An unhappy day for PSA
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  1. #1
    1000+ Posts gerry freed's Avatar
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    Default An unhappy day for PSA

    Moody's today further downgraded PSA debt and the shares dropped 1.59% on today's trading.
    http://www.finanzen.net/nachricht/an...utlook-2086937
    gives the reasoning behind the downgrade and the the concerns that the European car market is still receding and may not allow PSA to achieve its cash outflow reduction as hoped.

    Fiat with 9 billion of debt is similarly downgraded because so much of its business is in Italy, an economy in serious need of readjustment.
    VW, Europe's largest car manufacturer is pulling away from the peloton.

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  2. #2
    1000+ Posts gerry freed's Avatar
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    It is impossible to share with you the activities of the French automotive assemblers without bringing politics in, as it is an important driver for both the companies concerned and the government.
    Montebourg, the Minister for industrial reconstruction said in Libération today that his terms for giving a government guarantee for the billions or new debt needed to keep Peugeot SA alive is a government representative on the controlling board, worker representation in the strategic planning and a reduction in the 8000 to be retrenched in France.

    Such is the nature of French society today that these negotiations at Ministerial level are by newspaper.
    The shares jumped nearly 2% at 11.00 linked to this statement, after they had fallen below 6 euros.
    Last edited by gerry freed; 23rd October 2012 at 11:09 PM. Reason: typo
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  3. #3
    Veni Vidi Posti 68 404's Avatar
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    Gerry,

    There are some here (especially in the 'pond) that have a similar effect upon me as valium.

    I am thankful that your posts do not have the same effect. Thank you so much for your insightful reporting, opinion, and crystal ball gazing. I like our man on the ground. Keep 'em coming please.

    Dave
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  4. #4
    1000+ Posts gerry freed's Avatar
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    Thanks for the vote of support! There is an information flow challenge. Some of the French action is translated for the English language press by AP, Reuters and others. It is selectively used by the press in the UK and the US, with the selection criteria often based on stereotype reinforcement, sensationalism and the pursuit of competitive international strategies. A smaller sub set is taken from the English language press in the Northern Hemisphere and the global news wholesalers and then appears in the Australian press. A lot of it is unhelpful because it is information not always accurate and often out of context. In the automobile scene in the US and Australasia there is a further overlay of selectivity because the French car marques are seen as exotic (indeed quirky) whereas in France and Europe generally, they are the mainstream.
    What I am doing, inevitably selectively, is to immediately translate the news and scuttlebutt so keeping the French car afficionados on the forum up to date. I can avoid religion, skirt around the sex-appeal but within France car production is an intensely political subject.
    Last edited by gerry freed; 24th October 2012 at 08:06 AM. Reason: typos
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  5. #5
    1000+ Posts gerry freed's Avatar
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    The day closed with the shares at 5.82, a drop of around 2.5% and with the government reported as being prepared to guarantee up to 7 billion euros to keep the company afloat in France. Meanwhile, negotiations continue with GM about Opel with PSA and they are going on behind closed doors.
    The Opposition walked out of Parliament today as the PM was speaking in protest against what they describe as an economic policy that is crippling France. It is a component of the argument by the auto assemblers and other major employers that the government refusal to address the cost of operations in France is now blocking new investment.
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  6. #6
    Fellow Frogger! DaveB's Avatar
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    +1 vote for the reportage.

    Interesting news.

    Thanks

  7. #7
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    Quote Originally Posted by DaveB View Post
    +1 vote for the reportage.

    Interesting news.

    Thanks
    Plus another. Thanks for your interest in our interest.
    Jaahn

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