Report: Fiat Chrysler, PSA on Cusp of Binding Merger Pact
Italian-American auto giant Fiat Chrysler and French automaker PSA Group could sign a Memorandum of Understanding on Wednesday, if reports out of Europe prove true.
The two automakers embarked down the road to a 50:50 tie-up in October, with both partners aiming for an MoU before the end of the calendar year. This most recent report comes on the heels of various thumbs-up given by key players in the pending marriage.
According to Reuters, the corporate embodiment of the Peugeot family has given the MoU their blessing, just one day after the French government, which owns a 12-percent stake in the automaker, gave its own green light.
The Peugeot family holds just under 14 percent of the automaker’s shares via two holding companies: Établissements Peugeot Frères (EPF), and a property and finance entity called FFP.
On Monday, Bloomberg reported that board directors from both automakers would meet Wednesday to discuss terms of a binding MoU after the French government signed off on the mildly revised plan. Earlier, French shareholders had expressed concern about the looming deal, demanding that France be given assurances that the country would retain a majority on the combined entity’s board if proposed CEO Carlos Tavares (currently CEO of PSA) took a hike for some reason.
Both FCA and PSA will have five board members apiece under the proposed plan, with the CEO being the 11th member.
With French government resistance being a factor in the scuttling of the proposed FCA-Renault merger, winning the approval of the country’s leadership removes a major hurdle. And with the Peugeot family now on board, the merger could be well underway by the New Year.
[Image: Fiat Chrysler]
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Have to give high marks to the folks at Auburn Hills. They've gone through so many transitions of ownership and organizations and still cranking out some decent stuff.
The French will own one-third of the US auto industry. Let's thank Mary Barra for selling Opel to PSA, which enabled them to take over FCA. GM will now be in fifth place among the world's carmakers. Read about GM shrinking to fifth place in the article below. https://www.cnbc.com/2019/12/16/once-worlds-largest-automaker-gm-retreats-overseas-as-others-take-the-lead.html
Any word on whether Peugeot will move to buy the Detroit Lions? After all, if they are buying Chrysler, why not buy the Detroit Lions while they are at it? The Lion's logo and Peugeot's Lion are very similar. Just like Chrysler can't seem to make it on their own, since Iacocca vengefully gave the CEO job to GM exec Eaton (instead of brilliant Bob Lutz), and Eaton gave/sold Chrysler to D-Benz (at considerable benefit to himself), the Detroit Lions can't seem to make it under the (mis)stewardship of the Ford family. Rename Ford Field "Palais de Peugeot", and make the Lions a serious contender, instead of a punching bag for other NFL teams. I think this would an excellent way to 'consummate' the 'marriage of equals' Making the Lions winners would show that Peugeot is a force to be reckoned with.
This will buy them another 10 years