When you think of the basic rules of business, it is a fact that businesses need to be realistic in their assumptions and action. If a business tends to be too optimistic, for instance, there is a high chance of it losing its way, considering how it will be prone to exuberant risk-taking. The management of a business, therefore, needs to put on a realistic lens, regardless of whether they are making a business decision or speaking of business related matters, in general.
The CEO of Peugeot, however, appears to be completely unaware of this basic quality of successful CEOs, owing to how he has been found to be a bit too optimistic in his latest remarks. The biggest shock came about in his statement about making the transition from diesel powered engines to the electric models. According to Jean-Philippe Imparato, the CEO of Peugeot, the company will make two versions of the same vehicle; one will be powered by diesel while the other will be electric. It would then be up to the customers to decide which model it is that they want, depending upon the relevant laws and preferences.
What he comfortably chose to ignore, however, was the cost that the company would have to bear in pulling off all of these shenanigans. The statement appears to be even more ridiculous when you consider how the European market for cars has been flattening over the past few years. Taking all of this into perspective, it appears to be nothing short of foolish for the CEO of Peugeot to expect such a strategy to work in the shrinking market. The basic purpose of a company is to make profits, but going by what the CEO wishes to do, Peugeot can expect to find itself running into a predicament soon enough!
PSA—A French automobile group—is looking forward to a merger with Opel.
General Motors is one of the largest automobile manufacturers on the globe, and PSA knows that better than anyone else. Recently, in the midst of February, it approached GM and underwent talks to merge activities of its infamous Peugeot with two GM brands.
The brand PSA is quite interested in the British Vauxhall and German Opel. For some reason, PSA backed off from revealing much about the talks held in the meeting. The French automaker has previously been linked to GM with mergers.
Although much hasn’t been unveiled yet, the talks have sure been confirmed. Several sources have affirmed that the automobile giants will unveil the outcome within a couple of days. If this happens, the auto geeks can expect a blend of great technology in the future Peugeot models.
Furthermore, an emerging market leader in the French automobile market will also be seen. However, the newly-formed manufacturer will still need to do a lot to acquire the major market share, currently owned by Volkswagen. This merger may also put a stop to the much-failed attempts of GM to place its feet in the European market.
The United Kingdom is not the only one that faced a setback with Brexit. Sales figures from the PSA Group show a drag-down effect due to the falling pound. With a 2.4% fall in Peugeot, 12% in DS, and 14% in Citroen, it has become a matter of great concern for the PSA Group.
PSA revealed the declined sales figures last week on 26th of October, 2016. It was a shocker for many as the group had, just about ten days earlier, made a statement about buying 30% stake in a French online retailer, Aramisauto.
The PSA Group also puts out their effort to target a staggering sales target of 800,000 to be reached within six years from now. Major investors have already started doubting the potential, keeping in view the unstable pound situation.
On the other hand, PSA’s head of used-cars division, Marc Lechantre, has shown great interest in tapping the used-car market, and thinks that it holds great potential.
The third quarter has been absolutely dreadful for the PSA Group. The Chief Monitory Officer, Clotilde Delbos, stated merely hours after the release of the figures that the 331 million pound fall was a ‘massive hit’.