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PSA/Fiat Chrysler merger - Senexdriver

What do we think about this plan? Fiats, Peugeots , Vauxhalls all with PSA engines? However much people hate VAG group cars, they’ll soon have Peugeot engines as well if the PSA empire keeps growing.

Fiat’s problems have been known about for some time, but this development is a surprise to me.

PSA/Fiat Chrysler merger - Sofa Spud

But will the new company be French, Italian of American?

The answer is 'none of the above' - it will be Dutch - a new Netherlands based parent company is to be set up.

PSA/Fiat Chrysler merger - Will deBeast

But will the new company be French, Italian of American?

The answer is 'none of the above' - it will be Dutch - a new Netherlands based parent company is to be set up.

They could call it the Dutch Automotive Factory, or DAF for short!

Edited by Will deBeast on 31/10/2019 at 12:32

PSA/Fiat Chrysler merger - Terry W

This may just be natural evolution in a fairly mature and competitive market.

Increasing the volume of vehicles over which costs of development and manufacturing are spread reduces the unit cost. There is also less differentiation between national markets - it still exists but is much reduced.

In a few years there may be only 5 or so global manufacturers including Toyota, VW group, Hyundai/Kia etc. If you aren't in the big boys club (top 10?) you probably won't survive - you may be a target for Google, Apple etc as the hardware side of an electric and driverless vehicle company.

PSA/Fiat Chrysler merger - concrete

Given the general reliability problems exhibited by both brands I just hope they don't form the worst of all possible worlds. We all know what happened to Mercedes when they consorted with Chrysler. I struggle to name any really popular or generally acceptable product from either company apart from the Fiat 500. Here goes nothing. I hope PSA know what they are doing. Cheers Concrete

PSA/Fiat Chrysler merger - Lee Power

First thing Fiat should do is ask PSA to sort out the lack luster security system on the 500, there just far to easy to break in to & drive away without the owners key.

PSA/Fiat Chrysler merger - Avant

There must be something that Fiat/Chrysler has that PSA want: possibly particular factories or other assets, or if it's reputation, perhaps Fiat's in Italy and/or Chrysler's (which includes Jeep) in the US.

PSA/Fiat Chrysler merger - expat

There is too much manufacturing capacity in the car industry particularly in Europe. The new merged entity says it won't be closing any factories but that is what will need to happen. High cost plants will need to close and that will not go down well politically.

As for which car companies will survive - I think that will include at least one Chinese company. Probably Geely.

PSA/Fiat Chrysler merger - Andrew-T

There is too much manufacturing capacity in the car industry particularly in Europe. The new merged entity says it won't be closing any factories but that is what will need to happen.

And presumably Ellesmere Port is near the top of the list, especially if Brexit happens.

PSA/Fiat Chrysler merger - madf

There must be something that Fiat/Chrysler has that PSA want: possibly particular factories or other assets, or if it's reputation, perhaps Fiat's in Italy and/or Chrysler's (which includes Jeep) in the US.

Jeep ?

PSA/Fiat Chrysler merger - RT

There must be something that Fiat/Chrysler has that PSA want: possibly particular factories or other assets, or if it's reputation, perhaps Fiat's in Italy and/or Chrysler's (which includes Jeep) in the US.

Modular platforms, modern engine range, EV expertise are desperately need by Fiat - while PSA need a way of expanding to North America.

My guess is that Peugeots will be rebadged as Dodge for North America and Vauxhall will be dropped.

PSA/Fiat Chrysler merger - expat
My guess is that Peugeots will be rebadged as Dodge for North America and Vauxhall will be dropped.

Rebadging Alfas as Chryslers didn't work too well before so it may not work for Peugeots either.

All this consolidation of European makes under PSA sounds very like what happened in the 1950s and 60s with the British motor industry. That didn't end well.

PSA/Fiat Chrysler merger - Andrew-T

<< My guess is that Peugeots will be rebadged as Dodge for North America and Vauxhall will be dropped. >>

I remember, way back, the Golf was sold in the US as the Rabbit. Didn't sound like a clever Idea to me, but I don't know how successful it was ?

Maybe run Dodge and Vauxhall in parallel for a while to judge the effect?

Edited by Andrew-T on 01/11/2019 at 12:39

PSA/Fiat Chrysler merger - Bromptonaut

Maybe run Dodge and Vauxhall in parallel for a while to judge the effect?

Is Vauxhall used outside the UK?

Given it's purely a badge issue I cannot see why they'd change Vauxhall here as it's so well established. Exception might be if they want to create a VAG style brand hierarchy where (say) DS is premium and others are pitched at different segments.

PSA/Fiat Chrysler merger - RT

Maybe run Dodge and Vauxhall in parallel for a while to judge the effect?

Is Vauxhall used outside the UK?

