PSA Group sees rasied revenues in the first quarter of 2015, even though

• Group revenues up 4.6% to €13.7 billion.
• Automotive Division revenues slightly up, to €9.0 billion.
• New car revenues including China up 5.5% ^[1].
• The Group is ahead of schedule with its "Back in the Race" recovery plan and is benefiting from a favourable economic environment.

In the first quarter of 2015, consolidated Revenues totalled €13,674 million, a 4.6% rise over the prior-year period. Automotive Division revenues, excluding the contribution of the Chinese joint ventures, amounted to €8,950 million for the period, representing a slight increase on first-quarter 2014. 

Revenues from new vehicles are up 1.1%, thanks to positive impact of product mix and price and currency effects (primarily relating to the British pound), offsetting a decline in volumes.

Pro forma Automotive Division revenues¹ including our share of the Chinese joint ventures rose 3.3% to €10,217 million, reflecting the strong increase in revenues from China.

In the first quarter of 2015, unit sales of assembled vehicles were sharply higher in Asia, Middle East-Africa and India-Pacific, and slightly lower in Europe. Sales were also down in Latin America and Eurasia, where rightsizing measures on fixed costs are in progress.

In Europe, vehicle sales inched back 1%, whereas new car registrations grew by 4% over the period. In light of the increase in demand, PSA Peugeot Citroën announced that it would be increasing output over the next four months while at the same time pursuing its strategy to improve the pricing power of its three brands, Peugeot Citroën and DS.

In Asia, the Group achieved unit sales up by 9%, led by growth in the Chinese market.

In Latin America and Eurasia, sales are down 35% and 86% respectively, on markets also declining significantly by 12% and 36%. Sales are managed to reach breakeven within 2017 ^[2], with actions to significantly lower the breakeven point, thus preserving the rebound capacity of the Group.

In the Middle East-Africa and India-Pacific regions, the Group's sales are up 19% and 32% respectively, with a particularly good performance in Turkey, up 47%.

At 31 March 2015, total vehicle inventory, including independent dealers, stood at 370,000 units, down 54,000 from a year earlier.

Faurecia's revenues amounted to €5,140 million, up 13.8% on the prior-year period.

Banque PSA Finance's revenues, accounted for on a 100% basis, rose 1.4% over the period, to €424 million^[3].

Commenting on the publication of the first-quarter revenues figures, Jean-Baptiste de Chatillon, said: "We are speeding up the implementation of our "Back in the Race" recovery plan. We remain focused on carrying our targeted measures through to completion, irrespectively of the tailwinds we've enjoyed so far this year."

Outlook

In 2015, PSA Peugeot Citroën expects to see automotive demand increase by 4% in Europe and by about 7% in China, but decline by some 10% in Latin America and around 30% in Russia.

The Group aims to generate operating free cash flow of around €2 billion over the period 2015-2017. It is also targeting an operating margin^[4] of 2% in 2018 for the Automotive Division, with the objective of reaching 5% over the period of the next medium-term plan, covering 2019-2023.

Financial calendar

• 29 July 2015: First-Half 2015 Results

Appendix

Worldwide Automobile Sales – First Quarter (cars and light commercial vehicles)

Estimated figures

Assembled vehicles, exc. CKD units

Europe = EU + EFTA + Albania + Bosnia + Croatia + Kosovo + Macedonia + Montenegro + Serbia

FIRST-QUARTER 2015 HIGHLIGHTS

• 29 January 2015: the first worldwide employee share issue is a resounding success.
• 2 February 2015: the first local partnerships between BPF and Santander begin operations in France and the United Kingdom.
• 6 February 2015: Banque PSA Finance adapts and improves the terms of its financial security.
• 23 February 2015:production of a new vehicle is attributed to the Poissy plant, supported by a €150 million capital expenditure programme.
• 17 March 2015: Capital Day.
• 30 March 2015: the 2014 Registration Document is published.

[1] Pro forma revenues including the contribution (50%) of Chinese joint ventures DPCA and CAPSA.

[2] Recurring operating income.

[3] On an IFRS basis, Banque PSA Finance's revenues totalled €154 million in first-quarter 2015, reflecting the application of IFRS 5 and the deconsolidation of the UK and France joint ventures.

[4] Recurring operating income as a percentage of revenues for the Automotive Division.

Vauxhall takes title as biggest brand in Scotland 2014, for the seventh year running.

Vauxhall was the biggest-selling manufacturer in Scotland last year, for the seventh year running. Innovative finance programmes helped drive retail sales with many models now available with great value PCPs.

