FCA and PSA formally agree to merger:Merger Wednesday

[AlexB]

Hmh...

So... Does he have a guaranteed Executive Chairman seat all the time while Exor's share exceeds 10% of Stellantis?

As long as there no ''super majority'' (67% no vote) vote against him/or Exor successor by at least 50% of the Stock outstanding,

 

[AlexB]

@AlexB

Can you please explain me you reasoning behind Tavares's move to Italy?

Thank You!

Well there always some tricky part with Carlos , but I guess it could be related to the employment levels of the Italian 80/20 guarantee line-of-credit. So the French corporate & engineering campus would net shrink while a ''centering'' of the new EMEA in Italy .

 

[Bili]

Well there always some tricky part with Carlos , but I guess it could be related to the employment levels of the Italian 80/20 guarantee line-of-credit. So the French corporate & engineering campus would net shrink while a ''centering'' of the new EMEA in Italy .

Carlos is too political for my taste. He's always hiding something. At least that's my feeling after hearing him. He acts like a politician.

I liked Sergio more. His way of telling everything into someone's face.

I don't know why would credit line be the reason for his move to Italy. Maybe he wants to live in a smaller city than Paris but stay in Europe. Although Turin is not small with 866 thousand inhabitants with metro Turin having close to 1.7 million.

I'm not sure how much you'be been looking into merger documents but they said that American brands will be based in Auburn Hills, European in Paris, premium and luxury in Turin. Operational HQ for each of them. But historical brands will keep their seats. Which brands are historical? I would say that the only exception is Fiat which will stay in Turin.

But as I've said PSA has strong brand CEO roles. Actually FCA is not calling them CEO anymore, just Head of the brand.

I don't think that Italian employment rate will be put into question and it wouldn't be even without this loans.
Why?
In my opinion we have two reasons. First reason is state of Italian factories. Most of them are state of the art in car sector, very modern, recently refurbished or completely upgraded. They are so much modern than PSA factories.
The other reason is merger itself. I believe that with this merger Italian brands, especially Fiat, will gain some new cars in its line-up, more models. Actually I believe that Fiat has potential to become the best selling Stellantis brand in the EU. Will French price allow such outcome? Fiat is already outselling Opel and Citroen YTD although it has small and ageing line-up.

 

[Deckard Cain]

I don't think french pride will have much sway over decisions done by a portuguese CEO...
Carlos Tavares might be very political but he knows how to streamline operations. I don't think that the italian factories have much to lose. Indeed, with Fiat having such a small line-up right now, it can easily see a 40% sales increase just by entering segments its been absent for a while.

 

[KrisW]

Peugeot has been developing products that it feels it could sell in the US market, but the cars were the smallest part of its battle-plan. To succeed, PSA would have had to build awareness of the Peugeot brand, overcome the negative memories of "French cars" in the buying public's mind, and establish a dealership network, parts distribution and afters-sales support.

The merger with FCA achieves Groupe PSA's ambition of expanding into the US Market, and it achieves it to a much greater extent at much lower cost: there's no need to establish a new brand, as there are three in place (Chrysler, Dodge and even FIAT for the more "Eurocentric" product) that can sell more PSA-built cars than would ever have been possible under the Peugeot launch plan. (I do not believe PSA was considering local manufacturing as part of its re-entry, but if it was, that's all good too: North America could do with some car capacity)

The money saved by not having to establish the Peugeot brand can (and I think should) then be invested into getting FCA US's current sales network up to a higher standard. This process has already been started with Alfa Romeo in the US, but it needs to be rolled out across the brands: the under-investment in the retail and especially warranty-support aspects of the business is undoing all the objective quality improvements that have been made over the last decade.

 

[AlexB]

Carlos is too political for my taste. He's always hiding something. At least that's my feeling after hearing him. He acts like a politician.

I liked Sergio more. His way of telling everything into someone's face.

I don't know why would credit line be the reason for his move to Italy. Maybe he wants to live in a smaller city than Paris but stay in Europe. Although Turin is not small with 866 thousand inhabitants with metro Turin having close to 1.7 million.

I'm not sure how much you'be been looking into merger documents but they said that American brands will be based in Auburn Hills, European in Paris, premium and luxury in Turin. Operational HQ for each of them. But historical brands will keep their seats. Which brands are historical? I would say that the only exception is Fiat which will stay in Turin.

But as I've said PSA has strong brand CEO roles. Actually FCA is not calling them CEO anymore, just Head of the brand.

I don't think that Italian employment rate will be put into question and it wouldn't be even without this loans.
Why?
In my opinion we have two reasons. First reason is state of Italian factories. Most of them are state of the art in car sector, very modern, recently refurbished or completely upgraded. They are so much modern than PSA factories.
The other reason is merger itself. I believe that with this merger Italian brands, especially Fiat, will gain some new cars in its line-up, more models. Actually I believe that Fiat has potential to become the best selling Stellantis brand in the EU. Will French price allow such outcome? Fiat is already outselling Opel and Citroen YTD although it has small and ageing line-up.

Update:
@Bili
The 80/20 Guarantee does contain language about FCA's overall employment in Italy being maintained ...on top of the employment guarantee levels at factories.
Now, the reason why I bring this subject up is due to the increase in merger cost savings to 5 billion Euro (was 3.7 billion euro)....White collar cuts/''Pushed'' early retirement programs planned so to be in terms of the 80/20 guarantee the surviving white collar workforce is centered around Italy..

