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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.
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.
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