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Posts Tagged ‘peugeot plant closing’

VW Posts Solid Second Quarter Despite Net Profit Decline

Rival Peugeot slides deeper into a hole - yet investors cheer.

by on Jul.31, 2013

VW's net fell sharply - but that was largely due to its takeover of Porsche.

At first glance, it might have seemed a tough quarter for Volkswagen AG. After all, the maker’s net profit tumbled by half compared to year-ago levels. But the 2% jump in operating earnings is what analysts and investors are focusing on.

VW’s net was hammered largely by the anticipated, one-time costs associated with its takeover of German sports car manufacturer Porsche. The operating income, up 1.8% year-over-year, tells how the maker was able to hold its own in what it called a “difficult market environment.”

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In fact, an even clearer picture of that environment emerged from the earnings report posted by VW’s French rival PSA Peugeot Citroen which saw its losses climb to 426 million euros for the first half of the year due to declining European car sales and a strike by workers protesting its plans to close factories, reduce capacity and eliminate 8,000 jobs.

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French Government Bails Out Peugeot

Move could threaten maker’s alliance with GM.

by on Oct.24, 2012

The Peugeot Onyx Concept at the Paris Motor Show.

With Europe’s automotive crisis worsening, the French government has prepared a bailout plans for PSA Peugeot Citroen. The plan to aid Europe’s second largest automaker revolves around a government-backed refinancing deal for the company’s lending arm.

The deal is creating significant controversy among both the French public and within the Socialist government elected earlier this year, some members of the cabinet of President Francois Hollande threatening to walk out over the move.

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“Banque PSA is now government-backed,” London-based Credit Suisse analyst David Arnold told Reuters. “It’s becoming increasingly obvious that selling assets won’t stem the cash outflow.”

Peugeot’s financial position has continued to deteriorate as car sales in western and southern Europe have collapsed, sending the maker’s stock to historic lows.

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New French Pres. Rips Peugeot Bailout Plan

Potential problem for partner GM?

by on Jul.16, 2012

New French Pres. Hollande says "Non!" to Peugeot's plan to close an excess plant.

French President Francois Hollande wasted no time ripping into PSA Peugot Citroen’s plans to close a major assembly plant north of Paris as part of a turnaround plan expected to be used in seeking a government bailout of the ailing automaker.

The new leader, who took the Socialist Party back into power, took a distinctly different position from industry analysts and press pundits.  With rare exception, they had immediately hailed Peugot’s announcement last week as the long-awaited start of the restructuring of the European auto industry.

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The Continent has seen a four-year slide in automotive sales and though there is near universal agreement that Europe has far too much production capacity manufacturers have, until now, been unwilling to make the first cuts.

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