By on May 11, 2020

FCA sign, Image: Fiat Chrysler Automobiles

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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7 Comments on “Fiat Chrysler-PSA Merger Heads to EU Regulators...”

  • avatar

    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.

    • 0 avatar

      Haven’t you heard? The “knowledge economy” is the way of the future – because it’s the easiest one to off-shore.

    • 0 avatar

      Chrysler, Dodge, Ram, and Jeep are all Italian already. Does it make a difference that PSA (which bought Adam Opel from GM) becomes part owner too?

      I pointed out in another thread, that PSA makes few vehicles as big as compact/midsize, most are on the small size for French roads. Opel made midsize vehicles for Buick, so those are the platforms that would be shared.

      The only question is what brands those shared platforms will sport in the US. Will they be Chryslers and Dodges (or Plymouths), or Lancia, Opel, and Peugeot?

      • 0 avatar

        > Lorenzo
        PSA has already moved all the compact Opel to its own EMP1 platform, and in the process of switching its midsize Insignia (aka. Buick Regal) to EMP2 platform shared with Peugeot 508.

        I understand the plan is to move all the mainstream FCA vehicles to the PSA platforms as well since they’re newer and electrification ready (once the merger goes through).

        As for the branding in US, Opel is out of the question because of its agreement with GM. Given the cost and the limited brand recognition of Peugeot/Citroen/DS here, I would say the safe bet will be having cars reskinned/rebadged as Dodge/Chrysler.

        • 0 avatar

          Jeep is FCA’s crown jewel. I don’ think PSA has a good platform in the larger part of that market, do they?

          • 0 avatar

            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.

  • avatar

    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.

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