Given it's purely a badge issue I cannot see why they'd change Vauxhall here as it's so well established. Exception might be if they want to create a VAG style brand hierarchy where (say) DS is premium and others are pitched at different segments.

No - Vauxhall is exclusvely for the UK & Northern Ireland - Opel is used everywhere else.

PSA/Fiat Chrysler merger - Vitesse6

I seem to remember a time when Vauxhall had such an awful reputation and poor sales they badged the cars as Opel in the UK until everyone had forgotten how bad Vauxhalls had been.

PSA/Fiat Chrysler merger - Engineer Andy

Maybe run Dodge and Vauxhall in parallel for a while to judge the effect?

Is Vauxhall used outside the UK?

Given it's purely a badge issue I cannot see why they'd change Vauxhall here as it's so well established. Exception might be if they want to create a VAG style brand hierarchy where (say) DS is premium and others are pitched at different segments.

They might do the same as the Chinese did with Rover, rebadged to MG, not that it made much of a difference to sales. Oddly enough, Holden (Down Under) is still part of GM and continue to sell essentially rebadged cars that are essentially the same as some Vauxhalls.

They used to be the biggest seller there too, now just about squeaking into the top 10 and with no local manufacturing base despite taking a nice amount of $Aus from their Aussie government a few years ago to keep their factories open.

I suspect that Vauxhall as a name will go in a few years as a car manufacturer, perhaps staying on in the van market, especially as sales of their cars (and of Opels on the continent) continue to decline. Vauxhall have never really had a 'premium' cache about them, so I can't see then being elevated to a 'DS' style brand, especially as PSA already has that in place.

To be honest, there are too many sub-brands that are, trim plushness and top-end engines aside, are not any different. Even with Kia and parent company Hyundai, I fail to see why they sell cars which are essentially identical in markets when they are the main competitor of eachother.

PSA/Fiat Chrysler merger - alan1302

To be honest, there are too many sub-brands that are, trim plushness and top-end engines aside, are not any different. Even with Kia and parent company Hyundai, I fail to see why they sell cars which are essentially identical in markets when they are the main competitor of eachother.

Because they make money...someone does not by the Kia and buys the Hyundai instead and vice versa. That way they get two bits of the cherry - seems quite obvious really.

PSA/Fiat Chrysler merger - Engineer Andy

To be honest, there are too many sub-brands that are, trim plushness and top-end engines aside, are not any different. Even with Kia and parent company Hyundai, I fail to see why they sell cars which are essentially identical in markets when they are the main competitor of eachother.

Because they make money...someone does not by the Kia and buys the Hyundai instead and vice versa. That way they get two bits of the cherry - seems quite obvious really.

So they spend lots of money making the same car look different to perhaps gain a few more customers - oh yeah, that's worth it. They could make much more money if they stopped competing against themselves.

PSA/Fiat Chrysler merger - Bromptonaut

So they spend lots of money making the same car look different to perhaps gain a few more customers - oh yeah, that's worth it. They could make much more money if they stopped competing against themselves.

Maybe, just maybe, if it were that simple VAG, PSA, Renault/Nissan, Kia Hyundai etc would see the light and produce one model for each market segment.

I suspect real life is more complex......

PSA/Fiat Chrysler merger - Engineer Andy

So they spend lots of money making the same car look different to perhaps gain a few more customers - oh yeah, that's worth it. They could make much more money if they stopped competing against themselves.

Maybe, just maybe, if it were that simple VAG, PSA, Renault/Nissan, Kia Hyundai etc would see the light and produce one model for each market segment.

I suspect real life is more complex......

Perhaps, but as I explain in my other post a short time ago, unlike with VAG, where there are specific differences in spec and trim level/quality between their marques (though not huge), there is almost nothing between Hyundai and KIA, thus I think they are competing against eachother. Perhaps they should consider making one of the makes a 'Lexus' type outfit or one more deidcated to the sportier end of the market?

Even PSA doe this with Citroen historically being the more 'value' brand, Pugs being the sportier one (though both in recent years have more come together, which I think has reduced sales as a result) and now DS being the 'premium' brand (not yet).

Renault and Nissan never really competed as their customer base has, in my views, been a completely different one, plus, barring the UK, they rarely compete against eachother overseas - Renault big in Europe, Nissan elsewhere around the world, especially in North America, Asia and Down Under.

PSA/Fiat Chrysler merger - alan1302

To be honest, there are too many sub-brands that are, trim plushness and top-end engines aside, are not any different. Even with Kia and parent company Hyundai, I fail to see why they sell cars which are essentially identical in markets when they are the main competitor of eachother.

Because they make money...someone does not by the Kia and buys the Hyundai instead and vice versa. That way they get two bits of the cherry - seems quite obvious really.

So they spend lots of money making the same car look different to perhaps gain a few more customers - oh yeah, that's worth it. They could make much more money if they stopped competing against themselves.

