It's being reported that PSA (Peugeot Citroen) are to take control of Mitsubishi
It’s being reported that PSA (Peugeot Citroen) are to take a controlling stake of up to 53% in Mitsubishi.
Car makers have been fighting hard to survive in the last year or so as the landscape for their products goes through the biggest sea change ever. Fiat boss Sergio Marchionne was quoted as saying that if car makers didn’t rationalise and merge then they would go under. He sees a car making landscape with a handful of huge car makers and a plethora of very small ones – nothing in between.
Which explains the increasing hook-ups, takeovers and mergers that are going on between car makers. The latest to be put in the frame is a hook-up between France’s PSA (Peugeot Citroen) and Mitsubishi. It’s being reported that PSA are going to take a controlling stake in Mitsubishi, which makes a lot of sense.
As the US market comes more in to line in terms of product choice with the rest of the developed world, it will become increasingly important for European car makers to get a piece of the pie. Ford are well placed to do this (as with the US Fiesta launch this week); Fiat are doing it with Chrysler; Renault have hooked up with Nissan, but so far PSA have no route to the US market. A tie-up with Mitsubishi would give them a credible way in.
In addition to a credible route to the US market, Mitsubishi could also bring to the party huge SUV and Crossover skills (something not in abundance at PSA – they already use Mitsubishi’s SUV capabilities for their crossovers) and some cutting edge Electric Vehicle technology.
Makes sense. Perhaps they could call it SPAM?
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