|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||21.24 - 21.58|
|52 Week Range||17.17 - 27.06|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||6.28|
|Earnings Date||Feb 26, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||24.75|
Moody's Latin America Agente de Calificación de Riesgo S.A., ("Moody's") has assigned today a Caa1 global local currency senior debt rating and a Ba1.ar national scale local currency debt rating to PSA Finance Argentina Comp.Fin.S.A.'s (PSA Finance) 28th issuance of up to ARS 600 million, maturing in six months. The ratings on PSA Finance, including the bond being rated today, are under review for downgrade in line with the review of the Caa2 Argentine government bond rating. PSA Finance's Caa1 debt ratings incorporate the entity's caa2 standalone baseline credit assessment (BCA) and Moody's assumption of the high probability that the bank would receive financial support from its co-parent, France's Banque PSA Finance (A3 stable, BPF), in an event of stress.
The German government will temporarily take stakes in high-tech companies to stop them being sold to investors in non-EU countries, a proposal by the economy ministry that underscores the growing protectionist ...
French carmaker PSA plans to sign a $50 billion merger deal with Fiat Chrysler Automobiles (FCA) this year, a source with direct knowledge of PSA's thinking said on Friday, brushing off concerns over a shock lawsuit filed this week. FCA has already said the lawsuit brought against Fiat by General Motors Co on Wednesday was "meritless". The source, who spoke on condition of anonymity, said Peugeot-manufacturer PSA remained focused on the merger talks, and intended to sign a memorandum of understanding on the deal this December, as scheduled.
(Bloomberg Opinion) -- The racketeering lawsuit brought by General Motors Co. against cross-town rival Fiat Chrysler Automobiles NV is a legal bombshell for the U.S. car industry.GM’s broadside lays out in forensic detail how Fiat allegedly conspired over many years to funnel payments to United Auto Workers’ officials, corrupt the collective bargaining process on wages and thus secure a competitive advantage. In essence, it’s trying to rewrite the American auto industry’s past decade of history, which saw both GM and Chrysler bounce back dramatically from Chapter 11 bankruptcy.In GM’s telling, the merger of Italy’s Fiat with Michigan’s Chrysler and their subsequent renaissance under the leadership of Sergio Marchionne was built on corruption. It may have a hard time proving parts of its case, particularly its assertion that the goal of the alleged conspiracy was to weaken GM and force it into a merger with Fiat.The Italian company says the lawsuit is groundless, implying that any bribe-paying would have been a case of a few bad apples. This is an awkward defense, though: Federal prosecutors have accused Fiat managers of trying to keep union officials “fat, dumb and happy” and three of the company’s executives have pleaded guilty to various charges.Regardless of whether GM succeeds in extracting billions of dollars compensation from its rival, the lawsuit seems calculated to punish Fiat and destabilize its recovery. Fiat’s proposed merger with France’s Peugeot SA, a prospective labor deal with the UAW and the reputation of the deceased Marchionne are in the balance. Relations between the two carmakers and with America’s trade unions will never be the same again.GM’s lawsuit contains plenty of salacious claims, but this goes far beyond the accusations of fancy meals, trips and gifts to UAW officials to secure lower and more flexible labor costs. In GM’s allegations, the original sin goes all the way back to 2009 when the Italian company “managed to win the support of the U.S. government in obtaining operational control, for no cash, over an iconic U.S. auto company”.And GM leaves little doubt about where the buck stops for the alleged orgy of trade union bribery that ensued: former Fiat boss Marchionne. This is shocking because for many investors Marchionne was a hero who created huge value. Doubtless this grated with GM, whose own remarkable post-crisis recovery allowed it to fend off Fiat’s merger overtures.There are other things that cast a cloud over the Marchionne era. Last year the U.S. Securities and Exchange Commission found that during his tenure Fiat fraudulently misled investors about how many new vehicles it and its dealers sold each month. Furthermore, the U.S. brought criminal charges against Fiat this year related to alleged diesel emissions cheating between 2011 and 2017. The automaker agreed to pay $800 million in January to settle diesel lawsuits brought by states, car owners and the U.S. Department of Justice, which labelled it a “bad actor.”While Marchionne isn’t alive to defend himself, the mantle of savior of the auto industry has passed to Peugeot’s boss Carlos Tavares. He acquired GM’s Opel/Vauxhall European subsidiary in 2017 and turned it around in record time, an embarrassment for GM which achieved nothing but losses there. The GM lawsuit will be a big test for him, and may encourage him to rethink the terms of the Peugeot-Fiat merger, which clearly favor the Italian side.GM’s move also puts the screws on the UAW to bargain particularly hard with Fiat over a new labor deal. If the union fails to emerge with good terms from those talks, it will look beholden to a carmaker from whom former officials allegedly accepted bribes.These scorched-earth tactics could yet backfire for GM. The technological and regulatory upheaval that’s upended the auto industry probably needs cooperation, not feuds. GM has already secured a new labor deal with the UAW, but re-airing the union’s dirty linen won’t help its own employee relations, which have been scarred by 40 days of strikes this year.GM says the timing is coincidental but nothing about this lawsuit feels haphazard. It’s a precision-guided declaration of corporate war.To contact the author of this story: Chris Bryant at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis 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/opinion©2019 Bloomberg L.P.
