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|7th May 2010, 14:24||#1|
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Peugeot talking to Mitsubishi for India entry. Could they be heading to Chennai too?
Peugeots India Expansion Halted for Mitsubishi Talks (Update1) - BusinessWeek
Peugot earlier had plans of setting up a 1000 Acre facility near Shamshabad Airport in Hyderabad. However, they are in talks for a tie up with Mitsubishi and as a result have shelved plans of the Hyderabad plant.
As Peugeot manufacturing chief Guillaume Faury said to Businessweek: “There was a project looking at Indian opportunities and whether we should invest, but there was no formal decision, To what extent we’re with Mitsubishi in the future will determine whether we want to go in alone or with a partner.”
As we all know, mitsubishi has a plant at Tiruvallur which is near Chennai. What the future of that plant will be if Hindustan Motors goes to BIFR is unknown. But if HM decides to sell that plant off to the Mistubishi Peugot JV , it could mean a + 1 for the list of big auto manufacturers in Chennai.
Last edited by acidkill : 7th May 2010 at 14:29.
|7th May 2010, 15:42||#3|
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@greenhorn - I bet you haven't gone through the most recent financials of both these companies. Peugeot-Citroen are doing pretty well now and a few new launches by both Citroen and Peugeot should add to sales.
Regarding the blind leading blind thing. Well the above lines and a look at financial figures of these companies will prove that none of these two is blind even if not an eagle.
Both the companies have been working closely with each other for quite some time now and 2012 should be the year when their joint efforts start paying off. Joint working on parts procurement and management of supply chain would add to profits. The future for both companies seems quite good in the medium and long-term if not short-term.
While both companies may not have the best financials in the automotive industry they surely have recovered from red to black and their forecasts and analyst predictions also suggest an upwards inclining worm for financial figures. Product-mix is also balanced for these companies and by 2012-13 the balance should improve even further.
Aso, considering the fact that both plan to only expand and know the importance of India as a market for driving future volumes this agreement shouldn't come as a surprise when both of them are already doing this in other parts of world and saving money.
Last edited by lifeonwheels : 7th May 2010 at 15:44.
|7th May 2010, 15:55||#4|
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Plus just to let people know Mitsubishi as an Organisation is quite big- Refer Mitsubishi website for details- they also own UFJ Bank of Tokyo -one who purchased part of Lehman Brothers- it is in fact Mitsubishi UFJ Bank of Tokyo,Further to this we all know Mitsubishi presence in Electronics & not to forget all the manufacturer use Mitsubishi Glass- in India as well - known as ASAHI GLASS-
I agree that every arm of a bigger company needs to be independent but at the same time finances can be arranged from one another as it is also a part of bigger company if required- Mitsubishi already offered 300cr for HM plant but they demanded more so let's see what role Peugeot plays.
Last edited by anupam00 : 7th May 2010 at 15:57. Reason: updated
|7th May 2010, 16:06||#5|
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This is would be an interesting combination and I would like to see whether they market jointly or two brands from a JV with integrated sALES/ Support Network.
Btw Peugeot makes one of the best diesels .
|7th May 2010, 16:10||#6|
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By 'failed manufacturer', greenhorn is probably talking about their past Indian (mis)adventurers - especially Peugeot.
Doesn't Peugeot have a few court cases pending against them by 309 customers for leaving them high & dry?
Last edited by smartcat : 7th May 2010 at 16:12.
|7th May 2010, 16:23||#7|
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|7th May 2010, 21:51||#8|
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I guess mitsu should stay away from any JV or partnership and focus on establishing itself alone in the Indian market place.
But if they decide to create a common production line,it would actually benefit both because you get the scale of production and cost efficiency from start,similiar to what nissan-renault are doing.
|8th May 2010, 15:30||#9|
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To add to that, how many divorces has Peugeot had again? Reason I ask is, they sure need some training on choosing the right partners for India. First PAL, now Mitsubishi! If Peugeot does have any more desi aspirations, they need to sail to India alone.
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