Strategic developments at PSA
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  1. #1
    1000+ Posts gerry freed's Avatar
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    Default Strategic developments at PSA

    PSA believe that the european market will drop another 3 to 5 % in 2013 following 8.6% in 2012.
    It will be even more difficult for them this year.
    In 2012 they sold just under 3 million vehicles including components. This was 16.5% down on 2011, largely blamed on the ban on exports of components to Iran, caught up in sanctions.
    They say it is more than ever necessary to follow their globalisation strategy with increased activity in China Latin America and Russia.
    In 2012 they got 38% of sales outside Europe, and now have the objective of pushing that up to 50% by 2015.
    To get there, Peugeot and CitroŽn have launched 17 new commercial activities across the world of which 9 are in Europe.
    PSA equally depend on accentuating their move up market with the launch of cars like the DS3 Cabrio, the Peugeot 208 GTI, 208, several Hybrids and 2008 in forthcoming months.
    The group has never before launched so many new cars in one year.
    Having made this statement, the share price improved a little.
    Details in
    http://www.psa-peugeot-citroen.com/f...linternational

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    but i haven't seen any mention of the Australian market.
    Last edited by gerry freed; 10th January 2013 at 02:04 AM.
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  2. #2
    Should get a life 2353's Avatar
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    Interesting developments Gerry, I wonder if PSA (and to a lesser extent Renault) are now suffering due to past errors of judgement in assessment of globalisation versus nationalism?
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  3. #3
    Real cars have hydraulics DoubleChevron's Avatar
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    Maybe it'll help if the make something people will actually want to buy. Nice simple soft hydraulics, proper high pressure brakes, daravi steering all wrapped up in a nice C6 (ie: sensible) sized car. With a tow rating of about 2.5tons. Chuck a V6 turbo diesel in it, and a 6spd manual (or auto).

    You know, basically a modern DS23 ....

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  4. #4
    1000+ Posts gerry freed's Avatar
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    Quote Originally Posted by 2353 View Post
    Interesting developments Gerry, I wonder if PSA (and to a lesser extent Renault) are now suffering due to past errors of judgement in assessment of globalisation versus nationalism?
    Exactly so.
    Playing politics as politicians do, the government having failed to stop the closure of Aulnay, used an outside consultant to report that PSA had no choice and that it arose from poor strategic judgement. The irony of this is that it implied that the correct decision was to have globalised much earlier. That would have even more rapidly led to a downturn in PSA's investment in France as like Renault they would be expanding production in the countries that wished to penetrate.
    The comment was made at the time that Peugeot's error was to be too patriotic.

    In my view the problem is not confined to the Peugeot family, it is endemic in France. The French are locked into a mind-set that precludes rapid change and they cannot alter their behaviour fast enough to compete effectively. There is much talk of the need for change, changes are being discussed but the time frame is too long relative to competition.

    It is very much to Carlos Ghosn's credit that he took Renault trans-national and is very carefully keeping the political noise at bay in France, preventing it from impeding their global competitiveness.

    The frustrating part of all this is that PSA is making better built cars than ever before and is developing some market segments in which it has sustainable advantage. Sustainable in today's context means one development cycle.
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  5. #5
    1000+ Posts gerry freed's Avatar
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    Quote Originally Posted by DoubleChevron View Post
    Maybe it'll help if the make something people will actually want to buy. Nice simple soft hydraulics, proper high pressure brakes, daravi steering all wrapped up in a nice C6 (ie: sensible) sized car. With a tow rating of about 2.5tons. Chuck a V6 turbo diesel in it, and a 6spd manual (or auto).

    You know, basically a modern DS23 ....

    seeya,
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    Maybe they should hire you as Marketing Director and charge you with the responsibility of selling 3 million CX next year.
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  6. #6
    Should get a life 2353's Avatar
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    Quote Originally Posted by gerry freed View Post
    Exactly so.
    Playing politics as politicians do, the government having failed to stop the closure of Aulnay, used an outside consultant to report that PSA had no choice and that it arose from poor strategic judgement. The irony of this is that it implied that the correct decision was to have globalised much earlier. That would have even more rapidly led to a downturn in PSA's investment in France as like Renault they would be expanding production in the countries that wished to penetrate.
    The comment was made at the time that Peugeot's error was to be too patriotic.
    Yes, it's sort of like the Canadian bi-lingual thing where even though the French lost the battle for control of Quebec in the 1700's the entire country has to be bi-lingual. In most other areas of Canada that I have visited most Government type signage is equal - in Montreal at least the English (if there at all) is in 10 point type on the bottom of the sign where it is easily missed. Without any intent of disrespect, the French do hold a grudge don't they?

    Quote Originally Posted by gerry freed View Post
    It is very much to Carlos Ghosn's credit that he took Renault trans-national and is very carefully keeping the political noise at bay in France, preventing it from impeding their global competitiveness.

    The frustrating part of all this is that PSA is making better built cars than ever before and is developing some market segments in which it has sustainable advantage. Sustainable in today's context means one development cycle.
    Ghosens is a very clever man. He has blended French flair and Japanese efficiency well. The two brands do co-exist. Someone was discussing Nissan Dualis on anther forum I was looking at today and the comment was made once the Renault Diesel is added as an option . . . The interesting thing is that the Renault Diesel being added was seen as an advantage.

    Your right about PSA products, the complaints in the Australian road tests on the 508 and 208 are pretty minor.
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    unfortunately, everyone else is making better cars than ever too.
    on the plus side, if domestic sales continue to fall, it will make it easier to achieve the 'target' of 50% foreign sales.

  8. #8
    1000+ Posts gerry freed's Avatar
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    Quote Originally Posted by alexander View Post
    unfortunately, everyone else is making better cars than ever too.
    on the plus side, if domestic sales continue to fall, it will make it easier to achieve the 'target' of 50% foreign sales.
    Yes, I agree with both observations. There are issues of catch-up with quality but essentially the challenge that they are addressing with 17 new models promised this year, is to get into some market positionings where they have an edge. This will give extra margin per vehicle to compensate for the loss in volume. It is now a hyper cyclic industry. With such high fixed costs to create new models relatively small changes in volume of sales can create wild swings in profit or loss.

    The share price slipped back again today as they announced extra banking facilities. If this debt is deployed, then the debt/equity ratio of the company leaves little value for the shareholders unless they can get some serious improvement in market grip and hence bottom line. Looked at another way, if they where to be taken over today, then the price would not probably cover the debt.
    All the input I get, suggests that the management is working its butt off to build the value back into the company.
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