TURIN/PARIS, Nov 21 (Reuters) - Fiat Chrysler Automobiles NV on Thursday brushed off a shock lawsuit from General Motors Co and said it was confident of reaching a binding merger deal with Peugeot owner PSA Group by the end of this year to create the world's fourth-largest carmaker. GM filed the lawsuit in the United States on Wednesday, alleging FCA had bribed United Auto Workers (UAW) union officials over years to corrupt the bargaining process and gain advantages, costing GM billions of dollars.
(Bloomberg Opinion) -- If you’ve dropped the kids off at school in London or the New York suburbs recently, the idea that Jaguar Land Rover Automotive Plc is struggling must seem far-fetched. The British carmaker’s Range Rover SUVs have become a common feature of the upper-middle class lifestyle. How else would one get to brunch and the gym?Yet a decade after India’s Tata Group acquired and dramatically reinvigorated these famous old brands, JLR is back on the ropes. The unit lost an eye-peeling 3.3 billion pounds ($4.2 billion) in the fiscal year to March and burned through 1.3 billion pounds of cash. No wonder Tata is casting around for help.JLR’s cost-base has become bloated, its sales in China have collapsed and its big bet on Jaguar saloon (sedan) models has failed to pay off. Selling SUVs to Brits and Americans has prevented its fall from being even more dramatic. However, new gasoline and diesel cars are going to be banned in the U.K. and elsewhere by 2040 and the climate crisis could trigger a backlash against gas-guzzlers well before then. Either way, refashioning the company for a zero-emissions future will be very expensive.Tata insists JLR is not for sale but that doesn’t mean it wants to continue this journey alone. The unit had about 2.2 billion pounds of net debt at the end of September.The Indian parent has approached fellow automakers including China’s Zhejiang Geely Holding Group Co. and Germany’s BMW AG, about forging partnerships to help JLR save money, Bloomberg reported this week. These would supplement existing collaborations with BMW on electric drive systems and with Waymo on autonomous vehicles.This hunt for allies makes sense because JLR’s business model is looking shaky. More than 80% of the vehicles that it sold in Europe last year run on diesel, a technology that’s been undermined by Volkswagen AG’s emissions cheating and the threat of bans in many cities.SUVs make up an even higher percentage of sales. The boom in these vehicles has contributed to a rise in average carbon emissions from carmakers over the past year or two. No wonder they’re in the cross-hairs of climate campaigners. Last month JLR listed “increasing environmental activism” among its biggest challenges.The Extinction Rebellion crowd has a point here. A top-specification Range Rover can weigh more than 5,700 lbs (2,585kg), which is why the company’s vehicles tend to spew out more CO2 than peers.Because it sells less than 300,000 cars annually in Europe, JLR has special dispensation from Brussels to pollute more.(1) However, these lenient fleet emission targets expire in 2028, so the company needs to change its ways sharpish.It says it’s on track to cut emissions by 45% in 2020 compared to 2007 levels, as required by regulators. From next year there will be a hybrid or electric variant of all of its models; and Jaguar’s all-electric I-Pace compact SUV deservedly won car of the year. Creating zero emissions versions of the group’s biggest SUVS will be more difficult, though, because of their hefty weight and poor aerodynamics.Footing the bill will be a stretch too. The company has to manage a 4 billion pound yearly investment budget while selling far fewer cars than its bigger rivals: JLR sold less than 600,000 vehicles last year, about 5% of Volkswagen’s haul. Lackluster sales have left it with unused production capacity.Its attention to detail in manufacturing has also been found wanting. The Jaguar and Land Rover brands came