai Open Economic Zone (OEZ).

    It has also built 32 automobile manufacturing and support industry plants in the OEZ, creating 8,000 jobs and contributing $700 million to the provincial budget each year.

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

  • Ambassador To Return As PSA’s EV Brand For India

    Ambassador To Return As PSA’s EV Brand For India

    While the PSA Peugeot-Citroen group has officially announced that it will bring its Citroen brand to India, we finally have some news on its plans for Ambassador too. Two days before holding its first-ever official press conference in India to show us Citroen’s debut model for the country, we have learnt of a parallel plan afoot within the company. Speaking on specific conditions of anonymity, senior PSA board member and reclusive heiress Evié de Courant has shared with this reporter that the Ambassador brand will be used exclusively for electric vehicles to be sold in India only. The sub-brand will be the first new addition to the PSA family, after its last acquisition of erstwhile GM brands Opel and Vauxhall in August 2017.

    The Ambassador range of cars will likely only debut post 2022, and it is not as yet decided whether it would entail a standalone retail network. While Citroen will have a full-fledged dealer network, Ambassador branded cars are likely to be sold using an exclusive online sales strategy. Workshops for the two will be common though. The plan is to initially launch a compact SUV or crossover style car, and then a premium hatchback. Both are expected to share their platform and some components with similar sized ICE (internal combustion engine) models from the Citroen brand, to maximise economies of scale. The intent is to make Ambassador a profit-making entity from within the first quarter of the start of sales.

    PSA has also been in Formula E since 2015-16 and will bring a lot of its learnings to the EV plan. Citroen’s premium brand DS has also announced its range of EVs for Europe, which will use the E-Tense badge. The DS3 Crossback E-Tense is expected to be the first model and is expected to have a 330-kilometre range. Expect the Ambassador crossover to sport a similar electric powertrain.

    While the initial focus will be on India, the company believes the Ambassador brand will have a strong resonance with Indian diaspora across the world – especially in the Commonwealth states, which are also largely right-hand-drive. And so there is already a feasibility study on to examine the export potential of Ambassador badged products from 2023 onwards, according to Ms de Courant.

    It may be recalled that whilst entering into its two joint ventures (JVs) with Hindustan Motors (HM) in January 2017, PSA had also acquired rights to the Ambassador brand for ₹ 80 Crore a month later. At the time, HM had released a statement that read, “Ambassador has been an iconic brand and a surplus asset with us. We were looking for a suitable opportunity and found the right buyer in the PSA group. We intend to use the proceeds from the sale in clearing dues of employees, lenders and others.”

    It was at the start of 2017 that the two companies had also entered into two partnerships with an initial investment of ₹ 700 Crore for vehicle and engine manufacturing in Tamil Nadu. The first of the two JVs is between PSA and HMFC or Hindustan Motors Finance Corp for the assembly and distribution of new cars. HFMC currently also assembles Mitsubishi and Isuzu branded cars. The second is a JV for engine making with AVTEC – hived off years ago from HM that is a components and engines supplier to the auto industry. We trust the two will have a lot more success and will build on a strong foundation, unlike the veracity of this report. And on any other day we would have loved for this news to be true

    Lees ook:

  • Vietnamese car maker plans private share issue

    Vietnamese car maker plans private share issue

    Truong Hai Auto Corporation (THACO) is planning to issue more than 30.3 million shares to a strategic shareholder. The company is currently collecting shareholders’ opinions on a draft resolution to authorize a private placement worth an estimated total of VND3.89 trillion ($167.19 million) to Jardine Cycle & Carriage, a Singaporean diversified conglomerate that specializes in investment in car manufacturing.

    The share issue aims to raise additional capital to finance THACO’s investment and business plans this year, the company said in a circular issued to shareholders last week.

    The 30.3 million shares proposed in this placement make up 1.82 percent of THACO’s current chartered capital, and will raise the Singaporean shareholder’s stake in the car manufacturer to 26.57 percent.

    The share ownership of remaining shareholders will remain unchanged. Currently, 6.8 percent of THACO is owned by billionaire Tran Ba Duong, founder and chairman of the company, and another 60.6 percent by Tran Oanh JSC, a holding company owned by Duong and his family.

    The shares are expected to be issued soon after the State Securities Commission has confirmed the receipt of all documentation regarding the private placement.

    Dong Nai-based THACO was established as an auto and commercial vehicle maker in 1997. It has a plant in central province of Quang Nam and 89 showrooms and 53 dealerships.

    It makes trucks and buses and assembles cars for brands like Kia (South Korea), Mazda (Japan), and Peugeot (France).

    Jardine Cycle & Carriage Ltd, which is part of the Jardine Group of companies, has a diverse business portfolio. They have long term shareholdings in major manufacturers such as Jakarta based Astra International, as well as other interests in the refrigeration, cement and milk business.

    In Singapore, Jardine C&C is best known as the retailer of Mercedes Benz, Mitsubishi, Kia, Citroen, DS, and Maxus motor vehicles. The company has a current market capitalisation of S$14.55 billion (US$10.71 billion).

    Lees ook:

  • PSA signs Malaysia production deal to boost Asia reach

    PSA signs Malaysia production deal to boost Asia reach

    PSA Group has signed a deal with Malaysian company Naza to jointly produce PSA-branded cars for Malaysia and other Asian markets. It is part of the automaker’s plans to boost its presence in the region after a failed bid to form a partnership with with Proton Holdings.

    PSA said in a statement on Monday that it had signed a share sale agreement and a joint venture agreement to establish a shared manufacturing hub in Gurun, Kedah, in Malaysia. PSA will own a 56 percent stake in the manufacturing hub, but no deal value was disclosed at the press event in Kuala Lumpur.

    The Malaysian plant will have a 50,000-unit capacity. Output of the Peugeot 3008 will begin this year, with the Citroen C5 Aircross following in 2019, PSA said.

    Naza said that with the joint venture it aimed to export 20,000 cars from the plant in the next three years.

    “The Naza Group will have sole responsibility for the distribution of Peugeot, Citroen and DS Automobiles in the domestic market and, with PSA, will explore distribution prospects in other ASEAN markets,” the statement said.

    PSA said the deal formed part of the company’s Push to Pass strategic plan to boost sales. That plan envisages a 10 percent increase in sales by 2018 and a further 15 percent by 2021 versus 2015 for the French group.

    “The creation of the ASEAN (Association of South East Asian Nations) hub in Gurun, Kedah, is a significant leap forward for PSA that will lead to the development of a profitable business in the region as part of our Push to Pass strategic plan,” PSA CEO Carlos Tavares said.

    PSA’s entry into Malaysia echoes that of Chinese manufacturer Zhejiang Geely Holdings Group’s last year. Geely bought a 49.9 percent stake in Malaysia’s Proton, pledging to help the struggling national automaker to strengthen its presence domestically and in the region. PSA was also in the running to form a partnership with Proton.

  • Peugeot ups Chinese petrol engine shipments amid diesel slump

    Peugeot ups Chinese petrol engine shipments amid diesel slump

    French carmaker PSA Group is increasing shipments of Chinese-made gasoline engines to Europe as it adapts to a consumer shift away from diesel, Les Echos reported on Monday.

    The maker of Peugeot and Citroen cars now expects to source 100,000 gasoline engines from Chinese plants, an increase on the 55,000 it had previously planned to import in 2017-18, the French financial daily said.

    A PSA spokesman declined to comment.

    Paris-based PSA had announced the import plans earlier this year to accommodate the shift in demand while it converts some domestic engine production capacity from diesel to gasoline.

    Lees ook:

    Lees ook: