By on January 22, 2020

The FCA-PSA merger is progressing nicely. According to Fiat Chrysler CEO Michael Manley, the joint timeline established last month is totally feasible. Both companies hoped to get this settled before 2022; Manley now believes everything could be settled within the next 12 to 14 months.

The manufacturers have inked a binding agreement — worth an estimated $50 billion — to collaboratively prepare themselves to fend against slowing global demand and the unpleasantly high cost of developing greener vehicles to appease regional emission laws. They’re also attempting to establish an effective comprehensive strategy for the numerous auto brands involved in the deal. While we speculated about Chrysler’s future yesterday, over a dozen other marques that cater to fairly specific customer groups also need to be considered. 

“Talks are progressing really well,” Mike told Reuters at the sidelines of meeting hosted by the European Automobile Manufacturers’ Association (ACEA), which he also heads.

From Reuters:

Fiat and Peugeot are now getting into the details of how the merger will work, including choosing which vehicle platforms — the technological underpinnings of a vehicle — will fit which products in a combined company.

Because customers in different locations still prefer vastly different cars, there is room for multiple platforms in a combined group, Manley said.

“That global platform is an elusive beast,” he added. “This concept of a massive global platform in my mind is almost a myth but that doesn’t mean to say we’re not going to recruit significant volume.”

Expect successive leaks and interviews over the coming months to better outline how this is all supposed to come together. Right now, Manley saying talks are running smoothly is good enough. FCA has dreamed of finding itself in this position for years; understandably, it doesn’t want anything fouling up the deal.

Thus far, both firms have promised no plant closures or worker cuts following completion of the deal. That seems like an impossible pledge to keep, and it doesn’t ensure anything in the interim period. PSA will also have one more member on the board of the combined firm than FCA, leaving many wondering how big a priority North America will be a few years down the road.

[Image: alisafarov/Shutterstock]

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21 Comments on “FCA: Merger With PSA to Be Finalized Early Next Year...”


  • avatar
    indi500fan

    I’m not familiar with the exec structure at PSA. Is there somebody like the late “Big Serge” who can ride roughshod over this thing when it’s finished?

    • 0 avatar
      Lorenzo

      Yes, the CEO of PSA is Carlos Tavares, who worked at Renault under Carlos Ghosn, and left after expressing his desire to head an automaker and was rebuked by Ghosn. Tavares ended up in charge of PSA and implemented cost controls in time to turn around PSA. He engineered the purchase of Opel from GM, and imposed cost controls that turned it into a money-making division.

      The man is an empire builder, probably the key player in the merger with FCA, which looks like it’ll be the same “merger of equals” that Chrysler had with Daimler, with PSA taking over the Daimler role. The Agnelli family business that owns a controlling stake in FCA is probably happy to turn it over to a European conglomerate and treat their stake as nothing more than stock ownership that can be sold.

      One red flag with Tavares is that his cost controls are as draconian as Ghosn’s were, and could lead to cheapening the quality of the vehicles, as was done to Nissan. Another red flag is that once the efficiencies are made, the only way left to increase revenue/profits is to goose volume the way Ghosn did with Nissan.

      • 0 avatar
        Victor

        So your take on this is, since Tavares worked under Ghosn, he is Ghosn. And that makes PSA, Nissan-Renault. Before stating that, you said that since PSA has one more board member, it is Chrysler’s new Daimler.

        Does it matter that Chrysler no longer exists, or that the merger looks nothing like DaimlerChrysler simply because there’s no Chrysler anymore, and since that PSA is neither german nor, well, Daimler? Seems like it does not. But you move on and states that the Agnelis, who have been at the helm of Fiat for over a century now, are happy to free themselves from that equity as any other stake in any other company.

        You do know none of what you said is real, right?

  • avatar
    Imagefont

    I can see that advertising campaign now:
    FCA and PSA, stupider together!

    Marketing idea: dump all brands and call everything Jeep. You’re welcome.

