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End of the road for French flagship sedans as Citro"en C6 production winding down

Fri, 14 Dec 2012

Even if their avant-garde styling has historically meant that they would never enjoy the sales success of their more staid German counterparts, it was always somehow comforting to know that the French were building large sedans. With a history of nontraditional looks and peerless ride quality (a legacy built on the hydropneumatic suspension of the original Citroën DS), big French cars have always been an acquired taste.
And now it appears buyers with that specific palette won't have a clear place to go, at least for a while. According to Automotive News, production of the Citroën C6 shown above (click to enlarge) is scheduled to cease this month, leaving French buyers (and Francophiles) without a true-bleu option. As the article points out, Renault will still offer its Latitude - effectively a badge-engineered rework of the Korean-built Samsung SM5 - but patriotic consumers have apparently been staying away because it isn't French enough (Renault has sold under 3,800 examples this year).
Renault may yet provide an answer for its displaced countrymen in the form of a new Initiale Paris-branded flagship offering that would be developed on Mercedes-Benz E-Class britches, but it has not yet decided whether it will move forward with the car. The alternative, to follow Citroën and Peugeot in leaving the segment, is probably looking quite appealing now, especially with Europe's continued economic malaise.

PSA and Renault both hit by autoworker strikes

Sat, 01 Dec 2012

Peugeot-Citroën (PSA) and Renault were both the targets of autoworker strikes on Thursday, the result of ongoing tensions between labor and management in the wake of planned facility closings in 2014.
3,000 French jobs stand to be lost in less than two years when the PSA's Aulnay plant executes a planned closure of a production line. The line in question currently builds Citroën's C3 subcompact model.
Negotiations are reportedly still underway, with PSA pledging to offer jobs elsewhere to about half of the Aulnay workers that stand to be laid off.

GM, Peugeot cease tie-up talks over French bailout issue

Wed, 14 Nov 2012

The partnership General Motors (via Opel) and PSA Peugeot/Citroën began in February has produced more declarations and revisions than easily identifiable positive movement. A deeper collaboration between Opel and Peugeot has been mentioned a few times, perhaps even a sale of one to the other, and a report in October laid out joint plans like a small MPV for Opel/Vauxhall, a small car for both Opel and Citroën and two new platforms for small and midsize cars.
What observers can't glean from the proclamations is how all this can happen with Peugeot in constant, and worsening, financial trouble. The French company just accepted a bailout from the French government, the cash position at its lending arm so bad that the interest rates it had to charge were pricing it out of the car-loan market, and a new report in Reuters says that Peugeot is losing $200 million per month.
That cash-burn rate is better than a few months ago, but the Reuters report explains that the French government loan is "sabotaging" any chance of a closer tie-up between the two companies, said to include the possibility of "a full combination of Peugeot with GM's European unit Opel." That particular option, with a $5-billion buy-in from GM, could have allowed GM to get Opel off its books by making it part of a separate entity. The French government's terms for the loan, however, mean that Peugeot can't shed workers and factories as it would need to in order to make the new entity, and any deeper ties with Opel, viable.

Ford, Renault, VW shareholder oppose French aid for PSA/Peugeot-Citro"en

Mon, 29 Oct 2012

Pots and kettles, glass houses and stones - that's a little of what we appear to have going on in the European car market. New reports say that that three European automakers have registered their opposition to a loan deal that PSA/Peugeot-Citroën is working on with the French government. Peugeot's finance arm, Banque PSA Finance, is struggling with its debts and has been downgraded by Moody's to its lowest investment-grade classification, one step above junk. This makes it more expensive for a potential buyer to finance a car through Peugeot. The last thing Peugeot needs is more difficulty selling cars in the tough European market, and the situation will only worsen if the bank's credit worthiness takes another hit.
A deal being worked on would have the French government offer €7 billion ($9B U.S.) in bonds to guarantee the bank's loans, which would give the institution some breathing room to manage its debts and lower its interest rates. Outside of that, a group of banks would provide other, non-guaranteed loans to the bank to further help its position. In exchange for state help, though, the government wants seats on Peugeot's board for worker representatives and a government liaison, along with factory and worker guarantees. The Peugeot family would maintain control of the company.
So what we have is government assistance being provided to a car company's finance arm, akin to the way General Motors' GMAC (now Ally Financial) and Chrysler Financial got help in their time of need. What we also have is Ford and Renault, and Germany's State of Lower Saxony, the second-largest shareholder in Volkswagen, voicing their concern about the proposal, because they say it could create an unfair competitive advantage for Peugeot. Everyone in Europe's down market is fighting for every sale, and if Peugeot gets help to keep its auto loan costs down, it figures to help buyers choose Peugeot or Citroën.