Hyundai made $5.2 billion profit and Kia $2.3 billion - they seem to know what they are doing. Maybe you could suggest to them how they could improve?

VAG seems to do well competing with itself...as does PSA with Citroen/Peugeot and Vauxhall/Opel.

PSA/Fiat Chrysler merger - Engineer Andy

To be honest, there are too many sub-brands that are, trim plushness and top-end engines aside, are not any different. Even with Kia and parent company Hyundai, I fail to see why they sell cars which are essentially identical in markets when they are the main competitor of eachother.

Because they make money...someone does not by the Kia and buys the Hyundai instead and vice versa. That way they get two bits of the cherry - seems quite obvious really.

So they spend lots of money making the same car look different to perhaps gain a few more customers - oh yeah, that's worth it. They could make much more money if they stopped competing against themselves.

Hyundai made $5.2 billion profit and Kia $2.3 billion - they seem to know what they are doing. Maybe you could suggest to them how they could improve?

VAG seems to do well competing with itself...as does PSA with Citroen/Peugeot and Vauxhall/Opel.

KIA make a profit NOW because they are owned by Hyundai - when they bought them out, they were a failing company, in debt and making losses. I suspect that in some markets, KIA had a much stronger presence than Hyundai ever did before the merger, so they bought them for their customer base.

In countries like the UK, there was not ever that much difference between them in terms of sales (from a low starting point) and thus I think them duplicating their ranges seems silly - they are too close in terms of spec/trim quality level to differentiate themselves like Toyota and Lexus do, or even the parts of VAG.

PSA/Fiat Chrysler merger - Glaikit Wee Scunner {P}

Kia Picanto seems more modern and better equipped than the Hyundai i10.

Quite different imho.

PSA/Fiat Chrysler merger - alan1302

Kia Picanto seems more modern and better equipped than the Hyundai i10.

Quite different imho.

Agreed,

I think Kia is marketed towards a younger market than Hyundai. Kia has come more sporty looking cars as well as the Stinger sports car.

PSA/Fiat Chrysler merger - Engineer Andy

Kia Picanto seems more modern and better equipped than the Hyundai i10.

Quite different imho.

Agreed,

I think Kia is marketed towards a younger market than Hyundai. Kia has come more sporty looking cars as well as the Stinger sports car.

Yes and no - apart from the Stinger, KIAs tend to come with a slightly more limited range of engines and specs, not by much, e.g. the Stonic available with the run-out 1.4MPI (non-turbo) engine and the 1.0T=GDI and 1.6TD, the Kona without the 1.4MPI but with the more powerful 1.6T-GDI.

Don't forget that the i30N has no equivalent with KIA, but the remainder of the i30 range matches that of the Ceed, barring one single variant sub-model (probably low sales) in the i30 1.6 T-GDI.

Most sales of their volume cars are direct competitors of eachother - the i30N and Stinger will sell in relatively low numbers and thus won't make much difference to overal sales figures.

With PSA/Flat Chrysler, this may be different, as their sales tend to be more geared to certain countries/regions so have less direct competition from eachother. At most, PSA and Fiat have the most direct competitors on the Continent, and I would say that this is far less than it used to be 10 -30 years ago.

PSA/Fiat Chrysler merger - Engineer Andy

Kia Picanto seems more modern and better equipped than the Hyundai i10.

Quite different imho.

More modern - they are the same car underneath - same engines, mechanicals, electricals, and, IMHO, the i10 looks better in terms of styling. The real difference is in the warranty period, which for UK buyers makes the Picanto the better bet. Other than that, the quality of the trim inside is no different, just different to look at. I prefer the i10.

PSA/Fiat Chrysler merger - alan1302

Kia Picanto seems more modern and better equipped than the Hyundai i10.

Quite different imho.

More modern - they are the same car underneath - same engines, mechanicals, electricals, and, IMHO, the i10 looks better in terms of styling. The real difference is in the warranty period, which for UK buyers makes the Picanto the better bet. Other than that, the quality of the trim inside is no different, just different to look at. I prefer the i10.

I'm the opposite - prefer the Picanto over the i10 - for me the i10 has a plain look, especially inside...although I do think the coloured panels remind me of our Fiat Grande Punto which may colour my views as that was not one of the better cars we've had!

I'd not buy the i10 but would have a Picanto - and I'm sure plenty of people have the same and differing views which is why I think it works for them selling similar cars in the same segment.

PSA/Fiat Chrysler merger - Glaikit Wee Scunner {P}

DDuplicate

Edited by Glaikit Wee Scunner {P} on 02/11/2019 at 20:44

PSA/Fiat Chrysler merger - SLO76
I get that quantities of scale will save the firms money, it’s likely this alone will return Vauxhall and Fiat to strong profit but PSA have always since taking over Citroen and basing their cars on Peugeot’s had a problem with competing against themselves too much. It will reduce choice and increase prices across the European market as competition is reduced. All firms under PSA control are too mainstream. What they do need is a budget brand to compete with Dacia and a premium brand such as JLR (also for sale) to pull margins higher.