    • 0 avatar
      Superdessucke

      Dodge sold 97,000 Chargers in 2019. This represented a substantial increase over 2018 by about 20%. I don’t have the figures for the Challenger but using its numbers through Q3 2019, it was on pace for about 72,000 units. Combined, that’s a lot of cars. Not quite Accord/Camry/Civic territory but maybe only a town or two over at this point.

      This isn’t being reported by the mainstream automotive “media.” I will guess the reason is that it goes against the grain of the narrative that Americans are moving almost exclusively towards high profit CUVs and SUVs, something which U.S. automakers, except FCA, want, and in fact desperately need, to make everyone believe.

      But regardless, it’s pretty clear that these two vehicles are serving a rather large market which is being ignored and which we are being told doesn’t exist anymore. Hopefully the company which builds the two cars and is making money hand over fist on them is smart enough to see this at least!

      • 0 avatar
        Hummer

        Super while I strongly agree with what your getting at, you can’t forget that the Charger is picking up full-size market from the loss of the Taurus and lower trim impala.

        Now the Challenger sales on the other hand is eye popping compared to the Mustang and Camaro.

        • 0 avatar
          White Shadow

          Sorry Charlie, but the Mustang has outsold the Challenger every year, including 2019. You’re so full of misinformation that it’s almost comical. First was your lack of knowledge on Trailhawk Grand Cherokees and now this? It’s easy to read up on this stuff and learn a little bit along the way….

          • 0 avatar
            Superdessucke

            @ White Shadow – I don’t know if you’re talking to me but I never said anything about the Jeep Trackhawk, and all I did was cite sales figures. They are what they are. It’s not going to be reported, I suspect, by anybody but Lil’ D’Zee’s Kool Car Blog and other sites that don’t get invited to fancy test-drive events with hotel lodging and expensive comped meals, but the facts are the facts.

            @ Hummer – I think that’s a good point to bring up. But given the amount of marketing being put into crossovers and SUVs, I doubt all of the former full-size car buyers just moved into a Charger. I suspect many of them went into light trucks, or even a Camry or Accord, both of which aren’t much smaller than the Dodge offering, at least dimensionally. But that is definitely worth looking into.

          • 0 avatar
            Hummer

            White,

            Your a moron, I never stated the Challenger outsold the Mustang, I wanted to point out that a design that’s significantly older than its rivals are yet its still highly competitive.

            There’s no lack of knowledge on the Grand Cherokee, it’s a car chassis with 4 wheel independent suspension. It’s biggest redeeming features are its engine options, an off-road vehicle it is not.

      • 0 avatar
        Imagefont

        Hey I’d love to drive a Challenger. Hood’s too high and visibility sucks but I used to drive a ‘67 Barracuda and it bring back good memories. But they won’t sell me the V6 with a stick!!!

        PSA vehicles will not sell in the US, not in any meaningful quantities. FCA is stuck with a well deserved reputation for whatever is the opposite of quality (they devoted all their efforts over decades to earn that reputation) and PSA will do NOTHING to change that.
        Hyundai used to build crappy cars. Then they offered a 10 year warranty and got their act together.

    • 0 avatar
      Victor

      Maybe they’ll call it Le Jeep in France, and Il Jeep in Italy. Call it a day.

    • 0 avatar
      dantes_inferno

      >Marketing idea: dump all brands and call everything Jeep. You’re welcome.

      While you’re at it – you might want to dump the Jeep Renegade. The only thing Jeep about that is the Jeep badge. The rest is ALL Fiat.

  • avatar

    I am worried that Tovares will close iconic Lancia brand.

  • avatar
    dadude53

    You mean the brand that consists exactly of one model and as of 2017 is only sold in one country?

  • avatar
    Superdessucke

    Any chance of the Peugeot 308 GTi coming here? Probably not but I can at least dream.

  • avatar
    MKizzy

    Now watch PSA mess things up by trying to pawn off little Renault hatches and crossovers off as Chryslers instead of its more attractive Peugeots.

    • 0 avatar
      conundrum

      You do realize, I suppose, that PSA (Peugeot), is not the same company as Renault? What you said in ignorance is like some random Frenchperson claiming GM might flood France with F150s.

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