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PSA reportedly ditching its two tiny gasoline city cars ahead of merger

The Peugeot 108.   PARIS — PSA is ending the production of Peugeot and Citroen small city cars, three sources told Reuters, withdrawing from an increasingly unprofitable market as its starts a strategic review ahead of its planned merger with Fiat Chrysler. While PSA had already agreed to sell its stake in its Czech joint venture with Toyota where the Peugeot 108 and Citroen C1 models are made, the decision to stop selling the gasoline cars altogether has just been taken, the sources said. Carmakers are reviewing the production of vehicles with combustion engines as they need to fit costly exhaust filtering systems to meet tighter emissions laws. That's pushing up the cost of some so-called entry-level A segment cars to the point where they are hard to justify economically. "PSA is getting out of both the factory and the A segment business, as it is offered today, and on which manufacturers have arguably lost the most money in Europe," one of the sources familiar with the matter said. PSA declined to comment on the future of the two small cars. It said it was reviewing which products would best meet customer expectations in the A segment and cope with European carbon emissions targets. "This means a reflection with fresh and disruptive ideas," a spokesman for the French carmaker said. The European Commission is planning to tighten its emissions limits for cars under new proposals designed to cut the bloc's greenhouse gas output further by 2030. PSA's merger project with FCA has also increased the options available, two of the sources said, as the Italian-U.S. company has no intention of abandoning its small best-selling Panda and 500 models. Both already have hybrid versions and the 500 is also available in full electric mode. "Current projects could be replaced by new ones made possible by the merger with FCA", another source said. "The merger is turning all the cards around, especially when you consider that the A segment, from the very first 500 to the Panda, is inseparable from Fiat history". FCA declined to comment. PSA and FCA aim to finalize their merger in the first quarter next year to create a new company called Stellantis, which will be the fourth-biggest automaker in the world. Market contraction The European market for frugal city cars has been shrinking for several years.

Mullin Museum closing after 14 years showcasing amazing vehicles

More sad news to start the year is that the Mullin Automotive Museum in Oxnard, California, is closing in two weeks. Founder Peter Merlin opened the museum in 2010 with a mission "to educate guests about 20th-century French automotive styling and design." This was done beautifully — literally and figuratively — with a focus on vehicles spanning from the Brass Era (1896-1915) to the early postwar period, some taken from Peter Mullins' personal collection. The heavy focus was on French automakers during the interwar period, Art Deco to the Machine Age (1918-1941), namely, Bugatti, Delage, Delahaye, Talbot-Lago, and Voisin, supported with automobilia, sculpture, a theater, and archives.    A lot of enthusiasts might not be familiar with the museum, but the fingerprints of founder Peter Mullin and wife Merle can be found throughout the car world. Peter, who died last September, had amassed the world's largest private collection of Bugattis. Back when a $40 million vehicle sale was enough to be crowned a record sum, Mullin opened his museum with the display of the record-breaking 1936 Bugatti 57SC Atlantic, on loan from the purchaser. He won Best in Show at the 2011 Pebble Beach Concours d'Elegance with his own 1934 Voisin C-25 Aerodyne. The museum put on the shows you'd expect of a private Bugatti collector, like Art of Bugatti in 2014; shows you'd expect of a Francophile institution, like "Citroen: The Man, The Marque, The Mystique" in 2017; and surprises like last year's "ArTexture" exhibit of fine art and tapestries by artist Keith Collins. And he was one of the founding board members of the Petersen Automotive Museum, helping the museum through the renovation that turned it into one of the coolest car spots in LA.     Speaking of which, four of Mullins' personal rides will go on permanent display at the Petersen: a 1937 Talbot-Lago T150 CS “Teardrop,” a 1938 Delahaye 145, a 1938 Hispano Suiza H6B Dubonnet Xenia, and a 1939 Delahaye 165. The museum is only open on Saturdays and Sundays, its last day open being Saturday, February 10 — leaving three more visits for anyone who can make it. Said Merle, who continued keep sharing the collection at shows from Amelia Island to Villa d'Este during Peter's illness, wrote in a statement on the closing, "Sharing these ‘rolling sculpturesÂ’ and beautiful art with others was PeterÂ’s truest passion, and the museum helped bring that vision to life.

How good would this look as a Dodge? New Peugeot 408 is a cool EV crossover coupe

Americans have long lusted after the forbidden fruits of the automotive markets: Vehicles offered elsewhere but not sold here in the United States. When Fiat Chrysler Automobiles, former parent to Jeep, Chrysler, Dodge, and others, joined forces with PSA (Peugeot and others), there was hope that Americans could get hold of some quirky French cars as part of the deal. That hasn’t happened, at least not yet. As it turns out, Europeans get just as many boring crossovers as we do, though Peugeot thinks it has a solution with the new 408, an aerodynamic compact crossover with style for days. While we seriously doubt a rebadged 408 would ever show up on our shores, it's easy to imagine how a vehicle looking something like this on the same electrified platform could spawn a viable product for the American market. Squint a bit and "new electric Dodge Intrepid" comes to mind.  Perhaps it shouldn't be surprising that France would come out with a new vehicle that seems well-matched to the American market. Utility vehicles made up 46% of new vehicle sales in France in May, matching the sales numbers of sedans in the country. PeugeotÂ’s banking on the fact that many people want the space and usability of a compact SUV but tire of the styling and ubiquity of the vehicle type. The fastback shape provides a more dramatic design look without completely sacrificing the characteristics that make SUVs so popular.  Peugeot offers a traditional SUV in the 3008, but the 408 is sleeker and more aerodynamic. The automaker says that the 408 “offers a feline stance and unique allure, engineering excellence focused on efficiency and intelligent electrification, as well as the emotions provided by cutting-edge technologies dedicated to driving pleasure and instinctive use." Two plug-in hybrid powertrains will be offered first, producing 180 and 225 horsepower. A standard gas model will also be available with a 130-horsepower engine. All variants get an eight-speed gearbox, and Peugeot says an electric model will come later. No Stellantis brand in the United States currently offers a purely electric vehicle.  Peugeot will build the 408 at its plant in Mulhouse, France, for the European market. The vehicle will go on sale early in 2023 and will later become available in China. Related video: Featured Gallery 2023 Peugeot 408 Green Green Dodge Citroen Crossover Future Vehicles