Archive for the ‘Opel’ Category

Peugeot Will Be the Brand of Choice for PSA’s Reborn U.S. Dealer Network

“This is not about speed,” says North American CEO. Re-launch could take until 2026.

by on Feb.26, 2019

PSA's North American CEO Larry Dominque said the company will be very deliberate in its return the U.S.

The Peugeot brand is making its return to the U.S. and Canadian markets, parent Groupe PSA announced Tuesday, but the relaunch of its dealer network could take until 2026 to put in place.

The news comes 28 years after Peugeot pulled out of the U.S., a victim of rapidly declining sales. Rebuilding a market could prove challenging for the Paris-based carmaker, industry analysts warn, pointing to the troubles Fiat has faced since returning to the States after a two-decade absence.

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“The good news for us is PSA is not dependent on me to sell a single car,” Groupe PSA North America CEO Larry Dominique said in an interview on Tuesday. “The idea is to build the brand the right way.” (more…)

Pickups, SUVs Push GM Profit Well Above Expectations

Automaker betting numbers will look even better as truck production ramps up in 2019.

by on Feb.06, 2019

GM reported stronger than expected earnings as Chairman and CEO Mary Barra continues to reshape the company.

General Motors handily beat Wall Street’s earnings forecast for the fourth quarter and full year a strong performance that reflects both booming truck demand and the payoff of shedding the company’s long-struggling European operations.

For the final quarter of 2018, GM delivered earnings of $1.43 a share — $1.40 after excluding special items. The consensus, according to Zacks Investment Research, was $1.24. For the full year, earnings came to $6.54 a share, well ahead of the consensus forecast of $6.29. After special charges, the figure dropped to $5.58 per share.

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GM’s overall $8.1 billion profit for all of 2018 was more than double the $3.9 billion number from the year before, but the 2017 figure reflected a significant hit from the sell-off of the company’s long-troubled European Opel-Vauxhall subsidiary. It was acquired by PSA Group, parent of the Peugeot and Citroen brands. (more…)

GM Is Going to Build eBikes – and Wants the Public to Come Up With a Name

Winner will get $10,000.

by on Nov.02, 2018

One of General Motors' two electric bikes is a distinctively styled compact version.

The word, “mobility” is showing up in transportation circles a lot these days, and expectations are that the public will have plenty of alternative ways to get around in the years ahead, everything from electric scooters to ride-sharing services.

That’s led General Motors to invest billions in a variety of different transportation alternatives, including car-sharing service Maven and it autonomous Cruise Automation subsidiary. Now, the Detroit automaker says, it will be getting into the bicycle business. Make that electric bikes, two of which it unveiled on Friday.

The Last Word!

It wants to start selling them next year but it has a rather significant problem: no name. So, it is asking the public to come up with a moniker for the new brand and will give the participant who submits the winning choice $10,000, with nine runners-up getting $1,000 each.

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Ford Denies Plans to Slash European Car Line-Up

Mondeo to get upgrades, no plans to eliminate other car models.

by on Sep.04, 2018

Ford says it will update, rather than eliminate its European midsize sedan, the Mondeo.

Ford Motor Co. is denying a report by the British newspaper, The Times, that it plans to radically cut back its European line-up and shift focus to more profitable SUVs – echoing steps it plans to take in the U.S. market.

The Times reports that Ford would eliminate production of the Mondeo – the global name for what, in the U.S., is known as the Fusion – as well as its Galaxy and S-Max people-movers. The paper said Ford also wants to reduce the number of dealerships its products are sold through in Europe.

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A cutback in passenger car models abroad would follow plans for the U.S. outlined by Ford CEO Jim Hackett earlier this year. Reflecting a dramatic market shift from sedans and coupes to SUVs, CUVs and pickups, Ford will eliminate virtually all of the passenger car models sold in the States, with the exception of the Mustang “pony car.”

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PSA Makes Opel Profitable a Year After Buying It From GM

Company makes $588 million in first half of 2018.

by on Jul.24, 2018

PSA CEO Carlos Tavares has been credited with turning around the near-bankrupt French company, and now making a profit at Opel in just one year.

In just about a year, PSA Group managed to do something General Motors Co. hadn’t done 20 years: squeeze a profit out of Opel. PSA bought the company as well as its British sibling Vauxhall from GM for $1.3 billion euros last year.

The German brand reported a profit of $588 million, or 502 million euros, through the first six months of this year compared with a loss last year.

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The profits excluded $492 million, or 406 million euros, in one-time charges, after the company reached an agreement in May with German labor representatives to eliminate 3,700 jobs from Opel’s German workforce of about 20,000 employees. (more…)

Trump Tariffs Could Complicate PSA’s U.S. Market Return

“I could launch in Canada,” says PSA’s North American CEO.

by on Jul.17, 2018

While new Peugeot models, such as this 3008 crossover, would work for North America, PSA will develop unique U.S. products.

On Thursday, the U.S. Commerce Dept. will hold hearings in Washington, D.C. to decide if, as President Donald Trump has suggested, imported automobiles pose a threat to national security. If so, the White House could follow up with new tariffs of up to 25% on those vehicles.

That’s on top of the previously enacted tariffs on steel and aluminum that have already begun to drive up production costs for domestic manufacturers. And the industry’s response has been fierce in its opposition to the Trump administration’s proposal.

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But as much as the potential tariff hike has complicated matters for existing manufacturers, it is raising even more challenges for potential new entrants to the U.S. market, including PSA, the French parent of the Peugeot, Citroen, Opel and Vauxhall brands, which is in the midst of developing a strategy to return to North America for the first time in more than a quarter century. (more…)

Accounting Adjustment Masks Record Full Year Earnings for General Motors

Workers will get $11,750 in profit-sharing.

by on Feb.06, 2018

GM CEO Mary Barra has pushed for major changes in GM's strategy, and the 2017 numbers suggest her approach is paying off.

General Motors officially reported a net loss for 2017, but the real numbers were masked by a series of accounting adjustments and actually climbed into record territory for the year.

The adjusted, $12.8 billion in pretax profits, which worked out to $6.62 a share – an 8.2% year-over-year gain – comes as good news to workers as well as investors at a time when economic uncertainty has shocked Wall Street. About 50,000 U.S. hourly employees will share the maker’s success with profit-sharing checks averaging $11,750 apiece. That bonus actually dipped from $12,000 last year.

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“The actions we took to further strengthen our core business and advance our vision for personal mobility made 2017 a transformative year,” said GM Chairman and CEO Mary Barra, in comments during a media and analyst conference call. “We will continue executing our plan and reshaping our company to position it for long-term success.”

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PSA Lays Out 3-Stage, 10-Year Roadmap for U.S. Return

CEO calls for “100% electrified” line-up by 2025.

by on Jan.19, 2018

PSA CEO Carlos Tavares has been credited with turning around the near-bankrupt French company.

After a 26-year absence from the North American market, French automaker PSA Group is formalizing plans to reenter the market, though in a series of interviews and appearances in Detroit this week, CEO Carlos Tavares made it clear he’s not in a rush.

With the once nearly bankrupt automaker now flying high in most of its other markets, Tavares outlined a three-stage process that will take as much as a decade to complete. In the meantime, he is focusing on several other critical endeavors, including the revival of the Opel/Vauxhall operations PSA purchased from General Motors last year, as well as a plan that call for the company to have 100% of its products electrified by 2025.

Industry News!

“When we go into a country we try to be really cautious,” Tavares said during a Thursday roundtable with a small group of journalists, one of several meetings he held in connection with the annual North American International Auto Show. The plan for North America is “more frugal, more humble” and will require only “a small investment,” he explained.

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