PSA Peugeot Citroen is the modern development of the coffee mill company founded by the Peugeot family in 1810. In fact, the same family still holds a 24.4 percent stake in the company as well as 38.1 percent of the voting rights – they still kind of run the automaker.
However, that may soon change, as according to a Reuter’s report, unnamed internal sources apparently suggested, “the Peugeot family has now accepted that they’ll lose control, so this is no longer an issue.”
The piece suggests that Peugeot is simply no longer able to sustain itself, and needs a massive infusion of capital, as well as a firmer hand when it comes to layoffs – have more of those.
It’s interesting how GM, which owns a 7 percent stake is now reportedly being brought in to clear up the mess, bringing the much needed cash with them, as well as the equally-important support when it comes to better management of the company, its assets and its employees, when the same report, which quotes Barclays analysts Michael Tyndall and Brian Johnson, says that “PSA’s situation has only deteriorated since the alliance was formed.”
Could they not have helped at all in the mean time? This just sounds like a takeover planned a years in advance, based on worsening European economics, as well as the fact that GM’s own Opel isn’t doing too well either, which like Peugeot, is also facing overcapacity and the prospect of thousands of jobs being made redundant.
Still, there’s always the chance that Dongfeng of China (which was apparently the other interested party) may also extend a helping hand, though, it is mentioned that negotiations between them and PSA were not doing particularly well. There’s also another Chinese automaker, looking for an ailing Euro manufacturer in need of cash and a more rigorous business model – perhaps the French giant is among their chosen three…
Hopefully, the final scenario will be a better one than what is described above and in the report itself. Besides, it could all be made up, as no named official sources from the two automakers agreed to comment on the matter, neither confirming or denying it.
By Andrei Nedelea
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