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GM and PSA Axe Plans for Mid-Size Models, Narrow Their Partnership

Even though it hasn't been that long since General Motors and PSA Peugeot-Citroen announced big plans for an elaborate partnership, the two companies have failed to come to an agreement on a number of projects.

After dropping plans to jointly develop a small car for Latin America and a dual-clutch gearbox earlier this year, we now learn that GM and PSA have also scrapped plans for a joint mid-size car program that would have seen models like the next-generation Opel/Vauxhall Insignia, Peugeot 508 and Citroen C5 sharing parts.

Starting from today, consumers in the UK can place their orders in for the 2013 model C3 Picasso that was updated with a mid-life facelift at the recent Paris Motor Show.

Cosmetically, the C3 Picasso small minivan benefits from a new face incorporating Citroen's double-chevron grille along with a restyled bumper featuring LED daytime running lights on higher-grade models, and two new body colors named Ink Blue and Pearlescent White.

While we have no problem replacing everyday products such as DVD players and cell phones with new ones once they go bad, if the same thing happens to our car, it's a whole different story, and rightfully so, since automobiles are the second largest investment in most single family households.

Cars tend to be much more complex than most household appliance and face seriously more adverse conditions day-in, day-out. No matter how good the car is or how much carefully you maintain it, at some point, something is bound to go wrong.

If not all, most ordinary drivers would think twice before sitting behind the wheel of a racecar after such a traumatic crash as the one experienced by former BMW-Sauber and Renault Formula 1 star Robert Kubica in Italy almost two years ago.

But not Kubica, who not only returned to racing, but the Pole also made his maiden victory in a World Rally Car at the 2012 Rally di Como in Italy this past weekend.

The 200,000th DS3 rolled off Citroën's assembly line at its Poissy plant in France on Wednesday, November 14. That's not too shabby if you consider that, the DS3 was launched in Europe in March 2010 as a more premium offering than the company's mainstream C3 in the supermini segment.

The DS3's first venture outside of Europe came towards the end of 2010, followed by Argentina in 2011, Brazil in the first half of this year and China in the second half of 2012, which means Citroën can increase its sales numbers over the next years.

In many relationships, there comes a time where the two sides don’t know what they want from each other and things start getting awkward.

General Motors and PSA Peugeot Citroen seem to have reached that point faster than anyone would have expected. After all, their alliance was formed only eight months ago amid assurances that it would greatly benefit both groups and help them ride the European market crisis successfully due to the huge economies of scale that would be achieved.

Unlike the United States where the taxicab market is as tedious as a Ford Crown Victoria in a white finish, in Europe, it's as colorful as a summer garden with offerings ranging from inexpensive Dacia Logan saloons to luxurious Mercedes-Benz E-Class Estates and everything in between.

And the palette will soon get more vibrant with the addition of the Citroën DS5 Hybrid4 that will be unveiled in a world premiere at the upcoming European Taxi Fair in Cologne from November 9 to 11, 2012.

It's been a long recovery road for former BMW-Sauber and Renault Formula 1 star Robert Kubica, who suffered severe arm and leg injuries in a horrendous accident in February 2011 in Italy's Ronde di Andorra rally.

The 27-year old F1 racer from Poland, who made an understated return to rally driving in September winning two small races in Italy, is now ready to take the next step and compete in the Rally di Como in Italy on 15-17 November and France's Rallye du Var the following week.

On Tuesday, we ran a story based on a report by Bloomberg News that Fiat CEO Sergio Marchionne has been talking to PSA Peugeot Citroen and Opel executives about the three carmakers merging into a single entity. Today, however, Marchionne refuted the report describing it to Automotive Europe as “bizarre”.

The Fiat-Chrysler CEO admitted that he had been talking with GM and PSA CEOs Dan Akerson and Philippe Varin, respectively, but he stressed that the discussions were misinterpreted by the report.

If you're a professional in need of a medium-duty van and for whatever reason, you don't like the Peugeot, Citroen and Fiat badges and/or the selling and service points of the aforementioned brands, there's a fourth variant of the series from Toyota.

The Japanese carmaker wanted to re-enter the light commercial vehicle segment in Europe after suspending sales of the HiAce van and decided it would be better to sign an OEM agreement with PSA group and re-badge the Citroen Jumpy / Peugeot Expert, which is also offered under the Fiat brand as the Scudo.