GM and PSA detail four new co-developed vehicle projects

Wed, 24 Oct 2012

New details have emerged this morning regarding a partnership between General Motors and PSA Peugeot-Citroën. Following talks that started back in February, the American and French automakers will apparently team up to develop several vehicles, including a small MPV for Opel/Vauxhall and a compact crossover for Peugeot. Also planned is a small car for both Opel and Citroën.
Additionally, the two companies will co-develop a low-CO2-emitting small car platform to underpin the next generation of Opel and PSA models. The detailed plans call out a midsize platform to be shared between Opel/Vauxhall and Peugeot/Citroën.
As much as $2 billion in savings are expected in the next five years as a result of this venture. In a statement from GM and PSA, "All four projects will be developed combining the best platform architectures and technologies from alliance partners."

WRC crowns driver and manufacturer champs, any guesses who? [spoilers]

Mon, 08 Oct 2012

Brace yourselves, ladies and gentlemen, for a shocking announcement: Sébastien Loeb has won the 2012 World Rally Championship title, and his Red-Bull-sponsored Citroën team took home the manufacturer's trophy.
For those keeping track, this is Loeb's ninth WRC title, and the season-clinching win at Rally France - in front of fans from his hometown of Haguenau, no less - marks the 75th time Loeb has driven to victory in the series. So dominant was Loeb in 2012 that his title has been secured with two races remaining on the calendar.
Sébastien Loeb has announced that he will be in something of a retirement mode in 2013, but it remains to be seen what the 38-year-old Frenchman will do with all his new-found spare time.

2013 Citro"en C3 Picasso exemplifies utility, cubist charm

Sat, 29 Sep 2012

We Americans are far too self-conscious to widely adopt the immensely utilitarian MPV, opting for bloated, high-riding crossovers. In Europe, on the other hand, vehicles like the Citroen C3 Picasso are optimal for families in towns where the streets were once farm paths.
This funky people-mover was first unveiled in 2007 and has gone on to move more than 320,000 units in sales. Citroën brought very little to the table in the way of specs, but from what we can tell, the visual updates are on the subtle side, bringing it more in line with the rest of the French automaker's product offerings. The free-floating double-chevron logo of Citroen is now anchored by faux vents that run from headlight to headlight. Upper and lower grilles now have a honeycomb pattern, and LED running lights have been added below the fog lights.
Pricing and availability have not yet been released, but that information will become available as the C3 Picasso nears its arrival in dealerships in January of 2013. More details are available in the press release below.

2013 Citro"en DS3 Cabrio shows trick folding top to the world

Fri, 28 Sep 2012

Citroën's DS3 line has been a huge success in its home market of France ever since the car was launched in 2009. Sitting in the fat-middle part of the luxury category, it only makes sense that a convertible variant for the DS3 pop up sooner or later - and later is the Paris Motor Show.
The 2013 DS3 Cabrio should provide a stylish roofless option for European customers when it goes on sale in the beginning of 2013, especially as it boasts the same buttoned-down bodylines of the standard hatchback. That pattered, fabric roof affair slides and folds neatly away automatically, and can come to rest in one of two positions. The whole affair reminds us a lot of the rag roof on the Fiat 500C, albeit fitted to a vehicle that is far more useful for back seat passengers.
While we already shared most of the details of the car, our gallery of live images is worth a browse, even if you're not mad for all things Citroën.

PSA plans to cut 8,000 jobs

Wed, 12 Sep 2012

The French government has said that PSA/Peugeot-Citroën must make large job cuts in order to stay financially afloat. A large restructuring would also need to take place as the carmaker deals with the current European economic climate and a production capacity excess.
According to an Automotive News Europe report, the government of France launched an investigation into the "financial health" of PSA, and its results subsequently criticized several decisions the company made, including the shuttering of plants near Paris without leaving failsafe options for production like its Madrid factory.
The result of the study is that the French automaker plans on cutting 8,000 jobs - on top of the 3,500 axed last year. Also planned is the closing of its Aulnay plant near Paris, along with a significantly downsized workforce at its Rennes plant in western France. Last year, PSA's small car plants were running at only 61 percent of maximum capacity.

Watch some drunk German football fans cheer on a parallel parker

Thu, 19 Jul 2012

Europeans, as we know, take their football (our soccer) seriously - it isn't until a team wins that their fans can stop being so focused and have some serious fun. Exhibit A: after the German national team beat Argentina in Euro 2012, some chaps still full of cheer (and beer, presumably) came upon this woman trying to slot her tiny Citroën C2 into an equally tiny parking spot. Naturally, they decided she could use a cheer of her own. It is guaranteed this did not happen after the Germany-Italy game.
When people say they want their own theme music or cheering section or Mariachi band, we're pretty sure this is isn't at all what they mean. But it's funny for us. Check it out below.