|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||16.18 - 16.65|
|52 Week Range||9.62 - 30.19|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||6.17|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Citroen's latest C4 model will go on sale in the fourth quarter of this year, with the French carmaker aiming to expand in the compact car market, the head of PSA-owned Citroen told Reuters on Tuesday. "Citroen is coming back in full force on the compact car segment in Europe which is the biggest segment if you count SUVs and sedans," he said in a phone interview.
General Motors Co on Friday asked a U.S. appeals court to allow it to continue pursuing its civil racketeering suit against rival Fiat Chrysler Automobiles NV , rejecting a lower court judge's belittling of the complaint. The automaker's filing with the Sixth Circuit Court of Appeals comes less than a week after U.S. District Court Judge Paul Borman called GM's suit against Fiat Chrysler a "waste of time and resources" at a time when both automakers should be focused on surviving the coronavirus pandemic. Borman ordered GM Chief Executive Mary Barra and Fiat Chrysler CEO Mike Manley to meet by July 1 to negotiate a resolution.
The COVID-19 crisis has not delayed plans to finalise a merger between Fiat Chrysler and Peugeot maker PSA to create the world's fourth largest carmaker by the first quarter of next year, FCA's Chairman John Elkann said on Friday. "The Covid-19 crisis has further underlined the compelling logic of this merger," he added.
Italy is close to unveiling the approval of guarantees for a 6.3 billion euro ($7 billion) financing of Fiat Chrysler (FCA), two sources familiar with the matter said, paving the way for the largest crisis loan for a European carmaker. FCA's Italian division has tapped Rome's COVID-19 emergency financing schemes to secure a state-backed, three-year facility to support the group's operations in the country as well as Italy's car sector, in which about 10,000 businesses operate. The loan would be disbursed by Italy's biggest retail bank Intesa Sanpaolo, which has already authorised it pending the approval of guarantees the government will provide on 80% of the sum through export credit agency SACE.
Moody's Investors Service, ("Moody's") has today downgraded the corporate family rating (CFR) and senior unsecured ratings of Faurecia to Ba2 from Ba1. Concurrently, Moody's has downgraded probability of default rating (PDR) to Ba2-PD, from Ba1-PD.
European competition regulators are worried that Fiat Chrysler and Peugeot maker PSA's proposed merger may harm competition in small vans. With a total of 755,000 vans sold last year in Europe, the combined Fiat Chrysler (FCA) and PSA would get a market share of around 34%, based on industry data, more than double that of Renault and Ford, with shares around 16% each. "Commercial vans are important for individuals, SMEs and large companies when it comes to delivering goods or providing services to customers," European Union competition chief Margrethe Vestager said in a statement, announcing an in-depth investigation into the proposed merger.
Moody's Investors Service has confirmed the A2 issuer rating of Dongfeng Motor Group Company Limited (Dongfeng, A2 stable). At the same time, Moody's has also confirmed the A2 rating on the senior unsecured bonds issued by Dongfeng Motor (Hong Kong) International Co., Limited -- an indirect wholly-owned subsidiary of Dongfeng.
The following are the top stories on the business pages of British newspapers. - The administrator of Neil Woodford's failed investment fund has been accused of delivering "a slap in the face" to investors with its recent 224-million-pound ($281.32 million) deal to sell a host of the fallen stock-picker's biotechnology stakes. Reliantco Investments, a Cypriot trading firm promoted by the former rugby player Mike Tindall, has pulled out of Britain amid scrutiny of overseas investment schemes.
European shares moved further away from their three-month peak on Thursday after a downbeat economic outlook from the U.S. Federal Reserve and on worries of a second wave of COVID-19 cases. The pan-European STOXX 600 fell 2.6%, its fourth straight day of decline, with travel and leisure stocks, banks and automakers losing between 4.5% and 5%. A strong rally in global stocks halted this week, with markets taking another leg lower on Thursday after the Fed warned of a long road to recovery, while projecting the U.S. economy to shrink 6.5% in 2020 and the unemployment rate to be 9.3% at the year's end.
Germany unveiled sweeping incentives for cheap electric cars and for hybrid vehicles, providing a boost to Volkswagen's electric push while staggered taxes for polluting combustion-engined cars will penalise sports utility vehicles. Buyer incentives for passenger cars, including a lowering of value added tax to 16% from 19% were included as part of a 130 billion euro ($145.74 billion) stimulus package to speed up Germany's recovery from the coronavirus. In addition to a staggered tax on vehicles emitting large amounts of carbon dioxide (CO2), hitting sports utility vehicles, Germany included a 6,000 euro incentive for battery electric cars costing below 40,000 euros.
New car registrations in Italy fell for the fifth straight month in May, down 49.61% from the previous year, the transport ministry said on Monday. The Italian government imposed a nationwide lockdown in early March to contain the spread of the new coronavirus and started to gradually ease the restrictions on movement and business only in mid-May.
