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If they didn't have all of the costs associated with building in Europe, they might've made money. Now GM will be out of pensions worldwide.
Or maybe they were just bad at making cars for the European market. It's not like they were only auto company in the European market with pension obligations to contend with.
Quote:
Originally Posted by Pavlov's Dog
It's a lot easier to understand why Peugeot needs the US market than to understand why the US market needs Peugeot. That is the textbook definition of bad strategy.
Strategically it would make a lot more sense for them to acquire an automaker that already has a dealer base in the US.
Mitsubishi would make a lot of sense since they have long cooperated, have complementary product ranges and geograpical coverage. The cost of getting established in the US are massive and they will undobutedly see strong competition from Chinese manufacturers also looking to establish a beachhead in the highly competitive US market. I'm pretty sure Peugeot will fail this time too. Their only differentiator that I can think of are some weird design quirks.
Mitsubishi just got snapped up by Renault-Nissan so that's a no-go.
Or maybe they were just bad at making cars for the European market. It's not like they were only auto company in the European market with pension obligations to contend with.
If you don't make luxury cars, you've got problems making money there.
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Quote:
Originally Posted by Pavlov's Dog
It's a lot easier to understand why Peugeot needs the US market than to understand why the US market needs Peugeot. That is the textbook definition of bad strategy.
Strategically it would make a lot more sense for them to acquire an automaker that already has a dealer base in the US.
Mitsubishi would make a lot of sense since they have long cooperated, have complementary product ranges and geograpical coverage. The cost of getting established in the US are massive and they will undobutedly see strong competition from Chinese manufacturers also looking to establish a beachhead in the highly competitive US market. I'm pretty sure Peugeot will fail this time too. Their only differentiator that I can think of are some weird design quirks.
I think it'll very much depend on if they've changed their attitude or not. During their last US foray they saw themselves competing with Mercedes and BMW but didn't amp up their design/quality control to compete in that area. Between a huge variety of different makes available and the added hassle of lemon laws that tend to be considerably laxer if they exist at all in other markets the US can be a lucrative but very tough market.
Location: By the sea, by the sea, by the beautiful sea
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Quote:
Originally Posted by SWFL_Native
I hear they are quite reliable.
But often plagued by niggling, easily fixed problems. For example, the 505's blower motor had a steel bushing, when the temp went down it squealed. Rather than replace that bushing with an Oilite one that would likely have cured the problem they'd just keep replacing the bad ones under warranty with the same old steel bushing.
Location: By the sea, by the sea, by the beautiful sea
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Quote:
Originally Posted by victimofGM
Could they compete on the same level as upscale, but not luxury, brands like Buick and Acura for example?
I think they could IF they make the commitment but that's a pretty big if. I owned one for a while and knew some dealership personnel, my impression was that they were about 98% there but lacked the drive to go that last 2% and realistically, even low end cars sold in the US do so. The US is a tough market, from what I understand it wasn't all that long ago that in some European countries a manufacturer could get away with offering maybe a 6 month or 1 year warranty when 3/36 was pretty standard in the US. That and our litigious society can make a huge difference in the cost of doing business. The US is a big market but it's also extremely competitive. Any manufacturer wanting to succeed here definitely needs to bring their 'A' game.
I would guess that Peugeot would work a deal with some other manufacturer to plug into their dealer network. It would be really expensive to try to establish a new set of dealerships.
I winter at a ski resort and summer on the coast. I want an AWD wagon with some towing capacity for boats, dump runs with yard debris, and occasional U Haul trailer rentals. I'd certainly take a look at a Peugeot 508 SW AWD wagon. In Europe, it has a 3,900 pound towing capacity. I doubt the diesel would make it here but it gets fantastic fuel economy with the diesel. If the price is right, the warranty is right, and there's enough of a dealer network in my driving pattern, I'd certainly look at it.
Could they compete on the same level as upscale, but not luxury, brands like Buick and Acura for example?
The only way a European-manufactured car can make it in the US is as a luxury car or luxury sport sedan with luxury car prices. The labor costs are too high to compete in the mid-market. Think Volvo, not Buick. In Europe, you can buy Mercedes, BMW, Audi, Volvo, etc in a base trim level priced competitively with other makes. I rent them in Europe. They're nothing like what you see in the US. Those cars don't ever make it to the United States because they're not competitive. You only see the top trim level in the US.
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