New European Car Giant on the Horizon??

[grober]

With the news that GM's Opel Vauxhall divisions are in discussions with the Peugeot/Citroen/DS [ PSA] to form a new conglomerate to rival the VAG group in size its possible this may have implications for a post brexit UK car industry. May not happen of course but if it does plant "rationalisation" in an overcrowded Europen market may be on the cards.

Peugeot in talks to buy GM's Vauxhall and Opel business - BBC News

 

[trapperjohn]

Let hope our over weak pound keeps our plants open.

 

[wemorgan]

If in VAG, Audi are the premium brand, VW the aspirational, Skoda the sensible and Seat the errr...... What's PSA/GM makeup going to be? They're all the same right now to me. They're going to have to spend big on marketing to change people's perception of the current line-up.

 

[whitenemesis]

Well, VAG certainly turned Skoda round. No longer the butt of many jokes. SEAT tend to be the 'younger' driver's car.

PSA is very French, very idiosyncratic style. GM is corporate/company car. Should have no difficulty living side by side...

 

[gr1nch]

If in VAG, Audi are the premium brand, VW the aspirational, Skoda the sensible and Seat the errr...... What's PSA/GM makeup going to be? They're all the same right now to me. They're going to have to spend big on marketing to change people's perception of the current line-up.

I agree with that. Can't see how the profits after merge will be greater than the combined profits from each now. Economically what's the point? And if they succeeded would the likes of Fiat and Renault feel compelled to merge?

 

[grober]

I am led to believe DS is destined to be PSA's premier brand ? That said go far enough back these big manufacturers can usually find a prestigeous name somewhere in their past. Darracq comes to mind??
https://en.wikipedia.org/wiki/Automobiles_Darracq_France

 

[190]

IF you go back far enough Peugeot was a quality brand of well engineered cars. Think of the 504's. The little 304's were solidly built too but you had to question their solution to the problem of how to drive the cooling fan on a transverse engine. They ran the engine driven fan belt through 90 degrees on idlers pulleys.

 

[grober]

IF you go back far enough Peugeot was a quality brand of well engineered cars. Think of the 504's. The little 304's were solidly built too but you had to question their solution to the problem of how to drive the cooling fan on a transverse engine. They ran the engine driven fan belt through 90 degrees on idlers pulleys.

I remember changing one - nightmare!

 

[MikeInWimbledon]

Fake news by Journos again. Other sources say that GM & PSA are looking to share distribution resources and NOT any kind of design / manufacturing merger.

The global car industry is more complex than simple nationalities - look at the Nissan Renault alliance which sells 1 in 10 cars worldwide.

It's not some simple Brexit response. These companies have already got their Brexit workarounds planned, subject to whatever formal deals are done by Governments.

But it would be good to see Citroen made in the UK again

 

[grober]

Fake news by Journos again. Other sources say that GM & PSA are looking to share distribution resources and NOT any kind of design / manufacturing merger.

If true that might put a different complexion on it. I would be grateful if you could share these "other sources" you quote with us . This was never a political response it was an economic one. That said who knows how the political landscape influences these major economic decisions. If GM are indeed hemorrhaging money through their European subsidiary and the current political climate in the United States is to consolidate jobs in the US who knows.

 

[grober]

Vauxhall deal: PM set to meet Peugeot boss - BBC News

 

[Dippo]

If it is 'fake news', then why are there so many government meetings at ministerial level with chairmen of the companies involved?

 

[whitenemesis]

Quite.

 

[Deleted member 6183]

Fake post then?

 

[markjay]

Well they are clearly talking about some level of cooperation - from sharing distribution channels or sharing R&D and manufacturing facilities to a full merger. Either way the concern is that increased profitability will come as usual from resource sharing and possible job losses.

 

[219]

I am led to believe DS is destined to be PSA's premier brand ? That said go far enough back these big manufacturers can usually find a prestigeous name somewhere in their past. Darracq comes to mind??
https://en.wikipedia.org/wiki/Automobiles_Darracq_France

PSA had ties with Volvo for many years , via which engines were shared ; Volvo is about to be floated on the stock market , so who knows who may buy in .

SAAB were also part of GM , but ended up part of Spyker then bankrupt .

Either could be developed into premium brands , but SAAB would fit with French quirkiness since they were always unconventional .

 

[grober]

Peugeot 'set to unveil deal to buy GM's Opel on Monday' - BBC News

 

[wemorgan]

I'd not want to be a Vauxhall employee right now.
The only positive for them is the expanding JLR empire.

 

[Charles Morgan]

Sadly I would agree there Will. Peugeot has form in closing UK plants (the very productive Ryton for example). With JLR opening the new plant in Slovakia I'm not sure about them needing more capacity at present either.

 

[rifiki]

Ford Europe next? All the car manufactures have pulled out of Australia.