BusinessWeek.com - Asia - Mar 03, 2010PSA Peugeot Citroen S.A. (UG)
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Stuart Pearson
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Credit SuissePeugeot had pursued cooperation with Mitsubishi as a way of increasing exposure to Asia and reducing its dependence on saturated west European markets, which supply 85 percent of earnings, according to Credit Suisse estimates. The company may struggle to retain its share of sales in Germany this year as Europe's biggest car market contracts 26 percent on the withdrawal of scrapping incentives, according to Ferdinand Dudenhoeffer, director of the Center for Automotive Research at the University of Duisburg Essen.
"If this leaves Peugeot with a free hand to pursue other alliances then it's positive," said Stuart Pearson, an analyst at Credit Suisse in London with an "underperform" rating on the stock. "But if they push ahead with more half hearted collaboration with Mitsubishi it may prevent them finding the transformational deal they need with another carmaker.".
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<span class="company">Peugeot</span> had pursued cooperation with Mitsubishi as a way of increasing exposure to Asia and reducing its dependence on saturated west European markets, which supply 85 percent of earnings, according to Credit Suisse estimates. The company may struggle to retain its share of sales in Germany this year as Europe's biggest car market contracts 26 percent on the withdrawal of scrapping incentives, according to Ferdinand Dudenhoeffer, director of the Center for Automotive Research at the University of Duisburg Essen.<span class="sent"> "If this leaves <span class="company">Peugeot</span> with a free hand to pursue other alliances then it's positive," said <span class="analyst">Stuart Pearson</span>, an analyst at Credit Suisse in London with an "underperform" rating on the stock.</span> "But if they push ahead with more half hearted collaboration with Mitsubishi it may prevent them finding the transformational deal they need with another carmaker.".
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