bottom in J.D. Power’s U.S. new vehicle quality rankings, and high warranty costs are an unwelcome feature of its earnings. All of this means JLR’s profit margins are thinner than you might expect given the $210,000 price tag of a high-spec Range Rover.Even as far out as 2023, JLR anticipates an operating return on sales of 6% at most. This is similar to Daimler AG’s 2022 target for Mercedes-Benz, but is way below the margins of French mass-market carmaker Peugeot SA.Thanks to progress on cost-cutting and signs that plunging China sales have bottomed out, investors have become more confident in Tata’s ability to turn JLR around. It returned to profit in the second quarter, prompting a rally in Tata Motors’ shares and JLR’s beaten up bonds. President Donald Trump’s threat of a 25% U.S. tariff on imported vehicles appears to have receded somewhat, as has the likelihood of a no-deal Brexit that would have been ruinous for carmakers.Might this moment of calm tempt a buyer of the company out of the shadows? Tata’s reluctance to sell isn’t the only barrier. Peugeot was rumored to be keen but its chief executive officer Carlos Tavares has found another merger partner in Fiat Chrysler Automobiles NV. Bernstein analyst Max Warburton says BMW would fit but the Bavarians lost a lot of money when they owned Rover in the 1990s.There are also politics to consider. The backlash against SUVs, many built by BMW, is acute in Germany. Doubling down on gas-guzzling urban tractors might harm BMW’s emissions footprint.(2) It might also be viewed poorly by the Berlin government, which boosted electric vehicle subsidies recently.While SUVs can carry lots of baggage, increasingly it’s the wrong kind.(1) JLR's new cars must have average emissions of about 130 g/km of CO2 by 2021, compared to an industry average of 95g.(2) Depending on what happened to JLR's emissions derogationTo contact the author of this story: Chris Bryant at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis 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/opinion©2019 Bloomberg L.P.
Moody's Investors Service ("Moody's") has today assigned a Ba1 rating to Faurecia's new EUR700 million senior unsecured notes due 2027. The new notes rank pari passu with Faurecia's existing senior unsecured debt instruments, also rated Ba1.
BEIJING/SHANGHAI, Nov 11 (Reuters) - Fewer new energy vehicles (NEV) could be sold in China this year than in 2018, an official at the country's biggest auto industry association said on Monday, as customers hold back on purchases following a government decision to cut subsidies. Chen Shihua, assistant secretary general at China Association of Automobile Manufacturers (CAAM), made the comment on Monday after the association reported that sales of NEVs fell 45.6% in October from year-ago levels, following a 33% decline in September. "There is a gap between sales to date and where they were last year, so according to the development trend, we may see negative growth for new energy vehicles this year," he said.
* FACTBOX-Fiat Chrysler, Peugeot tie-up: how does it work? PARIS/TURIN, Italy, Nov 8 (Reuters) - Peugeot maker PSA Group and Fiat Chrysler would retain all of their car brands if their planned $50 billion merger goes ahead, the would-be chief executive of the combined group said on Friday. PSA CEO Carlos Tavares, seen as the architect of PSA's turnaround and in line to take the operational helm in the Fiat tie-up, said in a TV interview that the companies complemented each other well geographically and in terms of technology and brands.
Moody's Investors Service ("Moody's") has today changed the outlook on the ratings of Fiat Chrysler Automobiles N.V. (FCA) and Fiat Chrysler Finance Europe SA to positive from stable. Concurrently, Moody's affirmed the Ba1 corporate family rating (CFR) and the Ba1-PD probability of default rating (PDR) of FCA and the Ba2 ratings on the senior unsecured instruments issued by FCA and Fiat Chrysler Finance Europe SA.
