The rumour mill is in top gear today as a leaked document suggests that struggling JLR is to sell to the French car giant Peugeot.
Its understood a document outlining the two companies joining forces along with the cost saving benefits is already is circulation within the media.
However, despite denying the rumour, spokesman Pierre-Olivier Salmon (Peugeot) added: “We are generating the cashflow necessary to pay for our future. If an opportunity comes, like Opel (Vauxhall), we will consider it.”
PSA chairman Carlos Tavares has made no secret of his desire to either merge or acquire struggling UK-based luxury car manufacturer JLR.
During an interview with Autocar India in April, he said he believed it would be good for PSA to have a luxury brand and that the company was “considering all opportunities”.
Both companies have denied the latest rumours, but sources inside JLR have told the Press Association that despite public statements, “things are moving quickly behind closed doors”
Automotive expert Prof D Bailey is quoted to have said…to have a document like this in circulation at the two firms points to the fact things are very far down the line with either a sale or acquisition.
Tata, JLR owners have ruled out the sale but have not made a detailed statement.
Earlier this year JLR published losses of £273M for the last quarter of 2018 siting Brexit and the slow down in China and has to write down its assets to the tune of £3.4b. Many top business analysts have been very blunt and said JLR need to look closer to hope for the reasons behind the losses blaming poor management decisions. There no getting away from the fact that JLR were late to the hybrid party and have completely lost their once manopoly of the 4×4 utility market to the Japanese and now even Ford and VW
Mean while the Peugeot group, PSA going from strength to strength and has taken struggling Vauxhall in just 2 years.
One thing is for sure….JLR can not continue as they are….the new Defender Launch in 2020 may well be either the make or break moment!
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