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BREAKING: FCA Agrees To Merger With PSA Groupe:

Merger Would Make Fourth-Largest Automaker In The World...

The Detroit Free Press is reporting that Fiat Chrysler Automobiles (FCA) and that French automaker PSA Groupe, who is best known for the French car brand Peugeot, have struck a deal to merge the two companies. You might recall earlier this year, FCA was in talks about a merger with Renault-Nissan-Mitsubishi Alliance before walking out on talks. Now, it seems that FCA has found a partner to share development, technology, architectures, and the ongoing cost of regulatory compliance.

2019 Peugeot 3008 GT. (Peugeot).

The merger would make the new company, the fourth-largest automaker in the world according to the Wall Street Journal (WSJ). The WSJ also confirmed that it looks like both companies have agreed on a merger agreement. The combined sales of FCA and PSA last year of 8.7 million vehicles, would outrank General Motors (GM) who had a global total of 8.4 million vehicles. 

2019 Jeep® Grand Cherokee Limited X. (Jeep).

According to Reuters that a merger between FCA and PSA could create a “$50-billion giant better placed to tackle a host of costly technological and regulatory challenges facing the global auto industry.”

FCA released a brief statement Wednesday, “Following recent reports on a possible business combination between Groupe PSA and FCA Group, Fiat Chrysler Automobiles N.V. confirms there are ongoing discussions aimed at creating one of the world‘s leading mobility Groups. FCA has nothing further to add at this time.”

2020 Dodge Challenger R/T Scat Pack 1320. (Dodge).

The proposed merger comes amid FCA’s negotiations with the United Auto Workers (UAW) over their new national contracts. However, it is doubtful that it will have an impact on the current talks between the two sides. But it will be raising a lot of questions for current FCA/UAW employees. 

Sources are saying that a final deal is not certain just yet. We do know that all large mergers do take time and can face tons of regulatory scrutiny, as we have seen with global mergers in the past. Sources are also stating that it is likely, that the new company could have its headquarters located in the Netherlands while continuing with the current regional headquarters for operations in the U.S., Italy, and France.

New Citroën C3 Aircross Compact SUV. (Citroën).

Analysts have been stating that Peugeot has been looking at making a return to the U.S. market and that FCA’s current Chrysler/Dodge/Jeep/Ram (CDJR) dealer network might be a key element in the brand’s return. However, FCA’s own Italian-based brands (FIAT and Alfa Romeo) have struggled to gain traction. FCA has recently cut its best-selling FIAT vehicle, the Fiat 500 from its 2020 model year lineup and has been closing down many of its stand-alone FIAT studios and moving the FIAT brand into already secure CDJR dealerships. Could Peugeot fit into that equation? We honestly don’t think so.

2019 Fiat Argo HGT 1.8. (FIAT).

Currently, PSA Groupe owns the brands of Peugeot, Citroën, DS Automobiles, Opel, Vauxhall, as well as several other mobility and service identities.

We will continue to bring you more up to the date information about the purposed merger as it breaks. So stay tuned.

What do you think of the purposed merger? Leave your comments below.

 

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Robert S. Miller

Robert S. Miller is a diehard Mopar enthusiast who lives and breathes all that is Mopar. The Michigander is not only a Co-Editor for MoparInsiders.com, 5thGenRams.com, and HDRams.com but an automotive photographer. He is an avid fan of offshore powerboat racing, which he travels the country to take part in.

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