PSA to re-enter North America with DS brand?

[Madman]

From Automotive News:

http://www.autonews.com/article/20160405/OEM01/160409901/psa-plots-3-stage-return-to-u-s


PSA plots 3-stage return to U.S.
Tavares' updated plan initially just calls for car sharing, possibly of EVs


PSA Peugeot Citroen unveiled a 10-year plan that could eventually mean the return or launch of Peugeot, Citroen and DS models in the U.S. market.

In an hourlong presentation for analysts and investors today at PSA's Paris headquarters, CEO Carlos Tavares said the updated blueprint would allow the automaker to "come back to a place where we can make significant profits."

Still, Tavares' plan for the U.S. market was pretty scarce of details. It is one part of a broad "Push to Pass" program outlined Tuesday to build upon a two-year recovery that has seen PSA swing from near-bankruptcy to its highest profitability in 14 years, with the help of a rescue from the French government.

PSA has formed a team to study the U.S. market, customer and regulatory requirements, but selling vehicles in the U.S. would be just the third step in a three-step plan, Tavares said.

The first step is "to start as a mobility operator from 2017, possibly with Bollore," Tavares said.

Bollore is a French diversified group that builds batteries and electric compact cars mainly used by a car-sharing program in France called Autolib.

Bollore and Citroen are cooperating to launch a production version of the E-Mehari compact EV unveiled in March at the Geneva auto show.

The second step in PSA's possible return to the American market could be to "develop mobility solutions using our cars," Tavares said. He added that the vehicles would be part of a car-sharing or leasing program and would be owned by PSA and not by customers.

If the mobility and car-sharing programs show positive results, PSA could return "to sell cars in the U.S. supported by regional sourcing when appropriate," Tavares said.

Two years ago, Yves Bonnefont, CEO of PSA's DS near-premium brand, mulled entering the U.S. market in select big cities.

"We want to make DS a global premium brand, and you cannot be global without the U.S.," Bonnefont told Automotive News Europe at the Paris auto show in October 2014.

The plan to return to the U.S. was part of a global strategy to sell DS vehicles in 200 large cities worldwide after 2020. The targeted cities would include 30 in North America and 20 in the U.S., Bonnefont said at the time.

Bonnefont said a decision to return to the U.S. would come in 2017 at the earliest, and U.S. sales would not begin until after 2020.

Tavares has previously downplayed Bonnefont's ambitions, saying that DS's entry in the U.S. would have to be part of the company's updated strategic plan.

The revised plan released today does not include a specific commitment to the DS brand for the U.S.

Peugeot pulled out of the U.S. in 1991. The Citroen brand sold small numbers of privately imported models. The DS brand was never sold in the U.S. and none of its current five models respects Federal standards.

[CALL_911]

will be v interesting to see them flop

[giant_mtb]

lol car sharing?

[2o6]

lol car sharing?

Car2Go is really successful and useful in bigger cities.

[2o6]

will be v interesting to see them flop

I think if they keep numbers appropriate, they could carve out a niche.


I think Alfa/Fiat will flop harder.

[93JC]

@ "mobility operator"

[12,000 RPM]

I think if they keep numbers appropriate, they could carve out a niche.


I think Alfa/Fiat will flop harder.

Alfa/Fiat have Chrysler's existing dealer network

PSA has nozzing

Truthfully the cars are irrelevant. It's the massive investment of building the dealer and service infrastructure that will be the big hurdle. Companies with hella brand equity & decades of infrastructure are struggling to make a dolla. I just don't see how PSA will do any better.

[12,000 RPM]

@ "mobility operator"

You laugh, but if autonomous cars really become a thing a lot of people will forego owning cars. What would be the point for someone who doesn't care about driving?

[Madman]

PSA Peugeot-Citroën is now PSA Groupe.


http://www.thetruthaboutcars.com/2016/04/new-name-new-frontiers-psa-peugeot-citroen/

[12,000 RPM]

Why the "e" at the end of Group? Looks like grope

[2o6]

Alfa/Fiat have Chrysler's existing dealer network

PSA has nozzing

Truthfully the cars are irrelevant. It's the massive investment of building the dealer and service infrastructure that will be the big hurdle. Companies with hella brand equity & decades of infrastructure are struggling to make a dolla. I just don't see how PSA will do any better.

By keeping profits/supply in check? They don't sound like they want to dominate the US market, just expand and market themselves.


And using a car sharing service may help get their models into people hands and generate publicity

[ifcar]

I wonder if the people who rent car-shares are more likely to be the people who don't own a car and/or don't care about cars, though, and wouldn't form any impressions or recollections of what they've rented -- even more so than the normal rental market, because the customer base doesn't even include travelers.

[Madman]

Why the "e" at the end of Group? Looks like grope

Because French.

[93JC]

You laugh, but if autonomous cars really become a thing a lot of people will forego owning cars. What would be the point for someone who doesn't care about driving?

PSA isn't planning on building autonomous cars, they're trying to sell cars. The article even says so: "PSA has formed a team to study the U.S. market, customer and regulatory requirements, but selling vehicles in the U.S. would be just the third step in a three-step plan, Tavares said."

"The first step is 'to start as a mobility operator from 2017, possibly with Bollore,' Tavares said." Being a "mobility operator" isn't about autonomous cars or a carsharing service, it's jargon for "electric charging station company". That's it, and that's the part I'm ing at. That's a stupid plan if you don't have the cars, and Bolloré doesn't make a car that would appeal to the North American market. They're not going to ingratiate themselves into the North American market by trying to be Tesla but with a bunch of cheap, shitty three-door subcompact hatchbacks.

"The second step in PSA’s possible return to the American market could be to 'develop mobility solutions using our cars,' Tavares said. He added that the vehicles would be part of a car-sharing or leasing program and would be owned by PSA and not by customers." Okay, fine, but that's more about the service itself than it is the cars. Daimler's doing okay with car2go because the service itself is easier to use than most of its competitors. Here in particular they've cornered the carsharing market because you can make one-way trips and park the cars damned near anywhere, which none of its competitors do. That doesn't necessarily sell Smart cars though. I use car2go often (I did to get to work this morning): it doesn't make me want to buy a Smart Fortwo, at all. They're cheap plasticky shit. I don't care for the Mercedes-Benz B-classes either. Renting a car for a 15-minute trip doesn't make me want to buy one in the same way that renting a Saturn Aura for two weeks didn't make me want to buy one. I only took the car2go Smart car because I knew I could park it anywhere downtown and wouldn't have to pay for parking.

In my opinion it's a horrible plan. Steps one and two of their three-step plan are a waste of time and money if the end-game is to sell cars to the buying public in step three.

[12,000 RPM]

By keeping profits/supply in check? They don't sound like they want to dominate the US market, just expand and market themselves.


And using a car sharing service may help get their models into people hands and generate publicity

Even just getting a half decent footing in the market will be like swimming up a waterfall. US auto market has never been more competitive or expensive to operate in.