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JLR potentially up for sale to PSA - smallcar
I’m a bit mystified how PSA is suddenly seen as a successful profitable car company and on the hunt for others. What has the CEO Carlos Taveres done to achieve this Midas touch status ? I had my money on PSA going bust and could see no logic in buying Opel/Vauxhall when the latter seemed destined for the scrap heap. I don’t find their model range particularly logical or distinctive at least on the Peugeot side.

What am I missing?
JLR potentially up for sale to PSA - badbusdriver

You don't find the Peugeot model range logical?, can you explain what you mean by that?. Seems a lot more logical than most of the (supposedly) premium brands.You have four model lines of 'normal' (i.e, not SUV or MPV) cars of ascending size, the 108, 208, 308 and 508. Three model lines of SUV, 2008, 3008 and 7 seat 5008. And three model lines of (van based) MPV's, Rifter, Traveller and Expert Combi. IMO, you'd struggle to find a more logical model range. Of course, if you don't like Peugeot's, you don't like Peugeot's, but that is neither here nor there.

Compare that to the endless and deeply confusing model lines from Audi BMW and Merc, its amazing anyone can actually decide which model fits their needs.

As for Carlos Tavares, no special 'midas touch', just ruthless efficiency drives, streamlining production, and therefore, ultimately, slashing production costs.

JLR potentially up for sale to PSA - paul 1963

Nothing to add to that, totally agree...

JLR potentially up for sale to PSA - RT

Opel/Vauxhall was badly run - too much interference by GM Detroit in European markets they didn't/don't understand. - also with typical multi-national accounting practices which overcharge subsidiaries to transfer profits to head office - from that environment, it's easy to see how PSA turned them into profit so quickly.

JLR was a profitable specialist manufacturer, but heavily dependent on sales in China and diesels in Europe - when those two markets slumped, sales dropped badly.

PSA Groupe is untested as a global manufacturer and untested as managers of multi-brands - time will tell.

JLR potentially up for sale to PSA - smallcar
badbusdriver- I really meant distinctive rather than logical in their model range. To answer the question “I bought a Peugeot because.....” when asked it in the pub.

With other makes I can understand their proposition more clearly. “Kia and Hyundai have longer warranties and give you japanear reliability for less money” etc and a different argument for the Germans etc.

I suppose I’m just not convinced by their sudden SUV focus for a brand I always associated with family hatchbacks and proper saloon and estate cars. In the past they had a clear positioning in the 70s and 80s producing well engineered comfortable and durable cars and were pioneers in producing mainstream diesel cars and in producing good estate cars in particular 504, 305, 505, 405 in a very strong lineup. Then it all went a bit soft and ugly and then just desperately gimmicky with the look over the steering wheel to see the instruments nonsense and I cant think what is distinctive about them anymore - to have strong competency in any one or two areas (unlike ride and handling or the Diesel engines which they had before) .

I don’t find the look of their cars particularly impressive or unique either - I saw a Peugeot 508 in an airport display and thought if you chipped of the branding it could be anything from China or a us manufacture. Compare that to the really strong pininfarina designs of the 70s and 80s where you could tell a Peugeot from 200 m away. Completely generic design but they are trying to claim is now high quality and up with the Germans. I know other brands are also suffering from so many designs looking alike so it’s not just Peugeot I find a bit wanting int that department.

I wonder who is buying them when they seem to be viewed as middling on quality and reliability and with not great residuals compared to the Germans which drives the PCP rates. I know that many of the other middling brands are struggling eg Ford and Renault so I assumed Peugeot was I the same mire. Clearly Mr Taveres has found a away to get a middling company to profit .

Edited by innerlondon on 13/05/2019 at 15:26

JLR potentially up for sale to PSA - SLO76
He’s done a great job of turning the firm around. In recent years PSA cars were sold on price but now they’re making desirable motors that sell on desire again. They do need a prestige brand to lift margins and could if managed correctly work well with JLR but I’d rather see a dose of Japanese quality and reliability injected via Honda.

I think Honda need to take a chance and expand or they’ll struggle longterm against the bigger players. They would win from a properly managed takeover of JLR.

Edited by SLO76 on 11/05/2019 at 11:08

JLR potentially up for sale to PSA - focussed

Honda are focussing on the USA where the potential for growth in market share is, mainly due to the poor performance of the domestic brands.

Europe is not where they want to be in the future.

There are dealer groups in the USA that annually sell more Honda's than Swindon make in a year.

JLR potentially up for sale to PSA - pd

Honda is a bit of a dead duck in Europe, Sales have collapsed which has meant withdrawing of much of their range leading to even lower sales. They seem to have given up and become content with being a niche player.

I can't think of any Honda there is a single reason to buy. Maybe one or two CR-V models but the rest is ugly or forgettable.

Shame as they were, at one time, the Japanese pioneers for developing a range to European tastes.

