PSA raises some cash
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  1. #1
    1000+ Posts gerry freed's Avatar
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    Default PSA raises some cash

    PSA Peugeot CitroŽn has sold 75% of its logistics company Gefco to the Russian railways (RZD) for 900 million euros. As PSA is said to be bleeding cash at 200 million per month this provides a bit of a breathing space. They are talking of doubling the turnover of Gefco in 5 years and that gets off to a good start with a deal with GM that adds 20% to its turnover.
    RZD is owned by the Russian State and managed by someone close to Putin.

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  2. #2
    1000+ Posts gerry freed's Avatar
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    One of the rating agencies has downgraded PSA long term paper to BB-. The reasons that they give include the poor prognosis for the European manufacturers who in general have financial and political difficulties in reducing their over production capacity. Specifically, they have concerns over PSA's positioning as mass market producer whose main manufacturing is in an over priced labour market and whose sales depend on Europe whose consumer buying power is shrinking.
    PSA is engaged in a messy debate with a weak government and unions (who feel cheated by both management and government) over the closures needed.
    PSA management is preoccupied with a revised business strategy which will be divulged to the financial markets in mid October. I suspect that they will not announce a decision about Australian distribution until the overall plan is solidified.
    Meanwhile, they have never made such good cars.
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