Brand Cull? Tavares Claims PSA-FCA Merger Won't Lead to Bloodbath

Steph Willems
by Steph Willems
brand cull tavares claims psa fca merger wont lead to bloodbath

There may still be a chance for a new Fifth Avenue. Carlos Tavares, CEO of France’s PSA Groupe and head of a future combined entity, claims the looming merger between his company and Fiat Chrysler will not leave dead brands scattered across the landscape.

There’ll still be a role for such flagging brands as, well, Fiat and Chrysler, the executive implied. It’s not hard to see how rumors of a brand cull could get started, considering this merger is all about finding efficiencies.

As reported by Automotive News, Tavares appeared on French television on Friday to allay fears of a massive automaker (the world’s fourth-largest) with fewer marques.

“It is part of the challenge to properly manage these brands to cover the market,” Tavares told BFM Business.

“I see that all these brands, without exception, have one thing in common: they have a fabulous history. We love the history of car brands, it gives us a foundation on which we can project ourselves into the future. So today, I don’t see any need, if this deal is concluded, to remove brands because they all have their history and they all have their strengths.”

Under Tavares’ post-2013 leadership, PSA turned itself around, soon gaining the financial clout to buy Opel and Vauxhall from a cash-hungry General Motors. Over at FCA, several marques have run into trouble of late, with Alfa Romeo’s future output recently being cut back, Maserati running aground amid a lack of attention from its parent, Chrysler shedding models like a defoliating autumn tree (does the Voyager count?), and Fiat shrinking in its home market while practically disappearing in North America.

Still, Tavares claims he’d like the PSA-FCA entity to host fewer brands than Volkswagen Group, which has 10. The PSA-FCA tie-up would bring 13 passenger car brands under one corporate umbrella. Tavares’ comment is at odds with his assurances that some marques would have to give way in the interest of efficiency.

With the merger not yet finalized and Tavares not yet in charge of the whole operation (with right-hand man Mike Manley likely overseeing North America), the future of all but the most profitable brands are still shrouded in haze. It’s a time-will-tell scenario.

[Image: Daniel J. Macy/Shutterstock]

Join the conversation
3 of 44 comments
  • Akear Akear on Nov 11, 2019

    According to recent news reports the Trump administration is reviewing the deal because the Chinese have a 12 percent stake in PSA. The deal may fall through.

    • Vulpine Vulpine on Nov 11, 2019

      From what I've read on other sites, the Chinese have a 6.5% stake in the company. When did it double?

  • Jeff S Jeff S on Nov 11, 2019

    Can Trump block this merger because FCA is incorporated as a Dutch corporation. True FCA makes Ram, Jeeps, Chryslers, and Dodges is the USA but Toyota, Honda, Nissan, and Kia make vehicles in the USA as well. Trump can tweet and talk but being incorporated in another country makes it harder to control.

  • Lou_BC ERay? A southern model will be the BillyRay.
  • Lou_BC I've never used a car buying plan service. My Costco membership did get me 1,000 cash back on my last truck.
  • Jeff S I can understand 8 cars is a bit much unless you are a serious collector. I always loved the Challenger when it first came out and now. I don't need a car like this but I am glad it exists at least for 1 more year. If I had a choice between a Mustang, a Camaro, and a Challenger I would opt for a Challenger but probably with a V-6 since it has more than enough power for most and I don't need to be burning rubber. Challenger has the classic muscle car looks, more cabin room, and a decent size trunk which makes it very livable for day to day driving and for traveling. The base models of the Dodge Challenger has a 3.6-liter V6 engine that gives you 305 horsepower with 268 lb-ft torque. The car attains 60 mph from a standstill within just 6 seconds, which is quite fast. Even with their base engines, the Challenger and Camaro are lightning-fast. The Camaro reaches 165 mph, while the Challenger can go up to 11 mph faster!
  • Inside Looking Out I would avoid American cities if I can. European cities are created for humans and Americans for cars.
  • Inside Looking Out I used True car once in 2014 and got a great deal. The difference is that you do nothing but dealers call you. No haggling but you can get the same deal browsing inventories on dealers websites. It just matter of convenience, Rich people delegate job to someone else because time costs more.