Fiat Chrysler Automobiles and Groupe PSA comment on merger

0

In October 2019, Groupe PSA and FCA announced plans to merge into the world’s fourth-largest OEM. Groupe PSA controls brands including Citroën and Peugeot, while FCA manages Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Lancia, Maserati, and Ram Trucks, among others. While there had been rumors of a merger earlier in 2019, initial talks failed to deliver a deal. However, Groupe PSA CEO Carlos Tavares and FCA CEO Mike Manley have been close friends for the last decade and they prevented negotiations from stalling completely.

Target markets for this automotive giant include North and Latin America and Europe, particularly in the luxury car, SUV, mainstream vehicle, and light commercial truck spheres. They will also unite to take on established brands in autonomous-driving technologies, EVs, and digital connectivity.

The shareholders of each group will own half the equity of a new entity under a Dutch parent company. It will retain a strong presence in its core markets across Europe and North America.

Carlos Tavares said, “This convergence brings significant value to all the stakeholders and opens a bright future for the combined entity. I’m pleased with the work already done with Mike and will be very happy to work with him to build a great company together.”

Mike Manley added, “Both companies know each other very well and the personal rapport is excellent, so we have been able to move quickly to get to this stage. I’m delighted by the opportunity to work with Carlos and his team on this potentially industry-changing combination. We have a long history of successful cooperation with Groupe PSA and I am convinced that together with our great people we can create a world-class global mobility company.”

Share.

About Author

mm

Liam is a freelance writer and sub-editor for The Daily Telegraph. He has written 70 books on subjects ranging from the history of Ferrari and Formula 1 to the world’s most famous TV cars. He has edited another 40 books, including the Discarded Science series by Hugo Award-winning author John Grant. He is also the author of eight screenplays, two of which are now in pre-production.

Comments are closed.