JLR potentially up for sale to PSA - SLO76

Honda are focussing on the USA where the potential for growth in market share is, mainly due to the poor performance of the domestic brands.

Europe is not where they want to be in the future.

There are dealer groups in the USA that annually sell more Honda's than Swindon make in a year.

JLR’s biggest markets and greatest growth come from outside Europe too. It would give Honda a jump start into the premium SUV market where they’ve no presence.
JLR potentially up for sale to PSA - badbusdriver

Honda are focussing on the USA where the potential for growth in market share is, mainly due to the poor performance of the domestic brands.

Europe is not where they want to be in the future.

There are dealer groups in the USA that annually sell more Honda's than Swindon make in a year.

JLR’s biggest markets and greatest growth come from outside Europe too. It would give Honda a jump start into the premium SUV market where they’ve no presence.

Honda may well not have a presence in the premium SUV market here, but there is the Acura brand in North America, with the MDX prices going up to just over $60k. Not in the same ballpark as the upper end of the German trio granted, but a bit of a step up from the CR-V we get here!. Engine options are 3.5 V6 or 3.0 V6 hybrid. It is about the same size as an Audi Q7, and also has 3 rows of seats (6 or 7 depending on spec). Here are a couple of interior pics,

www.acura.ca/Content/acura.ca/813424ab-fecf-4ae2-9...4

www.acura.ca/Content/acura.ca/813424ab-fecf-4ae2-9...4

Not exactly slumming it!

JLR potentially up for sale to PSA - SLO76
Not exactly slumming it but a big step down in price, profit and global sales compared to Land Rover/Range Rover brand. The Japanese have always struggled with image when they try to do premium with Lexus being the closest they’ve managed to get.
JLR potentially up for sale to PSA - expat
Not exactly slumming it but a big step down in price, profit and global sales compared to Land Rover/Range Rover brand. The Japanese have always struggled with image when they try to do premium with Lexus being the closest they’ve managed to get.

The Japs may be struggling with image but JLR and BMW seem to be struggling with reliability. I know which I would rather have.

JLR potentially up for sale to PSA - SLO76
“The Japs may be struggling with image but JLR and BMW seem to be struggling with reliability. I know which I would rather have.”

Me too. I’d have a CRV over any current Range Rover if I was spending my own money. But a reliable Range Rover would be a dream car to me.

I’ve a friend who bought a first gen Range Rover Sport and I was appalled by the poor quality plastics inside and the never-ending reliability issues. Honda would never allow such low standards.
JLR potentially up for sale to PSA - nick62

I agree a Range Rover with "proper" Honda reliability would be a game changer................

...... it might bankrupt Honda in the process though?

JLR potentially up for sale to PSA - gordonbennet

The Japs may be struggling with image

They might be in the typical motoring press, the office car park and the school run display of SUV's that no one can reverse, but among those of a mechanical disposition and those running cars out of warranty that is not the case.

JLR potentially up for sale to PSA - Gibbo_Wirral

What am I missing?

In your rant - "Its rubbish cos its French" is the other tired old stereotype you generally see.

JLR potentially up for sale to PSA - smallcar
Well both French companies looked like they were marching into slow decline but clearly from the results PSA has turned a corner. I just thought in the PCP era we live in that middle market brands continue to struggle when so many see “I could have an Audi or BMW for that price” problem

JLR potentially up for sale to PSA - badbusdriver

Not really sure where you are coming from or what your arguments are about, but unless you just don't like Peugeot or the PSA group in general, your points don't add up.

I suppose I’m just not convinced by their sudden SUV focus for a brand I always associated with family hatchbacks and proper saloon and estate cars.

You don't like their focus on SUV's because in the 70's and 80's they didn't make them?, neither did anyone else!. How many SUV's did Audi make in the 70's and 80's?, or Mercedes?, or indeed BMW?. Peugeot are making SUV's because that is what buyers want so that is where the money is, it ain't rocket science!. And i wouldn't say they now have a 'focus' on SUV's, there are only 3 models, the 2008, 3008 and 5008. Mercedes have 8 by comparison(!), many of which overlap.

just desperately gimmicky with the look over the steering wheel to see the instruments nonsense

The new interior layout is a very creditable attempt to reduce the amount of time drivers are not looking at the road. Having the instruments right below the windscreen means the shortest possible distance (apart from a HUD) the driver has to move their eyes away from the road, which means less time not looking where you should be. I have not tried it myself, but have read that you need to be of at least average height or above for it to work in practice Full marks to Peugeot for trying something different though, and (IMO), a very long way from being 'desperately gimmicky'.

I don’t find the look of their cars particularly impressive or unique either

Obviously the looks of any car is entirely subjective, but personally, i like the looks of most current Peugeot's. I'm not a big fan of SUV's, but i think the 3008 is one of the most interesting and distinctive looking in its class. As for the 508, i think it is a fantastic looking car, sleek and distinctive but not 'shouty', like the German's. Based on looks, I'd honestly rather have one over an Audi A4, BMW 3 Series or Mercedes C Class.

