Wild-Ass Rumor Of The Day: PSA or BMW To Join Chrysler-Fiat Alliance?

Edward Niedermeyer
by Edward Niedermeyer

Fiat CEO Sergio Marchionne has said that he is open to further consolidation talks with any interested firms. “A partnership with a European rival is vital,” says Emanuele Vizzini of Investitori SGR, who tells Bloomberg that PSA PeugeotCitroen or BMW are the “natural candidates.” Marchionne is staying mum, but he has aknowledged that many see a Fiat-Peugeot hook-up as a “marriage made in heaven.” For now, however, Marchionne and PSA are denying rumors of hookup talks to the Detroit News. But then, Marchionne has said that Fiat needs to approach its goals “softly and quietly.” So who knows? “The Chrysler deal does nothing to solve the overcapacity problem,” says Credit Suisse analyst David Arnold. An all-European deal could “offset spiraling costs and declining volumes with savings from joint procurement, capital expenditure and research and development,” argues Arnold.

Though a Fiat-Chrysler-PSA merger would create the third-largest automaker in the world, but managing such a firm could be extremely difficult warns Sven Kreitmeir of UniCredit. Specifically because of recent government bailouts of Chrysler and PSA. And already, the French government has come out against a PSA-Fiat-ChryCo union. “I’m not convinced consolidation is the answer,” says French Industry Minister Luc Chatel “What we need to do is improve competitiveness so that we can keep automobile production in France.” Meanwhile BMW plans on continuing cooperation between its MINI brand and Fiat’s Alfa division. Otherwise, it has no comment on the current round of merger speculation.

Edward Niedermeyer
Edward Niedermeyer

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  • ZoomZoom ZoomZoom on Jan 23, 2009

    This is pointless... Oh hell, why not get Chrysler to hook up with Whirlpool or Mattel? Or maybe the Tinkertoy people? Do they still make Tinkertoys?

  • FromBrazil FromBrazil on Jan 24, 2009

    Katie you're absolutely right. God forbid (please!) that BMW get involved with any of this. I just know the Germans will f*** up anything they touch. DC was just an example. And I want to enjoy my quirky, reliable, fun and beautiful Fiats the rest of my life. German corporate culture is so twisted. I mean, there's been people in VW Brazil who've been here for 15 years and don't speak a word of Portuguese. With attitudes like that how in the world could they hook up with any other foreign companies? Engineering prowess and whatnot be damned. Unless their culture changes. (I'm sorry if that is a very broad and stereotypical statement, but they've proven it time and again). As to PSA, how on earth would that work? Peugeot and Citröen largely make clones. Clones, which overlap entirely with Fiat's own line. Anyway, the French government has already spoken and though their decision is political and xenophobic (and not technical or reality-based) in this case it'll prevent greater harm. Cheers to all.

  • Tsofting Tsofting on Jan 24, 2009

    BMW to hook up with PSA? Fuhgeddaboutit! Maybe there are beancounters who think that makes sense, but the rest of us know that it's all about the product - and the rest is about "feel" and image. Hardcore BMW buyers are very conscious about the DNA of their rides, and a hookup with PSA would spoil that - totally! So, being one of those hard core buyers, I say once more to the powers that be; think of something else, this idea must be euthanized!

  • Jnik Jnik on Jan 24, 2009

    If it's PSA, maybe we'll get Citroens sold in Chrysler dealerships! Uh, wait, forget that idea!

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