The outgoing Corsa had an excellent 2014 and with over 10,000 sold. It was the number one selling vehicle in Scotland at retail, private buyers purchasing vehicles with their on hard-earned cash or on finance, with over 8,000 registered.  It just missed out on the top spot overall, a position it has held for six of the last seven years by just 79 cars.

“We are delighted to be Scotland’s biggest-selling car manufacturer for the seventh year running,” said Gordon Hannen, Vauxhall’s Regional Operations Manager for Scotland. “We are confident the new 2015 Corsa, in showrooms now, can regain its position at the top of the Scottish car charts.”

Priced from just £8,995 on-the-road, Vauxhall’s all-new Corsa raises the class benchmark for driveability, comfort and practicality.

Talk about putting your money where your mouth is.....

Sergio Marchionne, chief executive of Fiat Chrysler Automobiles, is putting his money where his mouth is.

Last week, a U.S. regulatory filing revealed that he had bought 335,745 ordinary shares in the group at 7.727 euros apiece for a total of 2.6 million euros.

The purchase, documented in a filing to the Securities and Exchange Commission, comes after he presented his latest strategy plan in May to turn FCA into the seventh biggest carmaker in the world by boosting sales to seven million vehicles by 2018 from 4.4 million last year. It is a plan that has been met with skepticism by analysts, who describe it as too ambitious.

Marchionne has come to own 6.8 million shares, representing 0.42 percent of the total number of FCA shares outstanding when including the special voting shares that were awarded when Fiat completed its acquisition of Chrysler this summer. These special shares give shareholders extra voting rights as long as they hold on to them for three years. Marchionne’s stake would otherwise stand at 0.5 percent.

Marchionne also has 16.9 million stock options that are exercisable within 60 days under FCA equity incentive plans, a subsequence Oct. 22 filing with the U.S. market regulator showed on Thursday. If exercised, he would own 23.8 million shares, representing 1.5 percent of the total when including special shares.

The price at which Marchionne bought the last batch of shares is the one that FCA offered to buy out Fiat shareholders who did not want to remain invested in the newly created group.

As chief executive, he stands to receive many more shares from grants and other benefits that come with his job in the coming years.

John Elkann, chairman of FCA as well as chief executive of the group’s parent company, Exor, bought about $1 million worth of shares in May. Since then Elkann has not bought any more shares, according to an Exor spokesman. The latest SEC filing shows Elkann has 133,000 shares in his personal portfolio.

UBS analyst Philippe Houchois said Marchionne’s latest purchase was likely done as a show of faith in the group. “It could be a symbolic gesture,” he said.

Marchionne bought the latest shares at a good price, said Houchois, who has a target price of 10 euros for FCA.

In creating FCA, Marchionne had it incorporated in the Netherlands with its fiscal residency set up in London. He then made its primary stock listing in New York, where it began trading on Oct. 13.

Another London analyst said FCA’s stock had performed modestly because investors preferred to wait for Marchionne’s plan to start producing results - something that will take some time.

The Oct. 22 filing has a disclaimer saying Exor has no plans to buy more shares in FCA, work towards merging FCA with another group nor get FCA to sell assets. But it also stipulates that Exor reserves the right to do so in the future if it sees fit.

REPORT HERE

Hyundai releases third quarter results, with a better forecast for Q4.

• Hyundai Motor sold 3.62 million units worldwide through 2014 third quarter
• Sales revenue and net profit stand at 65.68 trillion won and 5.99 trillion won, respectively  

Hyundai Motor Company, South Korea’s largest automaker, today announced its 2014 third-quarter business results, which show that the company posted an increase in sales due to its strong presence in global markets and the launch of its game-changing models this year, including the all-new Genesis and Sonata. 

For the first nine months of 2014, sales revenue increased 0.5 percent to 65.68 trillion won (auto: 53.33 trillion / finance and others: 12.35 trillion) from a year earlier. Hyundai Motor sold an accumulated 3,624,837 units globally (Korea: 501,184 / overseas: 3,123,653) as of the end of September this year, a 3.6 percent increase from a year earlier. In Korea, Hyundai Motor’s sales went up 4.7 percent, mainly due to strong sales of new models and SUV models, while its overseas sales rose 3.4 percent from the same period a year ago.

However, operating profit and net profit fell 9.7 percent and 12.7 percent to 5.67 trillion won and 5.99 trillion won (including non-controlling interest), respectively, due to the strong won against the U.S. dollar.

