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Old 31st January 2012, 12:24   #16
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Default re: ET : Peugeot shuts down Mumbai office. EDIT : Moving to Ahmedabad

I am betting that they will share capacity in Fiats factory or do a JV with Mitsubishi. The dealer network will be separate though
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Old 31st January 2012, 12:32   #17
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Default re: ET : Peugeot shuts down Mumbai office. EDIT : Moving to Ahmedabad

I would suspect that Peugot isn't exiting India. To quote from its Press release, "The group is currently evaluating the scheduling of the project, which may lead to some adjustments to the schedule as it currently stands". To me this is a classic case of living beyond means. After committing $900m Peugot suddenly realises the risk reward having looked at the fate of its competitor Renault. Could this lead to another JV?
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Old 31st January 2012, 13:01   #18
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Default re: ET : Peugeot shuts down Mumbai office. EDIT : Moving to Ahmedabad

Just seen their MH 46 registered, sky blue 208, outside the Macdonalds at Panvel just before the start of the MUM_PUNE, heading to the expressway, as i frequent this route and have seen their black Sedan (MH46 registered) several times making a pit stop here at Panvel and heading onwards to Pune for their Testing purposes.

Seriously, doubt the news, they maybe doing some financial evaluation on the viability of the project, but withdrawing entirely is surprising..IMO
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Old 31st January 2012, 13:05   #19
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Default re: ET : Peugeot shuts down Mumbai office. EDIT : Moving to Ahmedabad

Peugeot is amongst the most reluctant car companies I have seen - along with Mitsubishi, towards the Indian market. They should strongly formulate - clearly, their future consolidation plans before they put one step forward.
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Old 31st January 2012, 14:44   #20
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Default re: ET : Peugeot shuts down Mumbai office. EDIT : Moving to Ahmedabad

I'm guessing they are close to agreeing to a partnership with FIAT and hence will make use of FIAT's current manufacturing facilities. Hope it is true and this way they setup their own dealer network.
Wish they would launch the 308 in India
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Old 31st January 2012, 15:39   #21
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Default re: ET : Peugeot shuts down Mumbai office. EDIT : Moving to Ahmedabad

Quote:
Originally Posted by iliketurtles View Post
Just writing Peugeot off is wrong. Yes, they mucked up. Badly. But they still deserve a chance
This was their second chance. And they still show a half hearted attitude towards Indian market IMO. Let's wait and watch.
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Originally Posted by ajmat View Post
I am betting that they will share capacity in Fiats factory or do a JV with Mitsubishi. The dealer network will be separate though
Would TATA agree to another JV with Peugeot - FIAT?
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Old 31st January 2012, 15:42   #22
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Default re: ET : Peugeot shuts down Mumbai office. EDIT : Moving to Ahmedabad

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Originally Posted by CrAzY dRiVeR View Post
This was their second chance. And they still show a half hearted attitude towards Indian market IMO. Let's wait and watch.

Would TATA agree to another JV with Peugeot - FIAT?
They probably would like to get out of any obligation to Fiat beyond engines
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Old 31st January 2012, 15:43   #23
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Default re: ET : Peugeot shuts down Mumbai office. EDIT : Moving to Ahmedabad

It were better if they had stuck to their guns and not created this type of adverse publicity for themselves causing everyone to question their very committment etc.

Much better if they had simply kept quiet and delayed their business plans and launches without having to go through all this rigmarole and speculation etc.

A JV with either FIAT or Mitsubishi is in my opinion, a complete waste of time - those two brands can barely manage to survive and look after themselves. Peugeot will be shooting themselves in the foot if they go that route.
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Old 31st January 2012, 15:56   #24
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Default re: ET : Peugeot shuts down Mumbai office. EDIT : Moving to Ahmedabad

Lets not jump the gun here. It doesn't look like they are pulling out, for now. It is just a re-evaluation.

With the European economy facing tough times ahead, it is natural for a company to reconsider their spending plans. When the economic environment changes, earlier assumptions no longer hold good and they have to adapt.

Yes, India is an upcoming market and they should have a presence here. But, you are just spending money (without earning anything) in the initial years (while you put the entire factory & supply-chain in place). Looks like they are getting into the "conserve cash" mode.