(Bloomberg Opinion) -- Peugeot SA’s equity holders might not think much of its takeover of Italy’s Fiat Chrysler Automobiles NV but bondholders appear to love the idea. Fiat’s credit spreads (the extra yield above the benchmark) have tightened by as much as one-third after news of the deal emerged, accompanying a jump in the company’s share price. Peugeot’s shares fell sharply because of concerns about the premium it would have to pay, but the French company’s credit spreads modestly improved. It’s interesting that Peugeot’s shareholders and bondholders took such different views.One reason is that the European Central Bank is restarting its quantitative easing program, meaning there’s a big new buyer in the euro zone for investment grade corporate bonds. If Peugeot-Fiat becomes reality it will have the right hallmarks to attract Christine Lagarde’s Frankfurt institution. While there’s no firm deal yet, the credit rating agency S&P Global Ratings says the creation of the world’s fourth-biggest carmaker would support Fiat’s debt ratings.However, the ECB could be the real driver for shrinking both companies’ credit spreads. The central bank has just restarted its so-called corporate sector purchasing program as part of the 20 billion euro ($22.3 billion) per month QE bond-buying scheme. According to Mahesh Bhimalingam of Bloomberg Intelligence, there could be about 2.5 billion euros per month of corporate debt purchased.Fiat is already rated BBB- by Fitch Ratings, after being upgraded to investment grade from junk last November. This makes it eligible for inclusion onto the ECB’s list of potential purchases. Peugeot was junk-rated too until recently, but is now a stable BBB- across all the major ratings companies. Both companies were too late to feature in the first round of ECB asset-buying, which snapped up 178 billion euros of corporate bonds.The ECB isn’t going to suddenly build huge holdings in Fiat or Peugeot debt, but it’s logical to assume that it will look to add newly eligible industrial names. On average, the central bank owns about 20% of any holding’s total eligible debt. It doesn’t officially buy bonds to make a profit but it’s common sense to prefer an asset that offers some yield when compared to the negative rates of sovereign debt.Furthermore, as the chart above shows, the ECB likes carmakers. It probably owns up to 75 billion euros of debt in the three German autos giants, Volkswagen AG, Daimler AG and BMW AG. It would be strange indeed then if it didn’t acquire a decent chunk of the bonds in one of Europe’s biggest cross-border industrial combinations. That must put a supportive floor under the Fiat and Peugeot credit spreads.To contact the author of this story: Marcus Ashworth at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Marcus Ashworth is a Bloomberg Opinion columnist covering European markets. He spent three decades in the banking industry, most recently as chief markets strategist at Haitong Securities in London.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
How do explain Beyond Meat stock dropping 22% in one day following earnings? The answer: Volatility, a lot of short positions, and the IPO lockup ending.
On October 30th, the boards of Fiat Chrysler Automobiles (NYSE: FCA) and Peugeot's (OTC: PUGOY) parent PSA Group announced that they are in merger talks due to seeking scale in coping with costly new technologies needed to meet the electric future. Additionally, FCA showed it is somewhat resisting this downward trend on Thursday as despite a small loss, the Italian-American manufacturer at least managed to beat third-quarter earnings forecasts thanks to record profitability in its North American segment. Fiat Chrysler shares jumped nearly 9%, just a day before it released its third-quarter earnings, following its PSA announcement earlier in the morning.
Carlos Tavares, a former Renault star credited with reviving the company's French rival Peugeot SA, has long shone as a restructurer-in-chief, staring down unions and slicing down bureaucracies. Combining Peugeot and Fiat Chrysler Automobiles NV would create the fourth-largest global auto manufacturer, a big advantage for amortizing investments in electric vehicles and getting the best prices from parts suppliers. The auto industry faces "ten years of chaos," Tavares told reporters at September's Frankfurt auto show.
PARIS/MILAN, Oct 31 (Reuters) - European labour unions have called on Peugeot owner PSA and Fiat Chrysler to avoid job cuts and factory closures as the two major carmakers prepare to tie the knot, underscoring worries about the $50 billion deal as the regional economy falters. As PSA and Fiat Chrysler detailed plans on Thursday to create the world's No. 4 automaker, IG Metall, Germany's largest union by members, said it would seek to preserve the autonomy of the French carmaker's German unit Opel. The two groups have said no plants would be closed and an existing arrangement rules out forced layoffs at Opel, bought by PSA two years ago, until mid-2023.
The market is giving more tricks than treats on this rainy Halloween in New York City. Case in point: The news that PSA Peugeot Citroen and Fiat Chrysler Automotive are in merger talks. As I have mentioned in prior Real Money columns, I was a sell-side auto analyst for 11 years, first in New York, then in London.
Italy’s Fiat Chrysler (FCA) and Peugeot owner Groupe PSA, have reached a deal to merge and if sealed will drive a fresh wave of industry consolidation
Fiat Chrysler and Peugeot's parent company, PSA group, have signed off on a $50 billion merger of equals, giving shareholders 50-50 control of the new company. Greg Migliore Autoblog Editor-in-Chief, joined Yahoo Finance's On The Move to discuss.