PSA, Tata deny report on alliance talks

  1. Welcome to GM Inside News Forum – General discussion forum for GM

    Welcome to GM Inside News Forum - a website dedicated to all things GM.

    You are currently viewing our forum as a guest, which gives you limited access to view most discussions and access our other features. By joining our community, at no cost, you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is free, fast and simple, Join GM Inside News Forum today!
     
+ Reply to Thread
Results 1 to 5 of 5

Thread: PSA, Tata deny report on alliance talks

  1. #1
    GMI Staff Member Premium Member nadepalma's Avatar
    Join Date
    Jan 2003
    Location
    New Jersey
    Posts
    8,810
    Thanks
    40
    Thanked 228 Times in 134 Posts
    My Ride
    2007 Ford Fusion

    PSA, Tata deny report on alliance talks

    Tata denies report on alliance talks with PSA
    November 14, 2012

    BERLIN (Reuters) -- Indian automaker Tata Motors Ltd. denied a report on Wednesday that it is in talks to set up an alliance with money-losing PSA/Peugeot-Citroen.

    "That is absolutely incorrect," Tata spokesman Debasis Ray told Reuters.

    Citing unnamed company sources, Germany's Manager Magazin reported Wednesday that PSA CEO Philippe Varin is looking for an alternative should his company's planned alliance with General Motors and GM's European unit, Opel/Vauxhall, collapse.

    CONTINUE AT: http://europe.autonews.com/apps/pbcs...talks-with-psa
    Last edited by nadepalma; 11-17-2012 at 02:06 AM.
    "La vita è come un albero di Natale..c'è sempre qualcuno che ti rompe le palle!"

  2. Remove Advertisements
    GM Inside News
    Advertisements
     

  3. #2
    GMI Staff Member Premium Member nadepalma's Avatar
    Join Date
    Jan 2003
    Location
    New Jersey
    Posts
    8,810
    Thanks
    40
    Thanked 228 Times in 134 Posts
    My Ride
    2007 Ford Fusion

    Re: Tata denies report on alliance talks with PSA

    Interesting news. After reading earlier that Peugeot and Opel have halted tie-up talks it maybe that PSA has either decided to eventually kill their tie-up with GM or is anticipating that GM will kill the alliance (after French government interference) and are looking for their next partner.

    Of course, the even more interesting question is then why shouldn't the alliance continue. This quote makes me think that the French government has poisoned the well against the partnership:

    But two sources with direct knowledge of those discussions said they were broken off after Peugeot accepted a state guarantee for its lending arm last month and announced a further deterioration of its cash position.

    The automakers have agreed to a "pause" in early-stage talks on a Peugeot-Opel deal, said one of the sources. The government bailout is "sabotaging the plan", he added.

    "They now consider that any deeper tie-up is unlikely before 2014, when the market picks up," another source said.

    "The government bailout conditions rule out French job cuts, which means a deal can't happen any faster," he said. "It would be politically impossible to have all the cuts falling on the German side."
    So instead of helping the company recover and thrive (and do what everyone knows has to be done), the French government is "sabotaging" the talks to save French jobs --- with Tata waiting in the wings?
    Last edited by nadepalma; 11-16-2012 at 01:59 PM.
    "La vita è come un albero di Natale..c'è sempre qualcuno che ti rompe le palle!"

  4. #3
    3.0 Liter SIDI V6
    Join Date
    Jan 2005
    Location
    michigan
    Posts
    598
    Thanks
    87
    Thanked 17 Times in 12 Posts

    Re: Tata denies report on alliance talks with PSA

    I really cannot fault any government that tries to protect its industry that has a significant impact on welfare of large portion of its citizens and thereby the overall economic base of the country. They either give out doles to have people working or give out doles for people to not work.

  5. #4
    2.4 Liter SIDI ECOTEC
    Join Date
    Mar 2007
    Location
    SEVENOAKS KENT UK
    Posts
    204
    Thanks
    0
    Thanked 1 Time in 1 Post
    My Ride
    Vauxhall Astra H VXR

    Re: Tata denies report on alliance talks with PSA

    Quote Originally Posted by akbar View Post
    I really cannot fault any government that tries to protect its industry that has a significant impact on welfare of large portion of its citizens and thereby the overall economic base of the country. They either give out doles to have people working or give out doles for people to not work.
    I agree with your sentiment but PSA /Tata / GM / Ford and all are commercial operations and as such must operate under commercial rules of business. The government bailout of GM and Chrysler in the US did have the effect of pruning both companies and forcing them to take the "difficult" decisions in order to survive, on the face of it the French government are trying to offer support without any capacity "pruning" or other structural changes. PSA (and Renault) are in a death spin at the moment for sales and are possibly even more vulnerable than GM and Ford in Europe. I don't blame Tata for keeping well away from this.

  6. #5
    7.0 Liter LS7 V8 Premium Member
    Join Date
    Feb 2010
    Location
    Queensland, Australia
    Posts
    4,135
    Thanks
    163
    Thanked 469 Times in 318 Posts
    My Ride
    FG Falcon Utility

    Re: PSA, Tata deny report on alliance talks

    I'm sure that at the time GM would have denied that they had discussions with Ford regarding a "merger".

    Companies need to have back channels to explore possibilities and opportunities before they become public knowledge
    and when these approached don't pan out it's better to say that there are no plans for a merger or JV and move on

  7. Remove Advertisements
    GM Inside News
    Advertisements
     

Quick Reply Quick Reply

Register Now

Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.


Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Posting Permissions

  • You may not post new threads
  • You may post replies
  • You may not post attachments
  • You may not edit your posts
Powered by vBadvanced CMPS v4.1.2