Late last Friday evening, an investor’s note popped into the Autocar inbox. Our old friend Max Warburton – rated as Europe’s leading automotive analyst – was making one of his trademark interventions in the often stuffy world of investment advice.
His latest note to investors was entitled "Peugeot: You Don’t Need This Chinese Deal (An Open Letter To The Chairman)". Max and his team at BernsteinResearch say they think that the share price of Peugeot-Citroën (PSA) has potential to outperform the market without the need to sell a stake to Chinese car maker Dongfeng.
With the PSA board expected to rubber-stamp the deal early this week, Max has written his note to investors partly as a letter to Thierry Peugeot, chairman of the PSA board. From the outset of his note, Max sympathises with Thierry Peugeot.
"Cher Thierry. It must be a heavy responsibility to be the Chairman of PSA and the latest in a long line of family members to lead the company. You must find a way forward for one of France's great industrial icons at a time of extreme economic weakness, intense competition and huge shifts in the global automotive landscape. You must find a way to protect French jobs and capabilities and ensure the company does not fail."