In the third quarter alone, sales revenue increased 2.2 percent to 21.28 trillion won (auto: 17.14 trillion / finance and others: 4.14 trillion) with global sales of 1,128,999 units. However, both operating profit and net profit declined 18.0 percent and 28.3 percent to 1.65 trillion won and 1.62 trillion won, respectively, from a year earlier because of fewer working days at its domestic plants and the Korean won’s strongest rate against the U.S. dollar since the second quarter of 2008.

While the global auto industry continues to face uncertainties, Hyundai Motor will keep focusing on reinforcing fundamentals for future growth by further strengthening its quality management as well as enhancing its brand power.

Hyundai Motor’s efforts on quality management have been proven by a variety of third-party agencies. For instance, the company’s all-new Genesis and Sonata were rated as one of the safest cars on the road by the Insurance Institute for Highway Safety’s (IIHS) crash tests in the U.S.

In terms of brand management efforts, Hyundai Motor’s brand value surged 15.6 percent from a year earlier to $10.4 billion, achieving its highest-ever ranking of No. 40 in brand consultancy Interbrand’s 2014 Best 100 Global Brands.

In addition, Hyundai Motor will stay focused on introducing new models at the right times. While the all-new Genesis and Sonata are still in the process of launching in key markets, the company is also pushing forward on the launch of its regionally-strategic models such as Aslan, ix25 and i20.

Overall, Hyundai Motor forecasts that its fourth-quarter performance will improve compared to the recent quarter based on several positive factors such as the weakening of the Korean won against the U.S. dollar, new model launches and stabilized operation at its Korean plants.

USA - Ford raises incentives on Fusion to cut inventories

Ford Motor Co. has been raising incentives on the Fusion sedan to help clear out growing inventories, just months after it started building the car in a second North American plant to keep up with demand.

In many parts of the country, the Fusion is now offered with zero-percent financing for 60 months plus $1,000 cash back. Ford also is offering leases with no money due at signing and no first payment, or discounts of as much as $3,000 for buyers who decline the financing and make a trade-in.

Dealers and analysts said they are the most generous deals on the Fusion since the current generation was introduced in 2012.

"The car is selling, but not as fast as they're building them," said Larry Taylor, the owner of Beau Townsend Ford in Vandalia, Ohio, and a former member of the Ford dealer council. "They've buried us."

Taylor said he has sold 17 so far this month and has 90 more on his lot, plus 100 more on the way.

Ford had a 97-day supply of the Fusion as of Feb. 1, up from 84 days a month earlier, according to the Automotive News Data Center. Fusion sales declined 8 percent year-over-year in January, though it outsold the Honda Accord by 113 units.

Sales of the Fusion -- and mid-sized cars in general -- have weakened in the past six months, coinciding with when Ford began building it at a plant in Michigan to ease inventory shortages. The segment topped 200,000 units a month from February through August 2013 but has fallen short of that mark in each month since then.

In addition, snowstorms and cold weather slowed sales of many new vehicles in January, allowing inventories to grow.

Ford's chief sales analyst, Erich Merkle, said he is confident Fusion supplies will thin out as the weather warms up. He said Ford plans to be disciplined with incentives, yet "maintain a competitive position." After accounting for incentives, the Fusion commands the segment's highest transaction prices, he said.

"The midsize sedan segment is the most competitive segment in the industry right now," Merkle said. "The good thing is average transaction prices are still very healthy."

Ford has been spending about $2,900 in incentives on each Fusion since December, up from an average of roughly $2,200 for all of 2013, according to Alec Gutierrez, senior market analyst with Kelley Blue Book. Both the Toyota Camry and Nissan Altima still have higher incentives, he said.

Even though Ford now has enough Fusion production capacity to keep up with the segment's leaders this year, Gutierrez said the company would be ill-advised to get into a discounting war to try to knock off the Camry.

"When you know that Toyota has already committed to doing whatever it takes to keep the Camry No. 1," he said, "I think it would be a risky proposition for Ford to try and make a statement in this segment right now."

Mitchell Dale, the owner of McRee Ford in Dickinson, Texas, said he doesn't see the Fusion incentives as a worrisome sign. Dale said he actually could use more Fusions than what he has on hand now.

"They're being proactive to increase the sales pace of the car," he said. "I don't think it's a panic. I think they're trying to get the dealers moving them at a faster pace. That car is a tremendous value and stacks up well against the competition. I think they're trying to jump start it."

