Fiat Chrysler Said 'No Thanks' to a PSA Merger, Report Claims
Recent speculation of a potential merger, partnership, or alliance between France’s PSA Group and Fiat Chrysler might be pointless, as the offer has already occured, a report in the Wall Street Journal suggests.
Sources familiar with the matter claim PSA approached the Italian-American auto giant earlier this year in the interest of merging the two companies. Apparently, it wasn’t the first time PSA called up FCA for a hookup. The answer was the same.
The energized PSA Group, fresh from taking Opel and Vauxhall off General Motors’ hands, has made clear its desire to expand its global footprint. At the recent Geneva Auto Show, PSA CEO Carlos Tavares was looking to swipe right on any major automaker that could help open new doors for the French company — especially in the West.
A merger would certainly help PSA’s plan to return the Peugeot brand to the North American market by the middle of the next decade. FCA, it seems, will not be that dance partner.
According to WSJ, talks have since ceased between the two automakers.
FCA brass reportedly didn’t like the fact that a merger would increase PSA’s access to Europe’s “mature” market. Meanwhile, the Agnelli family — which holds a controlling stake in FCA — didn’t like the idea of a takeover financed with PSA stock. So close on the heels of the Opel acquisition, the French automaker would likely require the use of equity to complete the transaction in the interest of keeping debt levels low.
Still, FCA CEO Mike Manley maintains that he remains open to any tie-up that would make his company stronger.
[Image: Fiat Chrysler Automobiles]
Maybe FCA needs to specify who they have the urge to merge with because they have been begging for a partner for a few years now.
unless theyre swapping stock and theres no debt involved its not worth it.
I am happy FCA refused Peugeot's advances. I love FCA,and would, and do buy their brands. I am sure they can make it all on their own with a little better management and product availability. I think they have the potential to do well,and I will always support FCA. I am not a Peugeot fan. Honda,Mitsubishi and Subaru,are small companies,and FCA outsells all 3 of them ,so why can't they do it alone. If FCA does merge,I would love it to be either Subaru or Mitsubishi.
It crossed my mind that, as FCA is enjoying considerable success, the time when someone could grab Jeep on the cheap has passed. If I was Mike Manley, I might consider taking a page from PSA's book and going shopping for "troubled assets" myself. Ford is clearly bleeding out in South America. Besides abandoning heavy trucks, they are abandoning both the Fiesta and Focus in those markets, leaving only the Ecosport, Ka and Ranger produced on the continent. Last summer Ford was reportedly shopping their South American operations to both VW and FCA. Meanwhile Barra is "exploring alternatives" for GMs loss making South American operation. In South America as a whole, market share by OEM. Renault-Nissan 18% GM 15% VW 13% FCA 11% Hyundai-Kia 9.7% Toyota 9% Ford 7.9% Honda 4.4% PSA 3.7% Mazda 1.7% I see a couple candidates with deep pockets from other parts of the world that could beef up their South American presence by picking up GM and Ford "distressed assets" on the cheap.