Schlagwort-Archiv: auto

Trump, Juncker and the China Tariffs

Early this year the US president Donald Trump has imposed tariffs on washers. In March tariffs on steel and aluminuim followed. As Donald Trump threatens with tariffs on cars and other products the situation escalates.

Today Donald Trump said he wanted trade with EU without tariffs at all. But why all this stories. Tariffs up, tariffs down and escalating trade negotiations?

China is an upcoming nation with a very succesfull history. It was the largest country with the biggest economy globally until the end of the 18th century. The invention of foundry technology and mass production, paper money and the calculator are devolopments of chinese people. After the two opium wars the chinese fall.

The last 30 years chinese economy finds traction, supported by western companies which finds cheap workers in China producing goods for the west. Western countries supports the situation which delivers cheap high quality and high tech products to their stores.

China becomes the production hub of the world. But with the production, also knowledge and development finds it‘s way into chinese companies. In old tradition of discipline and endurance chinese ingenieurs began to develope their own products. China of today is the second biggest economy with the most innovative industry globally. It‘s the leading country of solar technology and the leading chip producer globally. It‘s army has carriers and is the second strong behind the army of the USA. China is on the way to build its own space station and planing landings on the moon, plays a leading role in electro vehicles and 3D printing.

But all those developments are from a country that competes to the systems of the western states. China is still a communistic nation. Differences between the western nations and China are big. Cultural cooperation between China and the western nations are still difficult. The western countries can‘t integrate easily China into their cultural system. So USA has to defend itself to keep the world‘s leadership. The situation of China is better than the situation of USA. As USA starts to impose tariffs on chinese goods the chinese starts to buy companies or plants which produce the goods they wanted to import in EU and USA. For chinese this has a doubled effect. First they circumvent the taxes. The second effect is, that they can buy new technology and patents, so they can change production technology and demand fees for the licenses. So USA strengths the control of mergers with CIFIUS.

China has a lot of people with a big domestic demand. It has capacity enough to sell it’s goods to the own people. With the big population of India in the neighborhood the demand strengthens.

Also the financial situation looks better for the chinese.

The US debt is 105,42% of GDP, personal debt is up to 134% reaching 19 trio $ as GDP is more than 20 trio $.

 

The chinese government debt to GDP ratio for 2017 increases to 47,6% the last 20 years.

But it‘s corporate debt widens dramatically, so the banks had to regulate lending conditions. Chinese has to watch it’s bad loans related to corporate lending. Both the USA and China are widening the credit gap.

The chinese answer to taxes on goods for the USA was taxes on agriculture products from the USA. So the farmers of the USA were beaten. Today Donald Trump and Jean Claude Juncker made a deal that there are no tariffs on european cars and different other european products exported from Europe to the USA and that the EU widens the import of US soya products. „Soy beans is a very big deal.“: president Donald Trump remarks at the press conference after the meeting with Jean Claude Juncker. It looks like the USA wanted to start action against China with an old ally, the Europeans. Will Europe follow the course of USA?

Chinese see the Dongfeng and PSA deal as rescue deal

Geschrieben von Friedrich Bier Mi, März 12, 2014 08:19:31
PSA-Peugeot 2013 Results

€54.1 billion in consolidated revenues, down 2.4% on 2012. Automotive Division revenues down

4.8% to €36.5 billion.

Consolidated recurring operating loss limited to -€177 million, with a recurring operating loss of –

€1,042 million for the Automotive Division.

Significant reduction in cash burn, with operating free cash flow2 of -€426 million vs – €3 billion in

2012.

-€4,148 mio in net debt at 31 December 2013.

http://psapeugeotcitroen.isebox.net/backintherace/en/

Summary Income Statement

In € millions 2012* 2013
Revenues 55,446 54,090
Recurring operating loss**As a % of revenues -560-1% -177-0.3%
Net loss, Group share -5,008 -2,317

*Reflects the application of IFRS 5 with respect to the sale of Gefco following the closing on 20 December 2012.

**Reflects the application of IAS19R with respect to the Employee Benefits beginning in 2013 (impact of €16 million on consolidated recurring operating income at Group level, of which and of €8 million on Automotive Division recurring operating income); and reflects the application of IAS 36

http://psapeugeotcitroen.isebox.net/backintherace/en/

“We have gone through some very challenging years for the European automotive industry, which have added to the Group’s structural difficulties, notably its over-dependence on Europe. We vigorously implemented difficult restructuring measures which are now starting to bear fruit. We also launched core models this year that have exceeded their initial sales targets. The globalisation process is proceeding apace, with in particular an excellent performance in China.

In 2014, PSA Peugeot Citroën expects growth in automotive demand to be slightly positive at around 2% in Europe and around 10% in China, with a 2% decline in Latin America, and a stable market in Russia.

Inventory of new vehicles at 31 December stood at 384,000 vehicles, representing 62 days of sales, down 32,000 units from 31 December 2012, in line with targets.

In Latin America, sales rose 7% to 303,000 units, for a market share of 4.9% overall, albeit with wide variations among the countries.In Argentina, the Group maintained its growth momentum, with sales up more than 27,8% year-on-year and the newly launched Peugeot 301 and Citroën C4 Lounge exceeding forecasts. Nevertheless, import restrictions and the highly negative exchange rate environment are expected to weigh on the Group’s growth in the region in 2014.

In Brazil, demand declined for the first time in ten years, by 1.5%, while the negative impact from the real was sharply detrimental to the Group’s results.

Sales in Russia fell 22.3% to 61,100 units in a market down 5,4%, with a major adverse impact from the unfavourable rubble-euro exchange rate. Latin America and Russia are two regions that require improvement by optimising costs, streamlining the model ranges and increasing local integration in order to to reduce regional exchange rate sensitivity.

In 2013 the China market rose by 26% to 550000 units and market share improved to 3,64%. The Dividend paid rose by 19% to 100 mio €. DPCA profit attributable to PSA Peugeot Citroën came to €187 million for the year

The second Chinese joint venture, CAPSA, launched the DS line in the local market with the DS5, DS4, DS3 and the DS3 Cabrio. After going on sale in October, the first orders have exceeded expectations.

 

Faurecia: sustained expansion outside Europe and a reduction in net debt

In € millions 2012 2013
Revenues 17,365 18,029
Recurring operating income 516 538
As a % of revenue 3.0% 3.0%
Consolidated profit 185 143

Banque PSA Finance:

In € millions 2012 2013
Net banking revenue 1,075 891
Revenues 1,910 1,773
Recurring operating income 391 368

http://psapeugeotcitroen.isebox.net/backintherace/en/

Banque PSA Finance’s performance reflected tough conditions in Europe, with net banking revenue down 17% to €891 million, which reflected the cost of financing and the decline in vehicle sales. The bank’s penetration rate remained at a high level of 29.1%.

In 2014, PSA Peugeot Citroën expects growth in automotive demand to be slightly positive at around 2% in

Europe and around 10% in China, with a 2% decline in Latin America, and a stable market in Russia.

PSA-Peugeot declined from 28 € from July 2011 to nearly 4,50 € in October 2013 and increased then to 13,52 € at 05.03.2014. http://www.finanzen.net/chart/Peugeot

PSA has an egreement with french unions not to close any factory in french.

http://www.reuters.com/article/2014/03/03/us-peugeot-ceo-idUSBREA2216P20140303?type=companyNews

If PSA-PEUGEOT could realise its forecast for China and solve its problema at the European market it could be a good investment. I only hope the Chinese don’t follow the strategy: Buy the patents then sell the companies.