GENEVA, March 7 — Not a bad day for Peugeot — first the PSA Group announces it's buying GM's European operations. Then it's 3008 model wins car of the year at the Geneva Motor Show
CEO of Peugeot Jean Philippe Imparato says: “Peugeot is back, Peugeot as the heat machine at the moment, we have 125,000 orders in five months for the 3008.”
There will be no shortage of unveilings at this year's show. Ferrari and Lamborghini will be competing in the supercar category.
And luxury sports utilities will again have a big presence among the European automakers. Peugeot will also unveil an upscale SUV.
Where that model fits into the range now PSA has agreed to buy Opel and Vauxhall for €2.2 billion (RM10.3 billion) is a hot topic. So is the possibility of further industry consolidation in Europe.
Vicky Pryce, chief economic advisor of CEBR, says: “Consolidation is the name of the game. If you have a company like General Motors which wasn't making any money in Europe then something has to give.
“Yes there may be some losses in terms of the number of people who work in that combined company but what is does give you is a wider reach and allows better economies of scale and that is really, really, important in a globalised environment and so I think we'll see more of that.”
There's another potential shadow hanging over the gathering. Trade. From Brexit to Trump, it's a tricky road for carmakers to navigate. And many are preparing for the potential economic fallout from both.
Trump's threats to impose a border tax on auto imports could cause pain to big exporters like Germany.
And Brexit has the likes of Ford, Nissan and BMW wondering about the future of their factories after Britain's departure from the EU. — Reuters