REPORT HERE

Time to fall in love with the Volkswagen Up !

A Volkswagen showroom is not necessarily the first place you’d think of in which to fall in love… but from tomorrow until Valentine’s Day, Retailers are hoping romance will flourish for potential city car owners, as they stage the first Love up! event.

From 30 January until 14 February, participating UK Retailers will be offering gorgeous deals on the up! city car, including one year’s free insurance* and monthly payments on Volkswagen Financial Services’ Solutions personal contract plan from just £99 per month with a representative 6.4 per cent APR (worked example below), as well as up to three years’ free servicing†.

The Love up! event coincides with the relaunch of Volkswagen’s ‘Tall Girl’ television advertising campaign, in which a tall lady struggles to find a suitable partner.  Eventually her new beau arrives: she expects to be disappointed due to the compact size of his car, but is delighted that the ‘surprisingly spacious’ up! accommodates a young 6’3” man who matches her stature.  To view the advert, visit https://www.youtube.com/user/UKVolkswagen.

Volkswagen’s up! was launched in the UK in March 2012.  At 3,540 mm long it is one of the smallest four-seater cars on the market, but due to its clever design, packs one of the most spacious interiors, with room for four adults.  It is available in three- or five-door bodystyles and with a choice of two petrol 1.0-litre three-cylinder petrol engines or, introduced this month, with a pure electric powertrain.  Since launch it has claimed a number of prestigious awards including the What Car? Car of the Year and World Car of the Year accolades.  Prices for the up! start at £8,265 for the entry-level 1.0-litre 60 PS Take up! model.

For full terms and conditions of the Love up! event offers and to make your date with an up!, please visit your nearest Volkswagen Retailer or see www.volkswagen.co.uk.

Worked example:

Solutions representative example based on 10,000 miles p.a. for a Move up! 1.0 3-door.^

**One year’s free insurance is available from Volkswagen Insurance Motor Insurance for drivers aged over 21 years on selected models (excludes Take up! and e-up!). Other eligibility criteria apply.  Go to insurewithvolkswagen.co.uk/up for full T&Cs. Volkswagen Insurance Motor Insurance is sold, underwritten and administered by Allianz Insurance plc. Excludes Northern Ireland. Customers in Northern Ireland receive deposit contribution of up to £500 in lieu: £350 deposit contribution is available on Move up! (£500 contribution on High up!, Rock up! & Groove up! and offer excludes Take up! & e-up!) for customers who purchase their car with Solutions Personal Contract Plan in Northern Ireland only. Indemnities may be required. Subject to status. Available to over 18s. Terms and conditions apply. Retail sales only.

^4.4p per excess mileage charges apply.

^^Payable as first payment.

††Payable with optional final payment. Further charges may be payable if vehicle is returned.

†Free servicing is available up to 3 years or 30,000 miles (whichever comes soonest) for customers who purchase an up! with Solutions Personal Contract Plan. Indemnities may be required. Subject to status. Available to over 18s. Terms & Conditions apply.

TMW - The downfall of the PSA Group, or the start of something better ?

If the rumour mongers are to be believed, then it looks like the PSA group, or Peugeot and Citroen to the rest of us, are running out of money, and very quickly, and they are relying on minority shareholder General Motors to bail them out.

It has been reported elsewhere that the money could dry up as soon as the year end and the major stockholders, the Peugeot family, have initially offered to stand down and agree to allow General Motors to take over the company, the company has reportedly burned through three billion euros in operating cash last year, and this is a figure that can not be sustained.

General Motors currently operated three big brands in Europe, Vauxhall for the UK market, Opel for the rest of Europe and Chevrolet that is marketed everywhere, so will the General step into the breach and have two more huge brands to add to its arsenal.

Since General Motors invested in PSA last year to the tune of 7% they have tentatively agreed to share engines and platforms for new models including the new Peugeot 3008, Vauxhall/Opel Zafira and Citroen C3 Picasso

Former Peugeot GB managing director and now executive vice-president of corporate communications, Jon Goodman, told Reuters: ‘We don’t comment on speculation or rumours.”

However all the brands are suffering from major over capacity, and should the general step into PSA's boardroom as boss they will be requiring cuts that will not sit well with the French government, and in particular French President Francois Hollande, who will undoubtedly be a key player in any decisions that will be ultimately made.

But whatever that outcome it has got to work, or PSA could go bust, and that would be worse for the French government, after all there are 77,000 directly employed at PSA, and countless 1,000's of associated jobs.

