Indian Mahindra in pole position to drive Peugeot Scooters

Indian auto and tractor giant Mahindra & Mahindra, listed on the Bombay Stock Exchange, could buy 51% of Peugeot Scooters shares, in chronic financial difficulties for several years.

Indian auto and tractor giant Mahindra & Mahindra, listed on the Bombay Stock Exchange, could buy 51% of Peugeot Scooters shares, in chronic financial difficulties for several years.

"To accelerate the development of Peugeot Scooters, strengthen the brand and its products and give it a future, PSA has entered into an exclusive discussion with the Mahindra & Mahindra group with a view to a long-term strategic partnership", indicated this morning the CEO of Peugeot Scooters, Frederic Fabre, on the occasion of an extraordinary works council.

51% of shares

Asked by MNC about ten days ago, the, told us that the objective was "to reach a balance in 2015" by working on two axes: on the one hand "the move upmarket, with in particular the Metropolis whose take-off was disrupted by some youthful concerns, but is gaining momentum "and on the other hand" international development, especially in China ", a market in which Peugeot Scooters saw its sales increase from last year but where volumes remain low.

Peugeot Scooters, since 1898…

"The oldest motorized two-wheeler brand in the world, Peugeot Scooters has been manufacturing motorcycles and scooters since 1898", remind PSA communicators: "5th manufacturer in Europe, it is at the origin of many innovations" and was notably the "first manufacturer to have equipped its 125 scooters with an ABS braking system". The PSA subsidiary based in Mandeure (25) claims to have sold "79,000 scooters in 2013", with a "network of nearly 3,000 points of sale in Europe" and a distribution "in more than 60 countries".

"We do not comment on the rumors", also decided Mr. Thrierr questioned by MNC on the possibilities of takeover by Mahindra … This morning it is no longer a rumor but a reality, the management of Peugeot Scooters indicating that PSA has entered "into exclusive discussions with Mahindra & Mahindra with a view to a long-term strategic partnership".

As part of this agreement, Mahindra would subscribe to "a reserved capital increase in the amount of 15 million euros" and "would also acquire shares from PSA to hold 51% of the capital of Peugeot Scooters at the outcome of operations ".

This device, still in the draft stage, "would ensure Peugeot Scooters business growth which would consolidate its future", estimates the French group. The recovery plan would also include "the subcontracting of certain manufacturing or logistics operations for which Peugeot Scooters no longer has the critical size given the decline in its markets".

"Light up the future" to "continue to write our history"…

It would also be accompanied by a workforce reduction program, with in particular "a senior leave on a voluntary basis which would concern around 80 people", while the management "proposes to negotiate a performance agreement with the social partners which should allow the launch of a new vehicle in 2017 "…

This plan "sheds light on the future of Peugeot Scooters", continues Frederic Fabre, stressing that "the plan for the recovery of the activity is essential" and that "the strategic partnership with Mahindra & Mahindra would give us the opportunity to accelerate our geographic development ".

"These are all opportunities to secure the future of Peugeot Scooters and give the Mandeure site an industrial future", assures the managing director, inviting those concerned to "take it collectively to continue to write our history". . To be continued: stay connected !

Related articles

• Business – New faces at Peugeot Scooters – Used PEUGEOT

  New faces at Peugeot Scooters Peugeot’s scooter branch has just created a new department called Commerce Europe. The French brand is also associating its…

• Business – Peugeot Scooters progresses by 95% … in China – Used PEUGEOT

  Peugeot Scooters progresses by 95% … in China Faced with the decline in European markets, Peugeot Scooters is delighted with its strong breakthrough in…

• Business – Peugeot Scooters reorganizes its communication – Used PEUGEOT

  Peugeot Scooters reorganizes its communication Peugeot Scooters is reorganizing its communication with a new transversal department responsible for…

• Business – Triumph attacks the Brazilian and Indian motorcycle markets – Used TRIUMPH

  Triumph tackles the Brazilian and Indian motorcycle markets Faced with the decline of ‘historical’ markets, many motorcycle manufacturers are turning to…

• News – Four new Peugeot scooters in 2011 – Used PEUGEOT

  Four new Peugeot scooters in 2011 Peugeot obviously has ambition to spare for 2011: whether electric (e-Vivacity), 2-stroke engine (Jet Force H2i), GT…

• Interviews – Interview Lionel Favre (Peugeot Scooters): We are resuming success in our three segments – Used PEUGEOT

  Interview Lionel Favre (Peugeot Scooters): We are renewing success in our three segments With 3,229 registrations, Peugeot Scooters posted an increase of…

• Business – Peugeot Motocycles: “we will be profitable from 2007” – Used PEUGEOT

  Peugeot Motocycles: we will be profitable from 2007 After the abandonment of the Scoot’Elec, the Marketing and Communication Director of Peugeot…

• Interviews – Lionel Favre (Peugeot Scooters): Two-wheelers are the natural answer to traffic problems – Used PEUGEOT

  Lionel Favre (Peugeot Scooters): Two-wheelers are the natural answer to traffic problems With 2,046 registrations in 2017, Peugeot Scooters posted a…

• Practical – Peugeot electric scooters at Montparnasse station – Used PEUGEOT

  Peugeot electric scooters at Montparnasse station In partnership with Peugeot Scooters, the SNCF is launching in September a new electric scooter rental…

• News – New Peugeot 2014 scooters – Used PEUGEOT

  New Peugeot 2014 scooters Even though the Metropolis 400i is just starting to seduce three-wheeled scooter enthusiasts in France, Peugeot Scooters…