Edited by badbusdriver on 13/05/2019 at 18:06

JLR potentially up for sale to PSA - gordonbennet

Can't add much to what BBD says in that extended post, spot on.

PSA have come up with some cracking vehicles over the years, they lost the plot a bit around the 206/407 era (hardly alone in that Merc lost it big time in the noughties, Honda lost it recently), don't know what they were thinking with the huge grill on 407/4007 suv shared with Mitsi, but they have got their act back again i think...maybe the geezer responsible for those awful grills they offloaded to Lexus?

JLR potentially up for sale to PSA - Lee Power

No idea why PSA would want to buy JLR, It could drive die hard buyers away worried about the French OR it could actually improve product quality & reliability once new models start coming on stream.

I'm on my 5th Peugeot a 308

Reason I bought it, the 1.2 petrol Puretech 130 engine is a truly outstanding piece of engineering, I still cant get my head round how a small 3 cylinder petrol engine can deliver the bhp & torque while at the same time give such good mpg figures.

The I-cockpit is also a brilliant idea for keeping your eyes on the instruments & road ahead at the same time with the small steering wheel easy to use to.

As an added bonus its easy to find in the work car park among an endless sea of Golf, A3 & Focus.

JLR potentially up for sale to PSA - Andrew-T

I'm on my 5th Peugeot a 308

You have some way to go - SWMBO and I are on our 20th Pug since 1989 - plus seven others owned by our daughters, who have betrayed their heritage by owning Nissans, Golfs or a Jag. In their defence I should say that their odd behaviour is mainly due to family business connections.

JLR potentially up for sale to PSA - smallcar

Let me explain more. My general point was in periods in the past eg late 60s to late 1970s and then Mid 80s to mid 90s I think as a manufacturer they were ahead of the game, much more the pioneer both on the Peugeot side and of course on the Citroen side too after they took them over (the latter was arguably less innovative to purists from 1974 on but Peugeot achieved a better sales performance by bringing them closer to the mainstream).

As examples the 504 and its Estate/Family variant in particular were seen as a well engineered sensible middle class option with a extremely good ride and available at a much cheaper price than the German opposition - there actually wasn’t a large German Estate car either bigger than a Passat unto the v expensive Merc (the high DM as ever causing much pain). Alongside the Volvo 240 estate the 504 had the large middle class estate market to itself for many years through the 1970s. It was the thinking person's purchase against limited choice in locallly made offerings. It was easy to explain why you bought one and I felt half my friends at school's parents owned one for carting you about to sport and to school.

In the 1980s the XUD engine revolutionised the acceptability of diesel power beyond the taxi market and for years and years was far ahead of the offerings of competitors. It started and sustained the mass movement of family cars and even modest hatchbacks to diesel and with good performance and amazing economy with little noise downside. It was far ahead and it was easy to explain why you bought one - if anything again it was the thinking person's choice - someone who had worked out there was something alot better than the bog standard Ford, ARG, Vauxhall offer.

In the mid 1980s onwards you also had the 205 - the definitive more sophisticated supermini that sold every where and saved PSA after an early 1980s recession. The gamechanging 205 GTI which showed their continued chassis expertise. Also the very light, quick and ultra efficient Citroen AX, the BX (which after its facelift started to sell in big numbers, aided by the XUD engine), and again with a very good ride and other distinctive features eg affordable pricing and good space efficiency compared to a Sierra. Again all of these had distinct advantages that differentiated them from their competitors and encouraged sales.

That is what I mean more about my perception that there is less that is distinctive about their current range. The move to offer SUVs is understandable but feels "me too", not getting out there in front of everyone and leading. What does it do now that is clearly ahead of the competitors and is known for it in discussions you might have down the pub and people then ask what you drive.

My surprise at the return to healthy margins (which is clearly commendable - we need more choice not less in the market) is that their offer between Citroen and Peugeot is very much in the middle of the market along with Ford and Vauxhall which I had thought was being squeezed by customers either going down to say a value brand like Dacia or going up to through a PCP being able to afford an Audi or a BMW or a Merc or sideways as a private buyer into Kia/Hyundai for a long warranty.

Interestingly a recent trip to France showed that unlike here they are much less in hock to the Germans and you see many more families and reasonably well off people in their own cars from Renault and Peugeot so they have at least on that turf recovered themselves and coupled with sharp cost control have managed to improve their margins.

I agree the 508 looks good. But it just doesn't immediately shout Peugeot to me. Perhaps now there is an increasing market for "not a German car like the rest of my street" and the 508 is winning that.

Another pet thought of mine is if the Euro ever disintegrated what would happen to the car market once the Germans got priced out with a new DM. Would it leave space for Peugeot and others to expand. That is for another thread.

Edited by Innerlondon on 14/05/2019 at 23:47