Jeep Parent Fiat Chrysler Agrees to Merger With Peugeot Owner PSA

  1. JAY

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    Fiat Chrysler and Peugeot Owner PSA Agree to Merge

    https://www.motorauthority.com/news...-peugeot-owner-psa-reportedly-agree-to-merger

    Fiat Chrysler Automobiles and France's PSA Group, which controls the Citroen, DS, Opel/Vauxhall and Peugeot brands, reportedly agreed to the terms of a merger on Wednesday, according to The Wall Street Journal. PSA's board of directors has approved the deal, FCA's board is meeting on Wednesday, and Exor, the Agnelli family holding company that controls FCA, is scheduled to meet Wednesday night.

    The merger of the two automakers would create a $48.4 billion global goliath that would be the fourth largest carmaker in the industry.

    It's unclear how the merger or combined operations would be structured if FCA approves the deal. However, WSJ reported that the new board will include six members from PSA and five from FCA.

    The deal is said to have Peugeot CEO Carlos Tavares as the head of the combined automakers while current FCA chairman John Elkann would continue in the same role at this new company. Tavares is widely credited for turning around European automaker Opel after the brand was purchased from General Motors in 2017 after years of losing money. Opel reported a profit just 18 months after its sale to PSA.

    PSA Group has eyed a return to the U.S. after a hiatus for more than two decades. The automaker already operates a small car-sharing service called Free2Move, which is largely confined around major U.S. airports, and Peugeot is confirmed to arrive sometime in the next decade.

    Elkann courted PSA before talks heated up with rival Renault last year. Reports indicated that FCA originally rebuffed PSA's proposals for a merger because it didn't solve Fiat's cash-crunch in a weakening European market and exposed both automakers to deepening manufacturing and laborer deficits in Italy and France. It's unclear what, if anything, has changed since that deal reportedly fell apart last spring.

    PSA and Fiat Chrysler currently operate a joint-venture to produce commercial vans: the Fiat Ducato, Peugeot Boxer, and Citroen Jumper.

    In May, Fiat Chrysler Automobiles attempted a merger with French automaker Renault for a 50/50 deal, but it fell apart. Reports indicated that the French government's stake in Renault drove an insurmountable wedge between the two automakers with politicians looking for assurances that no factories would close in France as a result of the merger. The French government owns a 15-percent stake in Renault, including voting rights. FCA was said to be in talks with Renault as late as August.
     
  2. mdrideout

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    I guess this solves FCA's problem of not having any affordable / economical sedans to produce (which will be a problem if a recession hits). FCA really only has Jeep for small economical crossovers. Peugot's line would fill in the gaps nicely. I can't imagine this will impact the Gladiator / Wrangler / or Ram lines in any way. It might add some more platforms to underpin expanding the Jeep family with even more options.

    I am predicting a Jeep based on the Peugeot 2008

    2019-peugeot-2008.jpg
     
  3. Mkcagle

    Mkcagle Well-Known Member

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    Could make for some interesting new models.
     
  4. Hootbro

    Hootbro Well-Known Member

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    I do not see it as beneficial to the legacy Chrysler brands in the long run. They will bleed the cost savings at the sacrifice of USA operations before they touch European ones. Also, FIAT could not make a go of it with their brand relaunch and I do not see it happening with a new parent company either.

    PSA also has baggage with Iran's IKCO joint venture that may raise scrutiny of any supplier or parts content issue with anything they try to bring over here even if final assembly was done elsewhere but has some Iran parts content.
     
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  5. cgoodwin0990

    cgoodwin0990 Active Member

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    As a YJ owner I'm worried jeeps will get some awful transmissions again... The BA 10/5 from Peugot was pretty terrible. Maybe they'll bring that back for the next "heritage" jeep model - a crappy transmission in addition to the FCA electrical gremlins ;)
     
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