PSA Peugeot Citroen doesn’t just have problems selling its cars lately. It also has problems selling its stock. To move the paper, a tried and true tactic is employed: Cash on the … where do you put the cash when you sell shares at a fire sale deep discount? (Read More…)
“Do you want to accompany? or go on ahead? or go off alone? … One must know what one wants and that one wants”
Friedrich Nietzsche, Twilight Of The Idols
This week’s news that GM would stop production of the Chevrolet Volt for the third time in its brief lifespan came roaring out of the proverbial blind spot. Having watched the Volt’s progress closely from gestation through each month’s sales results, it was no secret to me that the Volt was seriously underperforming to expectations. But in the current media environment, anything that happens three times is a trend, and the latest shutdown (and, even more ominously, the accompanying layoffs) was unmistakeable. Not since succumbing to government-organized bankruptcy and bailout has GM so publicly cried “uncle” to the forces of the market, and I genuinely expected The General to continue to signal optimism for the Volt’s long-term prospects. After all, sales in February were up dramatically, finally breaking the 1,000 unit per month barrier. With gasoline prices on the march, this latest shutdown was far from inevitable.
And yet, here we are. Now that GM is undeniably signaling that the Volt is a Corvette-style halo car, with similar production and sales levels, my long-standing skepticism about the Volt’s chances seems to be validated. But in the years since GM announced its intention to build the Volt, this singular car has become woven into the history and yes, the mythology of the bailout era. Now, at the apparent end of its mass-market ambitions, I am struck not with a sense of schadenfreude, but of bewilderment. If the five year voyage of Volt hype is over, we have a lot of baggage to unpack.
General Motors sold 1023 Chevrolet Volts in February of 2012, but production figures totaled 2,347 units. Uh oh.
We’re still waiting to get the final February sales numbers on all automakers, but one emerging story is that the Ford Focus has finally outsold its domestic rival, the Chevrolet Cruze.
Throughout 2011 and January 2012, the Cruze led the Focus, with the Chevy beating the Ford last year by a substantial margin (231, 860 units for the Cruze versus 175,709 for the Focus). Last month the Cruze did 15,049 units versus 14,440 for the Focus. This month, independent analyst Timothy Cain is reporting that the Focus finally bested the Cruze. Chevrolet moved 20,427 Cruzes versus 23,350 for the Blue Oval’s small car.
Ford is touting a 115 percent year-over-year gain for the Focus, having sold 10,879 Foci in February 2011, but their fleet percentage back then, according to TrueCar, was just 1.6 percent.. One year later, it’s closer to 20 percent. February wasn’t even over when Ford started sending out press releases claiming that Focus sales are on pace to double this month compared to February of 2011. With reports of Ford Focus fleet sales hovering around 45 percent, we thought that it would be worthwhile to look at the fleet/retail breakdown for the Focus and Cruze in 2011, as a means of providing a bit of context . (Read More…)
GM and PSA praised monstrous synergies and annual cost savings of $2 billion a year as an effect of the alliance that was announced yesterday. The savings won’t come immediately, rather in about 5 years from now. Moody’s thinks it’s a bad deal, and did cut PSA’s debt rating to junk status. (Read More…)
When the stock markets close in Europe today, PSA Peugeot Citroen and GM should announce that they are going ahead with the plan of GM buying seven percent of PSA. That according to “sources with knowledge of the discussions” that talked to Reuters. (Read More…)
As a member of The Tribe with an Iranian best friend, the general policy on politics pertaining to the Middle East is “don’t talk about it” (although like most young Iranians, my friend’s take on Ahamadinejad would make Rick Santorum look like a capitulating Ayatollah-sympathizer). The same policy seems to have come up in the last week or two, as talks of a General Motors/PSA tie-up have surfaced. Peugeot has an Iranian best friend, and it may have some interesting implications if the deal goes through.
Hear that chafing sound? It is analysts scratching their heads. They wonder why in the world would GM buy 7 percent of France’s PSA Peugeot Citroen. Bloomberg says this is about to happen. Neither GM nor PSA wants to confirm the deal. However, Bloomberg already has intricate details of the planned transaction, someone seems to be talking on deep dark background. Sounds like the odd couple is about to do it.
The question remains: Why? (Read More…)
Even after Canadian taxpayers contributed $3.2 billion (Canadian) to General Motors’ pension fund after GM’s bankruptcy proceedings in 2009, the company’s pension fund for unionized employees is still short $2.2 billion – a fair amount for a plan that’s responsible for 30,000 employees.
GM and PSA Peugeot Citroen have a mutual problem: Losses in Europe. Now, the two want to share the burden. General Motors and PSA are discussing a broad manufacturing alliance, if today’s media reports from Europe are to be believed.
PSA and GM? (Read More…)
Opel Chief Karl-Friedrich Stracke told reporters that an agreement with unions about a fix of money-losing Opel is a while away. “I expect this not to happen in a month or so, rather than in a couple of months, that’s at least how I see the timetable,” Stracke told Reuters.
Analysts think that Stracke is an optimist, and that restructuring Opel won’t come cheap. The guesstimate is more than $1 billion, and the payback will take a while. (Read More…)
Days after Republican Presidential candidate Mitt Romney penned an op-ed in the Detroit News over his thoughts on the bailout, UAW President Bob King is firing back.
GM’s track record has been less than stellar. First we had the Saturn Vue Green Line, a very “mild” hybrid that paled next to competitors like the Ford Escape. Next came the extraordinarily expensive 2-mode hybrid system used in GM’s pickup trucks and full-sized SUVs, which cost far too much and delivered far too little. Finally, we have the Volt – ’nuff said. No wonder GM’s latest hybrid endeavor has come to market with little fanfare, no “hybrid” logos on the vehicle and no hybrid branding from GM. Can we honestly call the 2012 Buick LaCrosse eAssist a hybrid?
Analysts had already expected a disappointing 4th quarter, but when GM announced the results of the October – December quarter today, the results were worse than feared. Net income attributable to common shareholders was $500 million, or 28 cents a share. Analysts had expected two cents more.
Strong results in North America were dragged down by losses in Europe. Said GM CFO Dan Amman: (Read More…)
When GM will announce 4th quarter and year-end earnings tomorrow, a lot of fingers will be pointed at Opel, and on GM CEO Dan Akerson who decided to keep the hemorrhaging unit instead of selling it off to Magna and the Russians. Bloomberg expects that tomorrow’s quarterly profit will be “GM’s lowest since it emerged from bankruptcy in 2009,” despite record sales in the U.S. and China. According to Bloomberg, (Read More…)
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