1973 Citroen Sm on 2040-cars

Auto blog

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.

Recharge Wrap-up: BorgWarner buys Remy, Citroen's Bluesummer

BorgWarner will buy Remy International. The auto parts maker, known especially for its turbocharging technology, will buy Remy, a maker of electric motors for EVs and hybrids, in order to better compete in a growing electrified vehicle market. In a deal expected to close late this year, BorgWarner has offered to buy 32.2 million shares of Remy at $29.50 each for a total of about $950 million. Remy did about $1.2 billion in sales in 2014. Read more from Reuters. Deliveries of the Tesla Model S P85D will begin soon in Hong Kong. Some customers there have received emails from Tesla saying, "Your Model S is ready to enter production," and asking for registration information. Hong Kong is likely to be one of the first locations to receive the right-hand-drive version of the P85D. The first deliveries are expected in late August. Read more at Inside EVs. Tesla Motors has hired Ganesh Srivats as its vice president for sales in North America. Srivats is the former senior vice president at British luxury fashion brand Burberry. The hire will help Tesla build its luxury lifestyle image as the company enters more markets around the globe. "If Tesla is thinking that they are selling a lifestyle and a way of thinking, then someone from Burberry could be the right choice," says Ken Harris of Cadent Consulting Group. "Burberry gets lifestyle." Earlier this year, Tesla reassigned its vice president of worldwide sales and service Jerome Guillen, and created separate sales positions for North America, Europe and Asia. Read more from Bloomberg. Citroen will distribute Bollore's four-seat, electric convertible, the Bluesummer. Bollore Group and PSA Peugeot Citroen recently announced that the funky EV would be built at PSA's plant in Rennes, France beginning in September. While it originally appeared that the Bluesummer would be available through carsharing programs, Citroen now says it will sell the Bluesummer through its dealership network. "This partnership with the Bollore Group is an opportunity for the Citroen network to increase its sales by attracting to its showrooms new customers who like the originality and freshness of the Bluesummer and thus promoting all the vehicles in the range," says Philippe Narbeburu, sales director for Citroen France. Read more in the press release below.

FCA CEO Mike Manley will take undefined new role after PSA merger

MILAN — Fiat Chrysler Chief Executive Mike Manley will remain with the new group set to result from a planned merger with French rival PSA-Peugeot, Chairman John Elkann said on Wednesday. In a letter to Fiat Chrysler (FCA) employees on the day the two companies announced a binding agreement for a $50 billion tie-up to create the world's fourth-largest carmaker, Elkann said he was "delighted" that the combined group would be led by current PSA CEO Carlos Tavares. "And Mike Manley, who has led FCA with huge energy, commitment and success over the past year, will be there alongside him," he said. He did not say what position Manley would hold. Elkann — who will chair the new group — said there was still much to be done to complete the merger. "Over the coming months we must work tirelessly and determinedly to fulfill all the approval requirements needed to finalize the commitment we have signed," he said. Related Video:     Hirings/Firings/Layoffs Chrysler Dodge Fiat Jeep RAM Citroen Peugeot FCA PSA merger Mike Manley carlos tavares