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PSA Makes Opel Profitable a Year After Buying It From GM

Company makes $588 million in first half of 2018.

by on Jul.24, 2018

PSA CEO Carlos Tavares has been credited with turning around the near-bankrupt French company, and now making a profit at Opel in just one year.

In just about a year, PSA Group managed to do something General Motors Co. hadn’t done 20 years: squeeze a profit out of Opel. PSA bought the company as well as its British sibling Vauxhall from GM for $1.3 billion euros last year.

The German brand reported a profit of $588 million, or 502 million euros, through the first six months of this year compared with a loss last year.

Global News!

The profits excluded $492 million, or 406 million euros, in one-time charges, after the company reached an agreement in May with German labor representatives to eliminate 3,700 jobs from Opel’s German workforce of about 20,000 employees. (more…)

Maven to Let GM Vehicle Owners Profit from Car-Sharing

Vehicles from '15 model-year on can be used in new peer-to-peer test.

by on Jul.24, 2018

GM owners will be able to make money renting their vehicles when they'd normally be sitting idle.

We’ve entered the “sharing economy,” the experts tell us, with home-sharing operations such as AIRBNB, ride-sharing companies like Uber and car-sharing ventures like Car2Go becoming increasingly popular with American travelers and commuters. But now, General Motors’ own sharing service, Maven, is testing a program that could give GM owners a way to profit from this trend.

Maven has launched what it calls a “peer-to-peer car-sharing beta” that allows owners of relatively recent GM products to list their own cars through the service and pocket some of rental fees. If the program takes off, it would join other peer-to-peer car-sharing services such as Turo. And French automaker PSA, in its bid to return to the U.S., has launched a similar program in Los Angeles.

Consumer News!

“Your car is one of the most expensive things you own. Sitting idle, it is a wasted asset,” said Julia Steyn, vice president, General Motors Urban Mobility and Maven. “It’s time to put your car to work. Maven’s peer-to-peer offering is a smart way for owners to offset their vehicle investment.”

(more…)

Trump Tariffs Could Complicate PSA’s U.S. Market Return

“I could launch in Canada,” says PSA’s North American CEO.

by on Jul.17, 2018

While new Peugeot models, such as this 3008 crossover, would work for North America, PSA will develop unique U.S. products.

On Thursday, the U.S. Commerce Dept. will hold hearings in Washington, D.C. to decide if, as President Donald Trump has suggested, imported automobiles pose a threat to national security. If so, the White House could follow up with new tariffs of up to 25% on those vehicles.

That’s on top of the previously enacted tariffs on steel and aluminum that have already begun to drive up production costs for domestic manufacturers. And the industry’s response has been fierce in its opposition to the Trump administration’s proposal.

Stay in the Loop!

But as much as the potential tariff hike has complicated matters for existing manufacturers, it is raising even more challenges for potential new entrants to the U.S. market, including PSA, the French parent of the Peugeot, Citroen, Opel and Vauxhall brands, which is in the midst of developing a strategy to return to North America for the first time in more than a quarter century. (more…)

Accounting Adjustment Masks Record Full Year Earnings for General Motors

Workers will get $11,750 in profit-sharing.

by on Feb.06, 2018

GM CEO Mary Barra has pushed for major changes in GM's strategy, and the 2017 numbers suggest her approach is paying off.

General Motors officially reported a net loss for 2017, but the real numbers were masked by a series of accounting adjustments and actually climbed into record territory for the year.

The adjusted, $12.8 billion in pretax profits, which worked out to $6.62 a share – an 8.2% year-over-year gain – comes as good news to workers as well as investors at a time when economic uncertainty has shocked Wall Street. About 50,000 U.S. hourly employees will share the maker’s success with profit-sharing checks averaging $11,750 apiece. That bonus actually dipped from $12,000 last year.

Business News!

“The actions we took to further strengthen our core business and advance our vision for personal mobility made 2017 a transformative year,” said GM Chairman and CEO Mary Barra, in comments during a media and analyst conference call. “We will continue executing our plan and reshaping our company to position it for long-term success.”

(more…)

PSA Picks Atlanta as New North American HQ

French automaker in midst of 10-year plan to return to U.S. market.

by on Feb.02, 2018

PSA's new U.S. chief, Larry Dominique previously served as top U.S. product planner at Nissan.

Groupe PSA, the ambitious French carmaker that purchased GM Europe, selected Atlanta as the site of its new North American headquarters in Atlanta, Georgia.

The headquarters will be operational this month. A core team has already been set up to build the strategy and steer its execution. The decision to locate in Atlanta came after a yearlong, nationwide search to find the optimal balance of business environment, standard of living and workforce.

Global News!

“We looked at every aspect of the Atlanta community and found it to be the most suitable location for us,” said Larry Dominique, president of PSA North America.  (more…)