PSA, an existential outlook. UG or not UG

psa

Will PSA be here as a company in 5 years.  Sure it will, as a brand, company and equity.  But in what way shape or form seems to shift each day.  Six months ago the market was pretty hedged on that question, a couple of weeks ago they seemed to have a plan.  After Philippe Varin’s comments this week on “alliances” fear is creeping back.  So, is there an existential threat to PSA at least as an invest-able vehicle?

Worries over the partnership with GM dying out are overblown.  The real cost savings PSA-RADD2012-EN_01_img_58have always been closer to 2017-2018.  At the same time, Opel and PSA do have a number of areas where they can cooperate. Mr. Varin made it clear that while the B platform is “under review” the B- and C-MPV projects are Continue reading

Advertisements

CNH+Fiat Industrial: 1+1= 2 at best

Finally, Sergio Marchionne has pulled the trigger on fully merging CNH and Fiat Industrial, and pretty much in line with expectations. The proposal made to the BOD at CNH (which Marchionne is Chairman of) from FI (which Marchionne is chairman of) is for a merger of the two companies at “undisturbed” pricing” answer the only real question for investors: Is there any downside for CNH shareholders?  It turns out not really.

The inverse question was more important: Is there any upside?  Not really here either, and that may be a disappointment for some investors who speculated Continue reading

Come on VW and Suzuki, make nice! no value creation here

What in the heck are VW and Suzuki doing?  Have they been taking management seminars from Greek and US politicians?  Nothing comes of public bickering in what is a DOOMED relationship.  A lot of press reports seem to put VW in the driver’s seat, not surprising since they’ve been on a roll with success lately.

I see it a bit differently, I remember first meeting Osamu Suzuki Continue reading

Where’s the real info?

I was re-reading the below post on GM truck inventory and some great Edmunds.com data and I thought I’d share some history.  20 years ago when I first started working with the auto sector, we had the good ole’ 10-day sales report.  Yep, sales every 10 days, data crunchers’ dream.  After a few years on the inside, I quickly learned that retail sales numbers are totally Continue reading

Changes? at the top? @Renault.

Tomorrow, Renault will announce a “new” management structure featuring a new and improved CEO position. According to reports in the French Press, Carlos Ghosn will take more control of corporate functions including legal, HR, public affairs and real estate.  I really don’t get the real estate function oh well —  as for the others functions, he was already ostensibly in control prior to the recent spy scandal that cost the prior COO his position but the French government has insisted on something concrete to tout.  Two names have surfaced so far regarding changes within Ghosn’s inner circle, Continue reading