I suspect they would probably delay the factory timeline by some time (say, a year), bring upper segment models like the 508 as CBUs (especially witht he EU-India FTA around the corner) and setup only a few dealerships in the metros.
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Old 31st January 2012, 16:04   #25
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Default re: ET : Peugeot shuts down Mumbai office. EDIT : Moving to Ahmedabad

Quote from Bloomberg "Peugeot shifting India office from Mumbai to Ahmedabad. India is a key strategic market for the group. Time lines are adjusted but intent is clear."


JV is looking more and more obvious
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Old 31st January 2012, 16:07   #26
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Default re: ET : Peugeot shuts down Mumbai office. EDIT : Moving to Ahmedabad

Quote:
Peugeot have caused a major shock by withdrawing from all endurance racing with immediate effect.
The news will also serve as a major blow to the FIA's new World Endurance Championship that is due to make a return this year.
Peugeot pull out of endurance racing | Mail Online

Not everything is hunky and dory in Europe currently. The financial difficulties is causing everybody to have a relook at their books.

Regarding the alliance with Fiat , its something I think both Fiat and Peugeot are working globally. They want to form an alliance to beat the market leader in Europe.

Fiat to talk to Peugeot on alliance - paper | Reuters

Quote:
Italian automaker Fiat will talk with France's PSA Peugeot Citroen about an alliance as it moves to reach its target of selling 6 million vehicles in 2014, Italian newspaper Corriere della Sera said on Tuesday.
Peugeot is ready to negotiate an alliance with the Fiat-Chrysler group, Corriere said, citing well-placed sources.
Peugeot and Fiat declined to comment.
On Monday Fiat and Chrysler CEO Sergio Marchionne said the group is open to seeking a third partner to reach the 2014 sales target.

Fiat, Peugeot may need tie-up to compete with Germans | Reuters

Quote:
Having long resisted the overtures of rival Fiat (FIA.MI), PSA Peugeot Citroen (PEUP.PA) may decide that an alliance, fraught with difficulties though it may be, is the only way to close the widening gap with European market leader Volkswagen

Last edited by MCR : 31st January 2012 at 16:09. Reason: Typo
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Old 31st January 2012, 16:30   #27
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Default re: ET : Peugeot shuts down Mumbai office. EDIT : Moving to Ahmedabad

Quote:
Originally Posted by MCR View Post
Regarding the alliance with Fiat , its something I think both Fiat and Peugeot are working globally. They want to form an alliance to beat the market leader in Europe.

Fiat to talk to Peugeot on alliance - paper | Reuters




Fiat, Peugeot may need tie-up to compete with Germans | Reuters
The Peugeot-Fiat partnership is limited to LCVs, i think (vans mostly). This is also under reconsideration as Fiat (apparently) intends to withdraw from the JV. (Source)
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Old 31st January 2012, 19:24   #28
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Default re: ET : Peugeot shuts down Mumbai office. EDIT : Moving to Ahmedabad

Quote:
Originally Posted by ajmat View Post
I am betting that they will share capacity in Fiats factory or do a JV with Mitsubishi. The dealer network will be separate though
I think internationally Peugeot-Citroen already have some alliance in place with Mitsubishi. I remember reading that one of their crossover/SUV is based on the Outlander or ASX.
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Old 31st January 2012, 21:49   #29
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Default re: ET : Peugeot shuts down Mumbai office. EDIT : Moving to Ahmedabad

What if this is just a rumor, conjuncture from ET? That is very likely, and if it is indeed not true, this will be a big loss of faith for Peugeot in India. The customer's confidence in the brand will reduce significantly and may result in uphill task selling cars with such an image. They should clear the air as soon as possible. Cars is not a disposable commodity.
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Old 31st January 2012, 21:55   #30
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Default re: ET : Peugeot shuts down Mumbai office. EDIT : Moving to Ahmedabad

In my opinion, Peugeot should get rid of its reluctance towards the Indian market first. They left bad memories in the minds of thousands of customers who plonked their hard-earned money on the 309 model during their first stint. As if that was not enough, they are now re-evaluating the market conditions and rescheduling the project. I mean, if they are serious about the market, nothing should deter them from going ahead with the investment. After all, Indian market is only going to grow unlike European and American markets which have almost saturated. Though I would be happy if they enter our market with a JV (probably with a company which has adequate spare capacity like 'Fiat'), shutting down their Mumbai office could be a serious indication of things to come. I hope Peugeot does not mess up their re-entry in our market.

Having seen the 508 sedan in flesh, I can't help but agree with many others in the forum. It would be a pity if we don't get to see this beautiful sedan on our roads.
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