Fiat Chrysler-PSA Merger Heads to EU Regulators

Steph Willems
by Steph Willems
fiat chrysler psa merger heads to eu regulators

The European Union’s antitrust regulators could easily allow the proposed $50 billion merger between Fiat Chrysler and France’s PSA Group to sail onward unopposed… or decide to throw a wrench into the works.

Both companies started funneling the necessary applications to the European Commission back in February, but Monday brought word of a decision date: on or before June 17th.

In a filing reported by Reuters, the European Commission indicated that both automakers sought EU approval on Friday. Following an investigation to see whether the corporate marriage is on the up and up, regulators could issue a thumbs-up, or hold up everything with a four-month investigation.

As reported by Automotive News Europe in February, two early areas of concern cropped up; those being the sale of small cars in southern Europe, and the region’s commercial van market. Combined, the two companies share 46 percent of sales in the latter camp and 35.1 percent of the former. PSA boss Carlos Tavares said at the time that he didn’t see any reason for concern.

“But our stance is very simple: Whatever we have to discuss or modify, we will,” Tavares said.

Under the merger, which both companies hope to have in place early next year, PSA’s boss would serve as chief executive of the whole operation. John Elkann, chairman of FCA, would see his purview extend over PSA’s former real estate, too. Apparently, the combination of the two companies wouldn’t see any brands shed from either entity, though it remains to be seen just how unimpeachable that promise really was.

The binding merger agreement between the two companies was signed last December. Both automakers say 40 percent of the savings expected to arise from the pair-up will come from platform and technology sharing.

[Image: Fiat Chrysler]

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  • Akear Akear on May 11, 2020

    Soon the French auto industry will be bigger than the American. Nobody seems to care. That is the same attitude the British had over 40 years ago. We know how that turned out.

    • See 4 previous
    • Varezhka Varezhka on May 15, 2020

      @jthorner Jeep GC is finally moving to the Alfa's Georgio platform the last we've heard (and ditching the old Daimler Chrysler underpinning). Wrangler's not going anywhere. Everything else can go PSA no problem.

  • Jthorner Jthorner on May 14, 2020

    Merge to survive is going to be the way of the automotive world for at least the next few years. Expect to see at least a 50% contraction in the number of corporations making automobiles within the next 2-3 years. Toyota will make it and may add a few brands. VW has proven it knows how to acquire brands/companies and will probably make it. PSA/FCA will happen and may yet add a Japanese brand to the mix. BMW could easily end up under the VW umbrella. MBZ is a question. Nissan? Honda? Kia? Volvo? GM and Ford are both ripe to join up with somebody, perhaps even each other.

  • Conundrum Can't see that the Espada chassis had much to do with the Miura. The Miura had a rear-mounted transverse V12 with the transmission and final drive all part of the engine block. So it's a bit of a stretch saying the north-south V12 and regular transmission Espada chassis was related to the Miura. It looks to be no more than an update of the 400 GT. And short and long-arm independendent suspension was hardly unique -- a '53 Chev had that in front, it was standard for years on most cars that didn't have Mac struts. The Brits call SLA suspension double wishbone, so Honda thought that sounded more mysterious than SLA and used that terminology in ads, but it's the same thing. Only a few mid '30s cars had same length upper and lower A-arms like a '36 Chev, before the obvious advantage of a short upper arm for camber control was introduced. Of course Ford used a dead beam front axle until 1949, so it was last to climb out of the stone age.Do you have a link to a reference that says the Miura and Espada chassis were related?
  • FreedMike One of the things that we here in North America often forget about Europe is that it's a COMPLETELY different world to drive in. Imagine driving in the downtown area of the city you live in 24/7, and never leaving it, and you have a decent simulation of what it's like to drive in a place like Paris, or London, or Rome - or Manhattan, for that matter. As far as the "dystopia" is concerned, I don't really see it that way. This isn't made for people living in the 'burbs - it's for urban dwellers. And for that application, this car would be about perfect. The big question is how successful the effort to provide large-scale EV charging in urban areas will be.
  • Matzel I am hoping that Vee-Dub will improve the UX and offer additional color options for the 2024 Mk8.5 refresh for Canada. Until then, I'll be quite happy with my '21 GTI performance pack. It still puts a smile on my face going through the twisty bits.
  • Stanley Steamer There have been other concepts with BYOT, that I have always thought was a great idea. Replacing bespoke parts is expensive. If I can plug in a standard 17" monitor to serve as my instrument panel, as well as speakers, radio, generic motors, batteries, I'm for it. Cheaper repair, replacement, or upgrade costs. Heck I'd even like to put in my own comfy seats. My house didn't come with a built in LaZboy. The irony is that omitting these bespoke items at the point of sale allows me to create a more bespoke car as a whole. It's hard to imagine what an empty rolling monocoque chassis would look like capable of having powertrains and accessories easily bolted on in my garage, but something like the Bollinger suv comes to mind.
  • Iam65689044 Sometimes I'm glad the French don't sell in America. This is one of those times.