Report: Fiat Chrysler Agrees to Merge With Groupe PSA

Matt Posky
by Matt Posky
report fiat chrysler agrees to merge with groupe psa

On Tuesday, we published a piece examining the possibility of Fiat Chrysler Automobiles merging with France’s Groupe PSA. Considering the how often FCA is in merger discussions, we treated it as little more than a well-founded rumor worth monitoring. But additional reports have come through suggesting that the deal has already been approved.

According to The Wall Street Journal, sources with first-hand knowledge have confirmed the companies are already moving forward on the union — effectively creating the world’s fourth largest automaker by volume.

While both companies have confirmed that they’ve been in talks, neither was willing to verify that a merger is afoot. But they got pretty close. “Following recent reports on a possible business combination between Groupe PSA and FCA Group, Fiat Chrysler Automobiles N.V. … confirms there are ongoing discussions aimed at creating one of the world‘s leading mobility Groups. FCA has nothing further to add at this time,” explained FCA.

PSA’s response was eerily similar, as if they had already begun coordinating on their messaging.

WSJ said PSA’s supervisory board was meeting on Wednesday to discuss the potential deal, apparently with everyone walking out giving the thumbs up — figuratively speaking, of course. We don’t even know if they use the thumbs up in France. It might be all mouth pops and snaps to show approval over there.

Assuming FCA’s leadership did the same, the new business entity is estimated to have a market value of more than $48.4 billion. Though we’d imagine the Italian-American company would be alternating between the okay hand symbol and that finger-pinching move chefs do.

Updates on the deal will come as soon as all parties have confirmed the merger is a go. Until then, we’re going to ponder whether or not PSA is the right cart for Fiat Chrysler to hitch itself to.

[Image:Daniel J. Macy/Shutterstock]

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  • Schmitt trigger Schmitt trigger on Oct 31, 2019

    Maybe Chrysler's UAW workers will copy the gilet jaunes?

  • Dal20402 Dal20402 on Oct 31, 2019

    "merge" LOL This is PSA buying Ram and Jeep, nothing more.

    • See 5 previous
    • Ghostwhowalksnz Ghostwhowalksnz on Nov 02, 2019

      @conundrum You should work on Wall St with your great analytical skills .... what you are greeter at Walmart ?

  • Jim Bonham Thanks.
  • Luke42 I just bought a 3-row Tesla Model Y.If Toyota made a similar vehicle, I would have bought that instead. I'm former Prius owner, and would have bought a Prius-like EV if it were available.Toyota hasn't tried to compete with the Model Y. GM made the Bolt EUV, and Ford made the Mach-E. Tesla beat them all fair and square, but Toyota didn't even try.[Shrug]
  • RHD Toyota is trying to hedge their bets, and have something for everyone. They also may be farther behind in developing electric vehicles than they care to admit. Japanese corporations sometimes come up with cutting-edge products, such as the Sony Walkman. Large corporations (and not just Japanese corporations) tend to be like GM, though - too many voices just don't get heard, to the long-term detriment of the entity.
  • Randy in rocklin The Japanese can be so smart and yet so dumb. I'm America-Japanese and they really can be dumb sometimes like their masking paranoia.
  • Bunkie The Flying Flea has a fascinating story and served, inadvertently, to broaden the understanding of aircraft design. The crash described in the article is only part of the tale.
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