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Another beautiful wagon, but unlikely to reach our shore... 308 SW GT For petrol, 3-cylinder engines with a capacity of 1.2 litres: PureTech 110 S&S BVM6, PureTech 130 S&S BVM6, PureTech 130 S&S EAT8. 308 SW Hybrid 2 rechargeable hybrids HYBRID 225 e-EAT8 HYBRID 180 e-EAT8)

Finally a new flagship by Citroën worth looking forward to? The new shape somewhat reminds me of unconventional looking Renault Vel Satis... Approximately three years ago, Citroen said the successor of the C5 will have an unconventional shape and will basically “reinvent” the traditional sedan. At the time, the automaker didn’t share much but said the production model will draw inspiration from the fabulous Cxperience Concept. Today, finally, we can share the first spy photos of the next-generation C5, showing what Citroen had in mind. From the spyshots, Citroen is keeping its promise and the new C5 will have a very unique shape. It’s not exactly a station wagon, and it’s not exactly a hatchback. It’s definitely not a sedan, too. The mix between different body styles gives the new C5 a prominent profile and the first impressions are for a large and comfortable car. It’s worth noting that there seems to be a strong visual connection between the production model and the concept from 2016. This holds true especially at the back where the taillights appear to have a very similar shape. It’ll be very interesting to see whether that fat D-pillar has a large window like on the Cxperience Concept.

4th largest automotive group in the making... Fiat Chrysler and Peugeot reach deal to merge DETROIT – From Daimler-Chrysler to Fiat Chrysler, the former American automaker Chrysler Corp. has gallivanted around the world to find partners to assist in its growth or help keep it afloat. It now has its sights set on Peugeot maker PSA Group. Both the French carmaker and Fiat Chrysler on Wednesday confirmed they are in talks to create the world’s fourth-largest automaker with a roughly $50 billion valuation. The PSA board approved the merger and the Fiat Chrysler board is set to meet Wednesday, a person familiar with the deal told CNBC. Executives have briefed regulators in the U.S. and France, the Wall Street Journal reported, citing unnamed sources. Peugeot CEO Carlos Tavares is expected to lead the combined automaker as its CEO, while John Elkann, Fiat Chrysler chairman and heir of the Agnelli family dynasty that founded Fiat, would continue his role with the combined company, the WSJ reported. The deal gives Peugeot six board seats and Fiat Chrysler five, according to the WSJ. “We will not comment beyond the press release issued this morning,” PSA Spokesman Pierre-Olivier Salmon said in an email, citing a press release issued earlier in the day that confirmed the two companies were holding “ongoing discussions aiming at creating one of the world’s leading automotive groups.” Fiat Chrysler spokesman Niel Golightly said he had “nothing to add at this time.” Reports of the talks, including a potential “all-share merger of equals,” as the Wall Street Journal first reported, sent shares of Fiat Chrysler surging as much as 8% on Tuesday. The stock rose by less than 2% in midday trading Wednesday. The confirmation of the talks comes about five months after Fiat Chrysler ended merger discussions with PSA’s French rival, Renault. Fiat Chrysler, the world’s seventh-largest automaker, has been on a quest for a tie-up to grow scale and consolidate costs for several years. ‘Litany of obstacles’ Even if the deal wins approval from both boards, it faces a lot of obstacles. Challenges include consolidation, clashing corporate cultures and government and regulatory approval, among other issues. Talks of a potential tie-up between Fiat Chrysler and Renault ended earlier this year largely due to the French government, which owns a roughly 12.2% stake in Renault. The French government currently owns a 13.7% stake in PSA. Bank of America Merrill Lynch analyst John Murphy cited the French government’s ownership as one of a “litany of obstacles” facing such a deal. Murphy said similar to Fiat Chrysler’s potential tie-up with Renault, the “industrial logic” is “unclear unless there is massive headcount reduction.” Such a deal, according to Murphy, also could alienate U.S. buyers, lowering the potential benefit of the two automakers combining. Even if the merger is approved by shareholders and regulators, “there is a material risk American consumers may shift to Ford and GM products due to FCA possibly no longer being perceived as an ‘American’ identity, not to mention the potential political implications of this potential deal.” Bernstein analyst Max Warburton said a merger between Fiat Chrysler and Peugeot “has more logic” than one with Renault. He specifically cites the potential for Tavares to create “long-term value.” “We ultimately think a deal could be made to work — this would be as much about raising performance as it would be about synergies,” he wrote in a Tuesday note to investors. However, Warburton noted a deal between the two does little to increase business in China, the world’s largest auto market, and the timing is “sub-optimal” given FCA’s earnings are at all-time high. Rewards Analysts see the merger as a quick way for Peugeot to re-enter the U.S. market after a decades-long hiatus, while continuing to grow its European operations following the company’s acquisition of GM’s European business in 2017. “This news is not unexpected, given that both companies have been actively exploring tie-ups with others to yield cost savings and other synergistic benefits,” said David Leggett, automotive editor at data analytics firm GlobalData. For Fiat Chrysler, it would finally cement former CEO Sergio Marchionne’s vision of creating a global automaker with the resources to successfully compete in the ever-changing auto industry. In 2015, Marchionne, who unexpectedly died in July 2018, called for industry consolidation in a presentation called “Confessions of a Capital Junkie.” Consolidation would save capital that was being wasted by automakers developing redundant technologies, he said. “These were not hallucinations of somebody looking to grandstand in the industry,” Marchionne said at the time. “We have spent a lot of time trying to understand what makes this machine tick. And the machine can tick a lot better if certain things happened.” Marchionne believed only a handful of the world’s largest automakers would survive and have the capital to compete as automakers push for autonomous and all-electric vehicles. The deal with PSA would give Fiat Chrysler access to PSA’s newer vehicle platforms in Europe as well as emerging technologies. Marchionne’s methodical combination of Fiat and Chrysler a decade ago is considered one of the more successful tie-ups for the auto industry in the recent years. Chrysler’s previous “merger of equals” with German automaker Daimler-Benz in 1998 was a culture clash and failure that led to a divorce less than a decade later, followed by Chrysler spiraling into bankruptcy in 2009.