It has been noted that the Peugeot family had already asked the Chinese auto company, Dongfeng, for financial support, but after much negotiation these talks failed, and in a direct comparison to the downfall of MG-Rover back in 2005, the family must be thinking that this situation may well end up the same way and it looks like the General Motors discussions may be the last chance for them to avoid, what will be the biggest auto failure of all time.

According to Reuters, General Motors are "playing hardball" in waiting to be assured that that is can make all the necessary cuts in plant and jobs at what they call "reasonable cost", no jobs or plant closures can be classed as reasonable, but if it is a case of plant and job cuts against total closure, then surely the cuts will be the best way forward, either way no decision will be made before the German elections in September, so as to avoid the fall out from any issues that may arise in Germany.

As it looks, the General is on an upward swing, if you ignore the sales figures,they have the new ADAM, Cascada and Mokka, along with a mid life refresh of the Insignia and the new Corsa due imminently, Citroen have a number of refreshed models as well as the new C4 Picasso and Grand Picasso, Peugeot has the stunningly beautiful 208 and 2008, along with refreshed RCZ, it seems as though PSA are relying heavily on the 208/2008 to turn things around, and so far the sales of these models have proved fruitful.

The 408 has failed miserably to live up to it's hype and sales are no where near as good as the original 405/6/7 which finished production in 2011 and 4.5 million units against 125,650 for the years 2010/11 for the 508, and it is this model that replaced two segments namely the large family car and executive car markets, the 508 has been a failure in the UK market with sales bordering on the non existent compared to the original 405.

Neither the PSA or the General are having a great time in Europe, with the General suffering to the tune of a 11% drop in sales against 2012 for the first five months of the year and PSA an even worse 13.9% drop, so will the general invest, yes i think they will, PSA has invested heavily in the new 208/2008 and they are reaping the rewards now, but they failed to make sure that the income matched the out goings, and in doing so they are likely to lose their Independence, and that may not be a good thing for the French company.

Report by J.Mower

£2.5k reduction on LEAF, not as much as the £4k discount in the US, but a drop nevertheless

• Price reduction of £2,500 makes it easier to join the electric vehicle revolution
• Drive a LEAF for just £239 per month
• Offer available at all 180 Nissan LEAF dealers in UK

Nissan is making zero-emission mobility more affordable by reducing the price of the all-electric Nissan LEAF by £2,500.

The change comes as part of a global effort to make the LEAF more affordable in the pioneering electric vehicle’s three main markets of Japan, Europe and the United States.

In addition to the reduction in the retail price, UK customers can also benefit from offers including low rate finance*. The new price is effective immediately, ahead of the arrival of an updated version of the LEAF.

This is on top of the incentive offered by the government and means a customer can drive away in a brand new LEAF for  £23,490, or just £239 per month.

In addition to the new price LEAF buyers will also benefit from extremely low running costs, with a battery recharge costing a fraction of the cost of a tank of fuel. Being fully electric, the LEAF also benefits from zero road tax and is currently exempt for company car ‘benefit-in-kind’ tax.

An ever-growing number of public charging points also offer quick and convenient opportunities to top up the battery, including a network of rapid chargers. These allow LEAF drivers to charge from zero to 80% capacity in less than 30 minutes.

Winner of the World, European and Japan Car of the Year Awards when it was launched in 2011, about 50,000 Nissan LEAF electric vehicles have been sold world-wide. The LEAF demonstrates that battery-powered cars are ready to make a significant contribution to a world-wide reduction in vehicle emissions.

The Nissan LEAF comes with very high levels of standard equipment. Its standard satellite navigation system incorporates Carwings, Nissan’s unique telematics system which allows an owner to control the heating and air conditioning settings and to monitor the charging process remotely via a smart phone.

Other standard equipment includes a rear-view parking camera, rapid charge capability, Intelligent Key, LED headlamps and Bluetooth connectivity. Nissan LEAF has been granted a top 5 star rating in Euro NCAP crash tests.

“There is no doubt that Nissan LEAF is a revolution and existing customers are passionate in their belief that zero-emission mobility is not the future, but is here now,” said Paul Willcox, senior vice president, Nissan Europe.

“Nissan’s objective for LEAF has always been to bring zero-emission mobility within reach of the mass-market. Our price reduction underlines that commitment and with no price premium even more motorists will become believers.”

Production of the updated model is due to start at Nissan European plant in Sunderland, UK, in Spring 2013.

* Low rate (6.9%) finance available for PCP and HP purchases