1973 Citroen Sm on 2040-cars

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Fiat/PSA's dominance in small vans hangs up EU's merger approval

BRUSSELS — EU antitrust regulators are concerned about Fiat Chrysler and Peugeot / PSA's combined high market share in small vans and may require concessions to clear their $50 billion merger, people familiar with the matter said. The companies, which are seeking to create the world's fourth biggest carmaker, were told of the European Commission's concerns last week. If Fiat and PSA fail to dispel the European Commission's doubts in the next two days and subsequently decline to offer concessions by Wednesday, the deadline for doing so, the deal would face a four-month-long investigation. The EU competition enforcer, which has set a June 17 deadline for its preliminary review, declined to comment. Fiat was not immediately available for comment while PSA had no immediate comment. Hiving off overlapping businesses, usually a regulatory demand to ensure more competition, could prove tricky for the carmakers because of the technicalities. Fiat and PSA are looking to merge to help offset slowing demand and shoulder the cost of making cleaner vehicles to meet tougher emissions regulations. The deal puts under one roof the Italian carmaker's brands such as Fiat, Jeep, Dodge, Ram, Maserati and the French company's Peugeot, Opel and DS. Related Video: Government/Legal Chrysler Dodge Fiat Jeep Maserati RAM Citroen Opel Peugeot

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.

Here's your chance to bid on a rare Chapron-bodied 1969 Citroen DS

Citroen's palatial DS has become a sought-after classic, but auction house Bonhams is preparing to sell one that makes the regular sedan look a little mundane. Up for grabs with no reserve is a rare 1969 DS 21 that was rebodied into a stately limousine by coachbuilder Chapron. Assigned chassis number 4637101, the DS 21 scheduled to cross the auction block is one of 27 Majesty models built by Paris-based Chapron and one of three equipped with directional headlights, which were a real novelty in the late 1960s. While the DS was positioned as Citroen's range-topping sedan from 1955 to 1975, the coachbuilder took luxury to the next level by giving the Majesty a more upright C-pillar that cleared up additional space for the passengers riding in the back, a more angular-looking rear end, and a more upmarket interior. Majesty models also featured specific trim inside and out (the chrome strips on the fenders and on the front doors were notably not fitted to the regular-production DS) and a handful of subtle Chapron emblems. Pricing varied from car to car, but the Majesty wasn't cheap. It was created largely for heads of state and other money-no-object dignitaries, it was built almost entirely by hand, and it was priced accordingly. Finished in Midnight Blue, the example offered by Bonhams was fully restored in the 2000s. But it has been stored since the current owner purchased it at Retromobile in 2009, so it needs a full tune-up — at the very least. Like every DS built, the Majesty was fitted with a hydropneumatic suspension system that (we say this from experience) doesn't like to sit for an extended period of time. Parts are readily available, and the system isn't nearly as daunting to work on as it sounds, so getting it back on the road should be easier than it sounds. Bonhams is offering this Majesty with no reserve, meaning the highest bidder will take it home. It expects the sedan to sell for anywhere between 50,000 and 100,000 Swiss francs, excluding auction-related fees, figures that represent about $50,200 and $100,300, respectively. If this looks like the project that you've been waiting for, mark your calendar for July 3 — that's when this car will cross the block in Gstaad, Switzerland. Collectors who would rather enjoy a bidding war from the comfort of their couch can register to bid online.