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]
A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.
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Maybe Chrysler's UAW workers will copy the gilet jaunes?
"merge" LOL This is PSA buying Ram and Jeep, nothing more.