With GM’s European Opel/Vauxhall brands and PSA Peugeot Citroen losing money as well as market share fast, the two groups are looking for ways to make the best out of the alliance they formed on February 29.

Under the initial agreement, GM paid US$423 million (€326 million) for a 7 percent stake in its French partner, which made it its second-largest shareholder. The Detroit carmaker had stated, however, that despite the massive gains for both companies, it might be forced to write down its investment.

If anything, Sergio Marchionne is a man who speaks his mind – a bit too often, some might say. Still, the CEO of the Fiat-Chrysler group is deeply concerned about the drop in European car sales and he thinks something should be done about it.

Marchionne, who is also the head of ACEA, the European auto manufacturers’ association, is strongly endorsing the idea that there should be a European Union-led coordinated strategy if the industry is to survive.

“I am concerned that if we don’t find a collective will to resolve this at a European level, it is going to become a permanent crisis”, he said on Wednesday, October 10.

We bet that rivals of Sebastien Loeb wish that the 38-year old Alsatian hadn’t quit being a gymnast in favor of rally racing in 1995… If he had stuck to his former profession, Loeb and his co-driver Daniel Elena wouldn’t have done a Michael Schumacher (in his first Formula 1 stint) and dominate the FIA World Rally Championship.

Actually, they have outdone Schumi for they have won the WRC title nine years in a row after winning this weekend’s Rallye de France and helping Citroen secure its eight manufacturers’ title in the WRC.

After the U.S. market meltdown, which resulted in General Motors and Chrysler receiving a bailout, the two automakers along with Ford recovered quickly and are now posting near-record profits.

However, it seems that Detroit's Big Three have to face the fact that, even though their sales are blooming in most parts of the world, the European debt crisis will put their local operations in the red.

According to a report from the Detroit News, GM’s Opel/Vauxhall and its French partner PSA Peugeot Citroen, Ford of Europe and Fiat will lose a combined US$4 billion this year because sales in the Old Continent are slumping to their lowest levels since the mid-1990s.

After the U.S. market meltdown, which resulted in General Motors and Chrysler receiving a bailout, the two automakers along with Ford recovered quickly and are now posting near-record profits.

Not to miss out on the electric car fad, Citroën is presenting a new take in the segment with a conceptual version of its DS3 supermini at the 2012 Paris Motor Show.

The not-too-brightly named DS3 Electrum might look like a regular model on the outside but under the hood, it replaces the internal combustion engine with a pair of 65kW 87Hp) electric motors.

Auto Parts

GM and PSA Axe Plans for Mid-Size Models, Narrow Their Partnership

2013 Citroën C3 Picasso Shows its New Face in Britain, Priced from £12,995

Breaking Bad: Warranty Direct Lists the 10 Least Reliable Cars of the Last 15 Years

Wheels of Steel: Robert Kubica Proves He's Still Got It

Citroën Builds 200,000th DS3 Supermini in a Little Over Two Years

GM and Peugeot Reportedly Freeze Talks About a Tie-up of Their European Operations

Citroën Targets Europe's Taxi Market with New Edition of DS5 Hybrid4

Robert Kubica Continues Comeback, will Compete in Two International Rallies in a C4 WRC

Marchionne Refutes Bloomberg Report on Fiat, Peugeot and Opel Tie-up

Toyota Looks to PSA Peugeot-Citroen and Fiat for its New ProAce LCV

Toyota Looks to PSA Peugeot-Citroen and Fiat for its New ProAce LCV

GM and PSA Peugeot Citroen Reportedly Considering European Merger

GM and PSA Peugeot Citroen Reportedly Considering European Merger

Fiat-Chrysler CEO Marchionne Says European Car Market Won’t Recover Without EU Intervention

Fiat-Chrysler CEO Marchionne Says European Car Market Won’t Recover Without EU Intervention

Loeb Wins 9th Consecutive WRC Championship, Citroen Claims 8th Manufacturers’ Title

Loeb Wins 9th Consecutive WRC Championship, Citroen Claims 8th Manufacturers’ Title

Detroit's Big 3 to Record US$4 Billion Combined Losses this Year due to European Car Sales Slump

Detroit's Big 3 to Record US$4 Billion Combined Losses this Year due to European Car Sales Slump

Citroën Plugs Into the Grid with New DS3 Electrum Concept

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