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Ford, Renault, VW shareholder oppose French aid for PSA/Peugeot-Citro"en

Pots and kettles, glass houses and stones - that's a little of what we appear to have going on in the European car market. New reports say that that three European automakers have registered their opposition to a loan deal that PSA/Peugeot-Citroën is working on with the French government. Peugeot's finance arm, Banque PSA Finance, is struggling with its debts and has been downgraded by Moody's to its lowest investment-grade classification, one step above junk. This makes it more expensive for a potential buyer to finance a car through Peugeot. The last thing Peugeot needs is more difficulty selling cars in the tough European market, and the situation will only worsen if the bank's credit worthiness takes another hit.
A deal being worked on would have the French government offer €7 billion ($9B U.S.) in bonds to guarantee the bank's loans, which would give the institution some breathing room to manage its debts and lower its interest rates. Outside of that, a group of banks would provide other, non-guaranteed loans to the bank to further help its position. In exchange for state help, though, the government wants seats on Peugeot's board for worker representatives and a government liaison, along with factory and worker guarantees. The Peugeot family would maintain control of the company.
So what we have is government assistance being provided to a car company's finance arm, akin to the way General Motors' GMAC (now Ally Financial) and Chrysler Financial got help in their time of need. What we also have is Ford and Renault, and Germany's State of Lower Saxony, the second-largest shareholder in Volkswagen, voicing their concern about the proposal, because they say it could create an unfair competitive advantage for Peugeot. Everyone in Europe's down market is fighting for every sale, and if Peugeot gets help to keep its auto loan costs down, it figures to help buyers choose Peugeot or Citroën.

Citro"en reveals DS 5LS luxury sedan for the Chinese market

Typically seen as more of a budget brand, Citroën set out to move upmarket with the re-launch of its DS line and the debut of the DS3 in 2010. But in the years since, it has only produced hatchbacks, and as anyone could tell you, a luxury marque wouldn't be a luxury marque without a luxury sedan. And that's what the French automaker has set out to create with this latest model to join the family.
Designed specifically for the Chinese market - where buyers still demand sedans like we do here - the DS 5LS is based on (and will be built alongside) the existing DS5 hatch. Its design is derived closely from the Numero 9 and Wild Rubis concepts, but with a trunk and applied to a footprint only slightly larger than the latest Mercedes-Benz C-Class. Positioned in the smaller C segment, however, the DS 5LS claims the longest wheelbase in its class. That gives it a rather commodious interior, swathed in leather, wood and metal, with features like massaging front seats and reclining rear seats.
Power comes in the form of a twin-scroll turbocharged, direct-injection four-cylinder engine displacing either 1.6 or 2.0 liters, mated to a six-speed automatic. Buyers will be able to choose between nine exterior colors when they order theirs through one of 50 dedicated DS dealerships across China. With its launch at the Carrousel du Louvre in Paris, Citroën also announced that it will be launching an SUV in the Chinese market as well sometime next year.

Stellantis and Toyota expand partnership with large commercial van

Stellantis said on Monday it would expand its partnership with Toyota Motor Europe (TME) with a new large commercial van, including an electric version. Stellantis will supply TME, a unit of Japan's Toyota Motor Corp, with the new vehicle for sale in Europe under the Toyota brand, it said. The van will be produced at Stellantis plants in Gliwice, Poland, and Atessa, Italy. "Planned for mid-2024, the new large-size commercial van marks TME's first entry into the large-size commercial vehicle segment," Stellantis added in a statement. The deal widens the partnership between the two companies and allows a better optimization of Stellantis' Atessa plant, which currently makes large vans sold under the Peugeot, Citroen and Fiat marques. "It represents an important addition and completes our light commercial line-up for Toyota's European customers," Stellantis said. Paris-listed shares in Stellantis were up 1.6% by 0941 GMT. Carmakers have increasingly been agreeing cross-manufacturing deals to reduce costs in vans, which due to a boom in parcel delivery are seeing large demand — and where electric vehicle versions are also seeing rising sales to carry out "last-mile" deliveries in city centers. Green Fiat Toyota Citroen Peugeot Minivan/Van Commercial Vehicles Electric