Blog: Dave LeggettPSA in the USA?

Dave Leggett | 14 April 2004

An interesting forum has developed discussing the issues that face PSA in contemplating a return to the US marketplace. Considerable hurdles appear to lay ahead - like getting a decent national dealer and aftersales care network in place. Also, the dollar may have recovered a little lately, but the dollar-euro rate isn't exactly favourable to European exporters to the US (Renault by contrast, has the potential advantage of using its Mexican Nissan facility for supply and utilising the Nissan-Infiniti network). And the US market is very, very competitive. Where would PSA's brands sit with their mainstream volume products? - uncomfortably squeezed between the hungry Asians and Big Three is the suspicion. Quality and reliability problems could make a foray into the US a real disaster.

But on the other hand, how can a truly 'global' player that wants to be around in the long-term continue to ignore North America? That's a hard question to simply dismiss in the negative. PSA is right to at least be looking at it. And there could conceivably be a first-mover advantage in beating Renault to the post as the US market's established 'French brand(s)'. But I wouldn't expect anything to happen in the next few years - the shareholders wouldn't like it. Better to mind the knitting for now, while quietly investigating ways in which entry with the right products could make some sort of sense when conditions are better.

http://www.just-auto.com/forums/link.asp?TOPIC_ID=5374


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