FCA: Merger With PSA to Be Finalized Early Next Year
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]
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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Any chance of the Peugeot 308 GTi coming here? Probably not but I can at least dream.
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.