Fiat Chrysler, PSA in merger talks, WSJ says

[Bili]

Fiat Chrysler Automobiles and PSA Group of France are in talks to combine, The Wall Street Journal reported.

The newspaper reported that people familiar with the matter said a deal between FCA and the Peugeot parent could create a "$50 billion trans-Atlantic auto giant."

An all-share merger of equals, the paper reported, is one of the possibilities. PSA CEO Carlos Tavares would lead the combined unit as its CEO, while FCA Chairman John Elkann would assume the same role at the new company, the paper reported.


More at: Fiat Chrysler, PSA in merger talks, WSJ says

 

[AlexB]

They would have among the strongest balance sheet of any Automaker with consistently over $15 billion of net cash.

 

[Bili]

30 October 2019

Reports Regarding a Potential Strategic Transaction

Following recent reports on a possible business combination between Groupe PSA and FCA Group, Fiat Chrysler Automobiles N.V. ("FCA", NYSE: FCAU /MTA: FCA), 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.

London, 30 October 2019

Comunicati Stampa | Fiat | FCA

www.press.fcaemea.com

 

[pumadog]

Let's wait and see if this leads to anything. I just hope it doesn't result in more product delays. I wonder how they would handle all those brands in Europe.

 

[Bili]

IMO much worse fit than Renault.

I don't know what PSA has to offer. 2 platforms of which better one is a B segment and 2 petrol engines with 1.2 Inline 3 and 1.6 Inline 4.

AFAIK Renault's electrification plans were more similar to FCA.


They should kill Citroen and DS brands with immediate effect.

 

[AlfaCuda]

I think it’s good although Renault seemed better. Better scale to fight VW. A very profitable European market with an inroad into Germany. More freedom for Fiat brand to enter segments that it’s absent in too.

I like Citroen. It could be paired with Lancia as a mid premium brand below Alfa Romeo. The already available scale might make Lancia viable once again.

Huge benefits for PSA. They learn about Premium and gain access to the US market.

The Chinese connection could also become useful eventually.

 

[Bili]

You can't have infinite number o brands in Europe which are covering generalist market and similar countries. Citroen is not even close to a premium brand, it's bellow Peugeot in PSA's scheme.

 

[pumadog]

With all those brands, why should there be bigger space for Lancia than now? If I judge current Euro products, I'd group in character:

Fiat Panda/Tipo – Citroen = affordable while clever
Fiat 500 – DS – Lancia = elegant, precious
Peugeot = sporty mainstream
Opel = conservative mainstream
Alfa Romeo = sporty premium
Maserati = sport luxury

The loss of Lancia has been digested easily outside of Italy and nobody would miss the DS brand if those products went back into Citroen.

I forgot Abarth, which should be treated what it really is: A sub label for sporty Fiat versions, like outside of Europe.

 

[TripleT]

PSA is a better fit to me, and a better run company....

But no one should get there shorts in a wad, these things are constantly in the works and seldom result in actions.

 

[Bili]

PSA is a better fit to me, and a better run company....

PSA is hitting their potential in Europe and is failing miserably in LATAM and China while Renault is solid in both Europe and LATAM.

But what bothers is PSA's view on car's technology content. Line mechanical tech. No proper AWD, no IRS on most cars and so on.
Plus they already have too much brands in Europe.

 

[Bili]

With all those brands, why should there be bigger space for Lancia than now? If I judge current Euro products, I'd group in character:

Fiat Panda/Tipo – Citroen = affordable while clever
Fiat 500 – DS – Lancia = elegant, precious
Peugeot = sporty mainstream
Opel = conservative mainstream
Alfa Romeo = sporty premium
Maserati = sport luxury

The loss of Lancia has been digested easily outside of Italy and nobody would miss the DS brand if those products went back into Citroen.

I forgot Abarth, which should be treated what it really is: A sub label for sporty Fiat versions, like outside of Europe.

So... Kill both DS and Citroen. Lancia is already dead.