VAG brands are too close to each other too with Skoda, Seat and VW all occupying the same market. I think that Skoda should’ve remained a true budget brand based on older VW designs instead they’re now over complex and premium priced at the top end. Seat should’ve been positioned in between Skoda and VW but currently that firm are struggling as VAG really don’t know what to do with them. Directly competing with each other has hurt VAG margins and damaged their dealer network.

Edited by SLO76 on 01/11/2019 at 14:54

PSA/Fiat Chrysler merger - Glaikit Wee Scunner {P}

I don't recall us every getting Opels as such in the UK. There was a Vauxhall equivalent of most Opel models. However I do remember the Opel Kadett being different to the Vauxhall Chevette. I shuddered at the recent re introduction of the Vauxhall Viva.

PSA/Fiat Chrysler merger - RT

Duplicate

Edited by RT on 01/11/2019 at 15:08

PSA/Fiat Chrysler merger - RT

I don't recall us every getting Opels as such in the UK. There was a Vauxhall equivalent of most Opel models. However I do remember the Opel Kadett being different to the Vauxhall Chevette. I shuddered at the recent re introduction of the Vauxhall Viva.

The Opels we got were different models to Vauxhalls - when they integrated Vauxhall with Opel, they stopped selling Opel here although there was a slight overlap period when the Ascona was sold here alongside the Cavalier mk1.

PSA/Fiat Chrysler merger - Zippy123

I guess the Fiat 500 is due for an update. Will it get the same running gear as the current C1 etc.

I wonder if Toyota will continue to use the platform for their Aygo?

As for Fiat cars, I am looking for a small automatic and think that the new Tipo is a good looking car. Not one local dealer has been able to source an automatic!

PSA/Fiat Chrysler merger - pd

The car making industry is going to go through it's biggest change ever in the next 10-20 years.

Semi-autonomous and autonomous driving, electrification, hybrids, all sorts of new tech and drivetrains and maybe a complete revolution in what actually goes into a car.

The investment needed is billions and it is no wonder terrified car manufacturers are rushing find ways of combining their development costs.

PSA/Fiat Chrysler merger - Engineer Andy

I don't recall us every getting Opels as such in the UK. There was a Vauxhall equivalent of most Opel models. However I do remember the Opel Kadett being different to the Vauxhall Chevette. I shuddered at the recent re introduction of the Vauxhall Viva.

The Opels we got were different models to Vauxhalls - when they integrated Vauxhall with Opel, they stopped selling Opel here although there was a slight overlap period when the Ascona was sold here alongside the Cavalier mk1.

When I was at school in the late 1980s/early 90s, I went on a field trip to the Luton car plant, where we saw both Vauxhall Cavaliers and Opel Asconas (?), essentially identical cars, being assembled.

I occasionally saw the odd Opel on the road in the UK, but then I've lived nearer to that plant so maybe more were sold (this was also before EU immigration levels rose as well when it could've just been cars sold over the water and driven here when its owner moved here). I even remember one of my primary school teachers (late 70s) owning an Opel Ascona.

PSA/Fiat Chrysler merger - Metropolis.
I have seen a few Vauxhalls, usually Insignias, where the vauxhall badge has fallen off the grille and you can see a black Opel emblem underneath.

On the topic of PSA/FCA merger, i just hope they do platform sharing the correct way around. Let the Italians design the bodywork, the Americans the engines, and the French (i’m not sure what they contribute other than state backed funds?) instead of the other way around as with current Chrysler group models with fiat multi air engines and VM v6 diesels which are falling apart in the USA. Let’s hope we don’t get Chrysler proprietary t/c automatics, they just never seem able to make them last. The FCA merger did save Chrysler, but not their reputation for unreliability.

PSA/Fiat Chrysler merger - Zippy123

I recall our local dealer in the very early '80s had two showrooms next to each other, one was Vauxhall and one was Opel.

The cars were very similar, there were Chevettes, Astras, Cavaliers etc and the equivalent Opel models, usually at a price premium. There was a very sleek Opel Manta that I thought was "ace" at the time.

There are quite a number of Opels still around:

https://www.howmanyleft.co.uk/?utf8=%E2%9C%93&q=opel

PSA/Fiat Chrysler merger - Xileno

"I think that Skoda should’ve remained a true budget brand based on older VW designs instead they’re now over complex and premium priced at the top end."

A very valid point. I guess one could say every Skoda sold is a VW unsold.

I think Renault have been very clever at keeping Dacia sufficiently distanced from Renaults, they appeal to different buyers so the brands are not competing with each other so much.