Tag: mergers

By on December 2, 2020

Volvo Cars’ chief executive, Håkan Samuelsson, believes a ban on gasoline-driven vehicles would be a more effective way to force groups to go electric than continuing to offer subsidies on battery-powered automobiles. The announcement comes as part of the Financial Times’ “Future of the Car Summit,” where Samuelsson will proclaim the internal combustion engine “a technology of the past.”

In related news, Volvo Cars is also in negotiations to merge with China’s Geely Automotive and has renewed its commitment toward becoming an electric-only brand by 2030. The latter issue will also be brought up during Wednesday’s Car Summit, with the CEO praising the United Kingdom’s promise to eliminate the sale of new gasoline and diesel cars that same year.

What miraculously convenient timing.

(Read More…)

By on November 19, 2020

The merger between Fiat Chrysler Automobiles and PSA Group is reportedly progressing smoothly, with the involved parties announcing general meetings for their respective shareholders on Wednesday. Scheduled to take place on January 4th, the summit is being held “in order to approve the merger of their companies to allow the creation of Stellantis, which will become the world’s fourth largest automobile manufacturer by volume,” according to a joint release.

(Read More…)

By on October 26, 2020

Fiat Chrysler and PSA Group are reportedly in the homestretch of their $38 billion merger deal and on the cusp of becoming Stellantis  the planet’s fourth largest automaker by volume. The plan is to join forces to help absorb the monumental cost of developing alternative energy vehicles (like EVs) without losing any brands or shuttering any facilities that weren’t previously marked for death. We’re inclined to believe it when we see it, however, as the duo are also targeting an annual cost reduction of 5 billion euros (about $5.91 billion USD).

It also hasn’t been a smoothest of regulatory rides. After spending years hunting for the perfect partner, FCA and PSA had to adjust the terms of their existing deal to contend with losses incurred as a result of the pandemic response. But it all seems to be fine now and the European Commission has given approval and that’s what matters in finally getting this deal done.

(Read More…)

By on October 19, 2020

When they’re not preparing to sell an ultra luxury super car brand or creating a new line of electric vehicles, they’re planning a big time merger for a larger piece of the heavy-duty truck market.

It’s only gonna cost them a few billion dollars.

(Read More…)

By on September 15, 2020

Fiat Chrysler Automobiles and PSA Group announced a few revisions to their planned merger on Monday. Unfortunately, ditching the Stellantis moniker when they become the world’s fourth-largest automaker wasn’t among the changes listed. Because it still sounds like a medication for people with arthritis.

Ask your doctor is Stellantis is right for you. Don’t take Stellantis if you’re pregnant or nursing.

As the duo wants to maintain a 50/50 split, they need to address “the liquidity impact on the automotive industry of the COVID-19 pandemic while preserving the economic value” of their original agreement. That has left PSA maintaining control of French parts supplier Faurecia. A special dividend to be distributed among its shareholders before closing is set at 2.9 billion euros (which was previously listed as €5.5 billion) while PSA’s 46 [percent] stake in Faurecia will be distributed to all Stellantis shareholders following the newly formed board’s approval. (Read More…)

By on August 28, 2020

PSA

Hopefully you’re all familiar with Stellantis — the chosen name for the sprawling automaker birthed from the merger of Fiat Chrysler Automobiles and France’s PSA Group. With the merger expected to wrap up in the first quarter of 2021, Stellantis is all about capitalizing on the respective partners’ strengths in the name of efficiency.

And, because of this strategy, FCA has reportedly issued a stop-work order on any development of future small or subcompact cars. The future of FCA small cars is now French. (Read More…)

By on August 18, 2020

canoo

Canoo Holdings Ltd., creator of highly configurable electric vehicles built atop its proprietary “skateboard” platform, plans to merge with a blank-check firm in order to seek investor cash. If past examples of EV startups going public are any indication, Canoo will soon be valued at eleventy bazillion dollars, give or take a few bucks.

On Tuesday, the company announced a tie-up with Hennessy Capital Acquisition Corp. IV, a special purpose acquisition company, in order to get itself a listing on the Nasdaq. (Read More…)

By on August 17, 2020

nissan

Romance was not in the air when Japanese officials attempted to spark a merger between troubled automaker Nissan and its far healthier rival, Honda, a report in the Financial Times claims.

According to three sources, the effort to bring both automakers to the table — a high-level decision apparently originating in the Japanese Prime Minister’s office — went nowhere. Can anyone imagine a reason why Honda would turn up its nose at such an idea? (Read More…)

By on July 16, 2020

On Thursday, Uber Technologies Inc. announced the acquisition of transit software company Routematch — suggesting the ride-hailing giant may soon take up busing as a hobby.

Don’t expect it to supplant your local transit authority overnight, however. Routematch clients tend to be dial-a-ride shuttle services (see: paratransit) seeking to outsource the management of daily operations. The company offers analytics, computer-aided dispatching, route scheduling/planning, real-time vehicle tracking, automated fare collection and applications for customers intended to make finding transport easier. Much like Uber, it operates as the go-between between customers and the services they want.

It doesn’t actually own any of the businesses it effectively oversees, making this a match made in heaven.  (Read More…)

By on July 15, 2020

2020 Ram 1500 EcoDiesel

The coming year is expected to be the first of many for a new group created through the imminent merger of Fiat Chrysler and France’s PSA Group. As the process to blend the two automakers continues, the two partners have revealed what their combined operation will be called.

Stellantis. (Read More…)

By on June 26, 2020

PSA Group CEO Carlos Tavares has bucked the notion that his company’s merger agreement with Fiat Chrysler Automobiles needed its terms massaged. Living through the coronavirus should be proof enough that automotive partnerships are essential for weathering the coming economic storm, and that governments shouldn’t stand in the way — or so goes the theory.

During PSA’s annual shareholder meeting on Thursday, the CEO suggested that the poor condition the global auto industry finds itself in makes this a poor time to discuss the issue. Tavares believes the unsavory conditions created by COVID-19 makes cost savings even more vital and that partnering with another automaker is its best bet to stay healthy. “The merger with FCA is the best among the solutions to cope with the crisis and its uncertainties,” he said.  (Read More…)

By on June 10, 2020

Executives from Fiat Chrysler Automobiles (FCA) and PSA Group are reportedly concerned that their companies are in for an extensive probing by the European Commission before their planned merger can take place. Ideally, the duo have said they want to finalize the deal early in 2021, but the prolonged investigative dive may force them to readjust that timeline.

The European Union has historically been a big fan of antitrust investigations and often tries to predict future business actions to address how newly formed organizations might impact the market overall. It’ll be a difficult task, what with automotive sales suppressed by coronavirus lockdowns and the global economy looking particularly grim.

Few are under the impression that the merger will be blocked, however.  (Read More…)

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. (Read More…)

By on March 26, 2020

peugeot

Following reports from France that the merger between PSA Group and Fiat Chrysler Automobiles could be upended by the coronavirus, PSA announced that the media got this one all wrong. While the French automaker admitted that economic problems stemming from the outbreak are indeed concerning, it reiterated its commitment to safeguarding employment while adding that a merger makes even more sense now than before.

Still, there are valid reasons to question the current state of the merger agreement established in December via a memorandum of understanding. COVID-19 has sent global markets into a tailspin, with PSA and FCA seeing their share prices seesawing in the wrong direction over the last two weeks.  (Read More…)

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.  (Read More…)

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