A report from The Financial Times predicts that China will build more passenger cars and light commercial vehicles than Europe for the first time ever in 2013. This should not come as a surprise as European car makers such as Opel, Ford of Europe and PSA Peugeot Citroen have announced plans to cut production this year. Analysts expect China to produce a total of 19.6 million cars this year versus 18.3 million units in Europe. In 2012, China and Europe rolled out 17.8 million and 18.9 million cars respectively. However, all is not lost for Europe as its sluggish economy is showing signs of recovery. The PMI index for the 17-member Eurozone hit a nine-month high in December 2012 although the reading of 47.2 reflected an 11th month of contraction. But, if The Financial Times' estimates were accurate, about 23.8% of vehicles sold this year will be produced in China which is almost ten times higher than in year 2000. Taking into account Europe

If you think that the global economy is on its way to recovery, think again. Cumulative car sales in the European Union (EU) from January to November 2012 have fallen to a 19-year low. It dropped 7.2 percent to 11.7 million units, the lowest figure since 1993. The decline was propelled by a 10 percent plunge in November. The European Automobile Manufacturers' Association expects a full-year market contraction to about 12 million cars, the fewest cars sold in Europe since 1995. Below are the November statistics of some of the affected car makers: Brand Renault: -27.4 percent PSA Peugeot Citroen: -16 percent GM (Opel, Vauxhall, Chevrolet): -13 percent Ford: -10.2 percent VW: -2.5 percent However, BMW and Mercedes managed to buck the market trend and recorded sales growth of 0.4 percent and 1.5 percent for November respectively. Perhaps, workers in Fiat and Peugeot should start looking for job opportunities with the two German car makers as their companies have announced plans to cut 1,500 jobs each.

GM Vice Chairman Stephen Grisky says that Opel is not for sale. "Opel is not for sale. GM fully stands behind Opel," said Mr Girsky in a statement recently. "Opel is a fully integrated part of GM's global footprint and vital for GM's future success in Europe. The GM-PSA alliance is fully on track." The statement comes after an Italian newspaper implied Fiat was ready to buy the loss-making brand should the alliance between GM and PSA/Peugeot Citroen fail. The publication reported that Fiat CEO Sergio Marchionne is already preparing a proposal to acquire the European brand in the event that GM decides to pull out of the alliance. The first time Fiat was trying to buy over Opel was in 2009 when the company was briefly in the red. Car makers are currently going through a deplorable phase as they struggle to control increasing losses in Europe after 11 consecutive months of declining sales. GM is one of the companies that were badly hit as it lost almost US$16 billion in its European operations over the last 12 years. The GM-PSA alliance allows both the manufacturers to share vehicle platforms, components and modules. In addition, the creation of a global purchasing joint venture enables both entities to enjoy greater economy of scales when sourcing for materials. I believe Opel has a future as it has plans to revamp its engine line up over the next 12 months. The new 1.6-litre SIDI (spark ignition direct injection) ECOTEC engine has been introduced recently and production will start in late 2012. Opel, hang in there!

[extract] The Eurozone debt crisis seemed to have taken its toll on the sales of PSA Peugeot-Citroen. The Group

[extract] PSA Peugeot-Citroen (officially Peugeot S.A.) has succeeded in raising 1 billion Euros via rights issue to strengthen its planned collaboration with General Motors. Chief Executive, Philippe Varin, stated that the capital injection will enable them to finance investments associated with the projects at the