Moody's Investors Service, ("Moody's") confirmed Peugeot S.A.'s (PSA) Baa3 issuer rating; the outlook changed to negative from ratings under review. A full list of affected ratings can be found at the end of this press release. PSA's Baa3 rating reflects Moody's view that the company's strong liquidity position affords it the capacity to fund sizable cash requirements that might arise under a potentially extended downturn in the global automotive market as a result of the coronavirus pandemic.
Moody's Investors Service, ("Moody's") has today confirmed Fiat Chrysler Automobiles N.V.'s (FCA) Ba1 corporate family rating (CFR), Ba1-PD Probability of default rating as well as its Ba2 instrument ratings. The outlook on all ratings changed to developing from ratings under review.
A cluster of big name hedge funds have started betting against French companies, moving in after the lifting of a short-selling ban imposed earlier this year to calm financial markets, an analysis of regulatory filings showed. France joined Italy, Spain, Belgium, Austria and Greece in dropping short-selling bans last week. Hedge funds engage in so-called "short-selling" by borrowing a stock from an institutional investor, such as a pension fund, and selling it back when the shares fall, pocketing the profit.
French government measures to prop up the economy through the coronavirus crisis have cost 450 billion euros ($490 billion), the equivalent of 20% of GDP, the finance minister said on Monday. Since mid March, the government has mobilised a package of measures including state-subsidised furloughs, state-guaranteed loans, tax deferrals and handouts to small firms. "If we take everything that has been done with the budget and in support of businesses' cashflows, it's 450 billion euros, 20% of the nation's wealth on the table," Finance Minister Bruno Le Maire said on BFM TV.
Jerry Bill is worried the novel coronavirus could hurt business at the Des Moines auto dealership he runs, but not because of a shortage of buyers for the big Ram pickups on his lot. "Our biggest issue will be if we don't get more inventory," said Bill, general sales manager of Stew Hansen Chrysler Dodge Jeep Ram, which sells around 2,700 new vehicles a year in Urbandale, a suburb of Iowa's capital Des Moines. After a drop in sales in April when consumers stayed home, Bill expects pickup truck sales to end May similar to where they were a year earlier.
(Bloomberg Opinion) -- John Elkann, scion of the billionaire Agnelli clan, isn’t having an easy Covid-19 crisis. His $9 billion sale of the PartnerRE reinsurance business collapsed last week after the family’s holding company, Exor NV, refused to lower its asking price price. Then Fiat Chrysler Automobiles NV said it would scrap a proposed dividend for 2019, denying Exor another 315 million euros ($341 million) in change.And things could get worse. The terms of Fiat’s proposed merger with France’s Peugeot SA, negotiated before the coronavirus pandemic, require the Italian carmaker to pay its shareholders — the largest of whom are the Agnellis — a 5.5 billion-euro special dividend before the deal closes.The size of that payment always looked questionable, given that Fiat’s balance sheet is inferior to Peugeot’s. The Covid-19 outbreak makes it unconscionable. Having halted production, both companies are burning through cash and Fiat has had to ask Italy to guarantee a 6.3 billion-euro three-year loan to support its domestic suppliers. Surely the first priority here should be making sure the new company has strong enough finances as the economy starts to reopen.The politics of Fiat asking for help from Rome is especially awkward after the carmaker moved its tax residency to the U.K. in 2014, and its legal headquarters to the Netherlands. Last year, Italy’s competition watchdog said that the country’s tax revenues had suffered significantly as a result.Paying a fat dividend to the Agnellis and other shareholders after leaning on taxpayers probably wouldn’t go down very well with the public — as Germany’s BMW AG and other recent dividend payers have discovered. If Elkann still wants his sweetener, the two parties will need to find a way that doesn’t bleed the new merged entity of cash.Right now, money is flowing rapidly out of both companies. For the most part that’s because suppliers still need paying, even though the companies aren’t selling many cars. I’ve written before about companies suffering from these so-called negative working-capital problems.Fiat ate through 5 billion euros of cash in the first three months of 2020 and it could consume twice that in the second quarter, according to Jefferies analyst Philippe Houchois. He expects Peugeot to burn through about 8 billion euros of cash in the first half of the year.Neither company is in danger of running out of money, and those working capital-related outflows should reverse once the carmakers start producing and selling cars again. Even so, one lesson of Covid-19 is that companies need larger cash cushions. Until there’s a vaccine, there’s a risk that a second virus wave would trigger yet more industrial disruption.There’s no great urgency for Fiat and Peugeot to alter the terms of their union as the deal isn’t expected to close until early next year. The rationale for joining forces remains intact; the cost savings from working together look even more important now. But they should be thinking of ways to make the future company resilient.Structured as a 50-50 merger, Peugeot ended up paying a premium for boardroom control, as well as for the Italian company’s lucrative U.S. truck business — even though Peugeot shares had been valued more highly by the market. Some of the arguments for paying Fiat a sweetener remain valid: Peugeot’s reliance on the struggling European car market isn’t looking too attractive right now. But there are other ways to compensate Fiat shareholders. For example, Peugeot is due to spin off its 46% stake in parts supplier Faurecia SE to its shareholders as part of the original merger terms. This could be retained instead by the combined business.Without their Fiat dividends, the Agnellis will have less money to reinvest in new ventures. Right now, though, the car industry’s need is greater.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Fiat Chrysler's decision to scrap its dividend marks another setback for plans by the Agnelli family's Exor arm to raise cash after a $9 billion sale of its reinsurer unit PartnerRe collapsed this week. Fiat Chrysler (FCA) and French Peugeot owner PSA, which have agreed a tie-up to create the world's fourth largest carmaker, said late on Wednesday they were both withdrawing their annual dividend. Exor, led by Agnelli scion John Elkann and FCA's controlling shareholder with a 28.9% stake, will miss out on around 320 million euros in cash at a time when two deals to reshape its portfolio of businesses have either been scrapped or delayed.
