#Peugeot

Despite a plan for a financial turnaround by 2015, PSA projected a cash burn rate as much as 1.5 billion euros for 2013. Meanwhile, PSA’s finance arm had their bonds downgraded to junk status.

Stop us if you’ve heard this one before. Unlike the poorly interpreted plans for Mazda to be a “premium” brand, PSA really is planning to take Peugeot upscale, despite having zero brand equity, an upscale Citroen line and zero exposure to the profit center of the future, low-cost cars.

After approving a $1.6 billion loan guarantee for PSA’s captive finance arm, the European Commission demanded a restructuring plan for all of PSA within six months.

It’s safe to say that 2012 was PSA’s annus horriblus. From job cuts to a shaky alliance with GM to bond rating downgrades, everything that could have gone wrong for Peugeot-Citroen ended up happening. And 2013 may not be much better, as the prospect of a bailout looks ever more like reality.

PSA is still faced with the structural problems that dog pretty much every car maker in Europe; a weak economy, rampant overcapacity and a demographic deck stacked against growth in the new car market. Unlike chief rival Renault, PSA has failed to expand its horizons beyond Europe, with little in the way of low cost offerings for emerging markets. On top of that, attempts by PSA at exercising financial prudence, like cutting jobs and closing factories, have been met with outrage in France. A proposed alliance with General Motors has produced little in the way of any tangible results.

The French government is denying that it plans to acquire a stake in PSA, but France’s Prime Minister told reporters that mechanisms for providing government assistance have already been vetted.

We at TTAC are very excited by modular platforms, and it has nothing to do with undiagnosed autism spectrum disorders or a lack of interest in the wider world outside autos. Modular platforms are the next great leap forward for auto makers; green cars help save cute animals, and thus get all the attention, but guess what underpins the Nissan Leaf? A version of Renault-Nissan’s B Platform, which underpins everything from the Cube to the Clio to the Sandero.

We did not believe that EU regulators would let France’s government bailout of GM’s alliance partner PSA skate through unchallenged. State aid to companies is against EU rules, and refinancing of Banque PSA Finance is state aid EU Competition Commissioner Joaquin Almunia wrote in a letter to the French government. This according to a report in the French daily Les Echos.

The fate of PSA and the Algerian people has been intertwined for decades. The group’s Aulnay plant, which is due to close, was originally staffed by immigrants from North Africa, lured by the promise of a better life and secure jobs in France. And while Peugeot sales withered in France, the brand has been traditionally strong in North Africa, with 2011 bringing a 93 percent increase in sales for Peugeot.

But Algeria’s push for a domestic car industry doesn’t seem to include PSA. Arch-rival Renault is due to set up a factory in the country, but PSA has apparently rejected overtures from the French government to take a stake in the ailing car maker.

Peugeot is deepening job cuts at its French factories, with another 1,500 positions set to be made redundant as part of a massive cost-cutting effort. Meanwhile, rival automaker Renault is expanding its operations in Morocco as its Dacia brand continues to steamroll through the European market.

Peugeot will eliminate an additional 1,500 French jobs by 2014, bringing the previously announced 8,000 layoffs close to 10,000, PSA managers told union representatives yesterday.

Next up in the “we couldn’t make this shit up” category – PSA and Citroen were hit by strikes after workers were called out for being unproductive.

General Motors and PSA have put the brakes on talks regarding a broader alliance after PSA accepted financial assistance from the French government to help its ailing financial situation.

PSA is looking to challenge Renault-Nissan’s dominance of the low cost car segment with a new sedan branded as a Peugeot.

Are you talkin’ to me???

There was the Cadillac of minivans. A different kind of company selling a different kind of car. A Swede with no compromises, and a Frenchman that went from strength to strength.

Daihatsus that were perhaps, a bit too modest, by skinny dipping their unknown name in a slogan-less lake. And then we had that crazy distant Yugoslavian cousin who bragged about a ‘road back to sanity’ while his neighbors blew up his plant.

Fans of HBO’s hit show The Wire will remember The New Day Co-Op, a coalition of Baltimore heroin dealers who band together in part to get better deals on their drug supply and remain strong against law enforcement and rival gangsters. Half a world a way, a similar proposal was floated by Fiat CEO Sergio Marchionne, but never came to pass.