It's OFFICIAL: FCA + PSA Agree To A $50 Billion Merger — So, Now What?

It's OFFICIAL: FCA + PSA Agree To A $50 Billion Merger — So, Now What?
It's official as of Wednesday. About six weeks after initially making it known that both parties were exploring the combination of the two, the ink has dried.

Of course now it has to clear the appropriate regulatory approvals.

Obviously, we're talking about two massive "ships" that have to not only come together but figure out the right decisions to propel the fourth-largest automotive business forward. We're thinking this is going to be exceedingly difficult.

Take, for example, the brands. Which lives and which die? What about nameplates? Which avoid the chopping block?

Things are about to get real. And, we'll see if each company's CEO is able to stick to their word that approximately $4 billion in costs will be shed without job cuts or shuttering factories.



Both tasks are likely to prove difficult, as two of the industry’s oldest dynasties try to combine major European operations under the gaze of politicians and trade unions who have vowed to resist any move to cut jobs.

Success is vital to help both companies cope with a slowdown in autos demand and the cost of making cleaner vehicles to meet tougher emissions regulations...

...France’s PSA and Italian-American Fiat Chrysler Automobiles (FCA) announced a preliminary deal six weeks ago for an all-share merger that would create a company worth about $50 billion and unite brands such as Fiat, Jeep, Dodge, Ram and Maserati with the likes of Peugeot, Opel, and DS...


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PUGPROUDPUGPROUD - 12/19/2019 5:48:26 AM
+1 Boost
Rapid downsizing, major firings of redundant staff, factory closings and elimination of models. However, counter balanced by accelerated new product development and platform sharing. The man at the top has done it twice before in lightening fashion with good results...this is just a bigger sandbox for him to play in. Don't know about the long term but in the short term the combined company will be leaner, more efficient and turning out new cars fast to attract a broader customer base.


MDarringerMDarringer - 12/19/2019 8:07:59 AM
-2 Boost
Fiat for certain will exit the USA. Alfa Romeo could return to being a European brand. I'd fold Ram back into Dodge. Chrysler needs the axe or it can sell rebadged Opels...not that anyone wants them. Maserati need to be repositioned down market. Lancia needs to die. DS needs to die.


TomMTomM - 12/19/2019 7:58:56 AM
+3 Boost
At some point you can only have so many Brands in the same market. Most of the PSA brands compete with each other - more than they do with other brands. Adding FCA is overkill since they do not need any more cars - although I suspect it would be interesting if THey turned OPEL into Chrysler in the USA - although I would prefer DS cars becoming Chrysler in the USA.

GM nearly imploded over too many brands - in the same space (Middle Luxury) - and I do not see these two helping each other that much for cars - eventually some Brands will have to give.

However -they are not projecting Much increase in Profit (4.1 Billion) - and have said they will not close plants - so WHY DO THIS at all?


CANADIANCOMMENTSCANADIANCOMMENTS - 12/19/2019 10:25:29 AM
+3 Boost
Depends. They now produce over 10M cars just like the big players. More than GM and others with their combined operations. Platform sharing, common engines and switchgear, reductions in redundant staff etc. They should be able to drive a lot of profit if they can consolidate intelligently.


Section_31_JTKSection_31_JTK - 12/19/2019 4:31:08 PM
0 Boost
So I can now get my Maserati serviced at a Chrysler dealership?


MDarringerMDarringer - 12/19/2019 4:45:57 PM
-1 Boost
You always could in theory given that the Ghibli, Qporte, and Levantate are all Chrysler LX designs.


PUGPROUDPUGPROUD - 12/19/2019 6:23:40 PM
0 Boost
Of course you can have your 1988-1991 Chrysler TC by Maserati serviced at any Chrysler dealership.


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