Fiat Chrysler (FCA) and PSA, which have entered into a binding merger agreement to create the world's fourth largest carmaker, said in a joint statement on Wednesday that the decision was due to the impact of the COVID-19 pandemic. A 1.1 billion euro ($1.19 billion) ordinary dividend for both FCA and PSA was announced in December as part of the binding tie-up agreement between the two automakers. FCA and PSA said on Wednesday that preparations for their planned 50-50 merger were "advancing well", including with respect to antitrust and other regulatory filings.
China's Wuhan city is considering steps to support its biggest local automaker Dongfeng Motor Corp, according to a draft policy document reviewed by Reuters, as the epicentre of China's novel coronavirus outbreak tries to revive its economy. The potential measures include subsidies for new car buyers, new government orders for Dongfeng vehicles and a plan to make use of idled plants from Dongfeng's venture with Renault, according to the policy draft by the Wuhan Economic and Technological Development Zone, a part of the city government. The proposal, dated April 28, underlines how far Wuhan is willing to go to help support Dongfeng, China's third-biggest state-owned car maker, a major employer and a banner name crucial to the city's reputation as one a major auto town.
French Finance Minister Bruno Le Maire said on Monday that he would hold new meetings this week with representatives of the country's automotive industry, which has been hit hard by the impact of the coronavirus. Le Maire also told BFM Business radio that he regretted a decision by the CGT trade union to prevent a reopening of a Renault plant at Sandouville, just as the French government tries to get the country back to work as lockdown measures start to ease.
Fiat Chrysler resumed van production on Monday at its Atessa plant in central Italy, a week before the country plans to start lifting a national lockdown put in place to limit the spread of the coronavirus. Italy has said it would allow factories and building sites to reopen from May 4 as it prepares a staged end to Europe's longest coronavirus lockdown. At the Atessa plant, all workers had their temperature tested at the entrance on Monday.
Volkswagen will restart production at its Wolfsburg factory in Germany on Monday, the latest of a fleet of European carmakers to take advantage of eased coronavirus lockdown rules to resume manufacturing. VW, the world's largest car manufacturer, is celebrating the reopening of its biggest plant, in Wolfsburg, by projecting a cartoon of a VW logo squashing coronaviruses. Encouraged by a fall in infection rates, Germany has allowed small retail stores to reopen, provided they adhere to strict distancing and hygiene rules.
Fiat Chrysler (FCA) aims to restart van production at its Atessa joint venture plant in central Italy at 70% of the normal rate, a union representative told Reuters on Thursday. FCA and unions said on Tuesday that the carmaker planned to reopen the plant, which is a venture with France's PSA Group , on April 27, a week before a national lockdown imposed by Rome was due to end. Luca Manzi, from the UILM union, said FCA had informed unions that it planned to restart the plant at around 70% of its capacity, though he could not say precisely how many people would be back to work on Monday.
The maker of Peugeot cars says it’s ready for a plunge in demand. PSA group says it has the funds to cope with a halving in auto industry sales this year. It's also sticking to profit margin targets. The news helped its shares buck a down day for stocks on Tuesday (April 21). Like rivals, the firm has shuttered plants as governments enforce lockdowns. With many dealerships also shut, sales have all but ground to a halt. PSA - which also makes Citroen, DS, Opel and Vauxhall vehicles - says 90% of staff are at least partially furloughed. But it aims to avoid taking any government-guaranteed loans. Any company that does take is likely to face pressure to scrap or trim dividends. And that could be contrary to the terms of PSA’s planned merger with Fiat-Chrysler. For the first quarter the French firm saw sales drop by over 15% to 16.3 billion dollars. Lockdowns only hit the last few weeks of the period though, meaning the next quarter could be worse. PSA says it now expects auto-sector sales to fall 25% in Europe this year.