Peugeot has nothing to do with sport. It's the first time I hear something like that. IMO they are more like a poor man's Audi.

 

[pumadog]

Well, sporty in marketing terms. Details like the small steering wheel, styling is more sporty than Opel or Citroen. But you might prefer to classify Opel/Peugeot as germanic/latin instead. I loved the 205 GTi and the new 208 finally goes that direction again after bloated 207 and feminine first 208. Fiat would be lucky to get a sibling as a new Punto.

I doubt PSA would ever kill Citroen. A combined rational brand with Panda, C3 (Cactus), Tipo, C4 Cactus would be the logical outcome.

 

[Bili]

I prefer Renault over Peugeot and they are surely more sporty when you drive them. Clio > 208.

Don't know what to say. FCA had already rejected like 5+ times in the last 5 years. So they knew something which we don't.

 

[pumadog]

Might be. But when in vacation last year with a group of friends, we rented a C3 and a Clio parallely. While I should have preferred the Clio, it just felt cheap and boring compared to the C3 with contrast roof and funky bits inside. Engines were similar, under 100 hp. I never got warm with Renaults – after the R5 which I loved as a child.

 

[Bili]

I prefer Renault's exterior design and with a new Clio V they've finally got it with interior.

 

[pumadog]

I heard so. In any case I hope Officina 83 doesn't get merged with the French style center.

 

[Bili]

I heard so. In any case I hope Officina 83 doesn't get merged with the French style center.

Speaking about design and designers. AFAIK there is a lot of ex Renault guys drawing Alfas. I never heard something similar about ex PSA guys.

 

[Bili]

Will Renault React To Fiat Chrysler, PSA Merger Talks?

News Fiat Chrysler Automobiles (FCA) and France’s PSA Groupe were talking merger won’t have surprised investors wondering where FCA might end up after its failed combination talks with Renault earlier this year, and which still might react with a counter deal for FCA.

FCA and PSA, Europe's second biggest auto maker in terms of sales behind Volkswagen, confirmed the merger talks Wednesday, which would create a $47 billion global company, and a powerful rival to VW.

The world’s leading auto manufacturers are coming under pressure to form alliances that would allow improved efficiency as global markets weaken, and huge resources are required to fund new technologies like electric cars and computer driven ones. European Union rules which kick in next year to slash carbon dioxide (CO2) emissions will cost big money too.

More at:
https://www.forbes.com/sites/neilwi...ault-react-to-fiat-chrysler-psa-merger-talks/

 

[Deckard Cain]

Might be. But when in vacation last year with a group of friends, we rented a C3 and a Clio parallely. While I should have preferred the Clio, it just felt cheap and boring compared to the C3 with contrast roof and funky bits inside. Engines were similar, under 100 hp. I never got warm with Renaults – after the R5 which I loved as a child.

The previous generation Clio interior were atrocious. This new one has vast improvements in that regard.

 

[Deckard Cain]

I preferred the merger with Renault since there was less overlap in brand positioning, and geographically Renault-Nissan brought more variety than PSA.
This merger with PSA will be a challenge, and I bet the italian unions are against this because Tavares is ruthless and there will surely be job losses at the italian plants. If there's something he is good at, it's cost-cutting and finding synergies.

Nevertheless, this will result in a group that is strong in all the major european market except Spain. Fiat and Lancia in Italy, the french brands in France and Opel in Germany and the UK.
I believe that this will lead to a decreased importance of Fiat though. It will probably just be a small car brand more focused on the 500 while Citroen will be the low cost brand of the group.

Peugeot and Opel will be the generalist brands with strength in different local markets (France, Germany/UK) while Maserati and Alfa will be the premium brands. DS will probably be discontinued since it won't serve any purpose.
I don't believe this will bring much to the US side of things though. Maybe the cash reserves can be used to invest in new Dodge and Chrysler product but I'm skeptical that it will lead to vastly expanded product range.