 

[Tony K]

D; As much as some may disagree with the direction, North America falls under Carlos's ''If it's not broken, don't try to fix it.''.

But it IS broken. Stellantis cannot survive in the US breathing on half of a lung (trucks and off-road biased utility vehicles) when the other lung has no air. Dodge and Chrysler need fleshed out, and Jeep doesn't answer every question that isn't a cargo vehicle.

 

[Bili]

But it IS broken. Stellantis cannot survive in the US breathing on half of a lung (trucks and off-road biased utility vehicles) when the other lung has no air. Dodge and Chrysler need fleshed out, and Jeep doesn't answer every question that isn't a cargo vehicle.

That may be the case only for CAFE reason and maybe even that is far fetched.

I'm much more worried by underfunded pension funds which ate North American EBIT every year.

 

[redriderbob]

Good, we don't need Peugeot here, just like we don't need FIAT here. FIAT was a waste of investment due to the product portfolio not fulfilling the North American segment needs. FIAT would do better if its vehicles were rolled into the Chrysler brand.

 

[sjon]

Good, we don't need Peugeot here, just like we don't need FIAT here. FIAT was a waste of investment due to the product portfolio not fulfilling the North American segment needs. FIAT would do better if its vehicles were rolled into the Chrysler brand.

Could there be a future for Chrysler as a futuristic car line for Stellantis?

 

[cygnus]

There is only one BEV scheduled for release, and that is going to built out of Windsor.

If Stellantis thinks people are going to buy cars from China (BEV or otherwise), they have another thing coming.

There is more than enough room (provided they spend the money on a renovation) at Brampton and Belvidere to produce BEVs/other vehicles for Chrysler and Dodge. Move next generation Challenger and two proposed crossovers (one is next generation Cherokee/the other will be the Dodge crossover equivalent) to Mack Assembly (thus freeing up Brampton) and build two PSA based crossovers/BEV at Brampton.

Mack + renovated Jefferson (2024) - WL75, WL74, next generation Challenger, next generation Cherokee, next generation Dodge Crossover. All new models are ICE with plug-in hybrid variants.
Brampton - eVMP Crossover LWB, eVMP crossover SWB, eVMP C segment sedan. Pure EV factory.

Belvidere can be renovated to serve as truck overflow capacity.

 

[LordHobbit]

Time for nuclear. It's clean, efficient and lasts for many years.

 

[redriderbob]

Time for nuclear. It's clean, efficient and lasts for many years.

Or turbine-powered...

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[AlexB]

''Dear Colleagues, As we come to the end of 2020 – a year unlike any other we have known – we’re also fast approaching the day when we will begin our next chapter with the creation of Stellantis''.

''As you know it has been agreed that Carlos Tavares will become the CEO of the new company and that Mike will play a fundamental role in the future success of Stellantis. Mike’s and Carlos’ early meeting of minds – thanks also to a longstanding working friendship - has been critical to every subsequent stage of our discussions with Groupe PSA as it will be for the new company going forward. Mike championed the extraordinary potential of this industry-changing merger from its earliest days and he has also set the tone for all the great work that has been done by the FCA teams working with our PSA soon-to-be-colleagues, from before the merger announcement a year ago to where we are today, precisely twelve months later.''

''The challenges we have faced as a group in recent years have been tougher than ever. Mike took the helm of our company under the most difficult of circumstances, with Sergio’s cruel and premature passing in July 2018, and he took us out of those dark days, leading by example. The following year, 2019, can hardly be described as uneventful, but even so we concluded it by sealing our historic merger with Groupe PSA and with another set of very strong results. 2020, a year whose like none of us could have imagined, has required us all to reinvent the way we work, and once again Mike has led from the front making sure to protect you and your work, staying close to our communities and ensuring that our company with all of your contributions has performed to the highest standards. The fact that as FCA we are entering this new and exciting era in such very strong, robust shape is a great tribute to him and his leadership style, centred around diversity, respect and collaboration, just as it is to all of you and your extraordinary achievements right across the company. ''

''The performance we announced for the third quarter was truly outstanding, in fact an all-time record in terms of group and North America results. Perhaps it should be no surprise that having led the profound transformation and exceptional development of the Jeep and Ram brands before becoming our CEO, Mike has taken the rough terrain of the past couple of years in his stride. We have been fortunate indeed to have him as our CEO. And so, you will understand why I’m delighted to be able to inform you today that once our merger completes – hopefully soon in the new year - Mike will be asked to take up the role of Head of Americas, working alongside Carlos and continuing to bring his great experience, energy and drive to making Stellantis the extraordinary company we know it will be. He will share his own words with you in his Town Hall meeting later today, but please join me now in appreciation of his leadership over these past two and half years, warmly congratulating him on his new role.''

''John Elkann ”

Just as I think about, the Management team should be announce before Christmas week (next 10 days).
I can see Manley as COO globally, or for the Americas where North America COO and Latin America COO report directly to Manley instead of to Tavares.

FCA (fcagroup.com)

I was correct, notice '' Profound transformation'' , ,,,, Jeep and Ram are the heart & core of the North American business, and Carlos isn't going to change that focus when that very direction is performing mid-teens EBIT profit margin ( FIAT Chrysler to report 2020 Q3 earnings Oct,28) no matter who ''feelings'' or whining/moaning/crying about the Chrysler/Dodge (like those on ''that'' other site'').

 

[Bili]

@AlexB

Yes, all as expected.

As you all know I've repeated numerous times that North American business is put in place and that South American is not much away from that state. Mike Manley will be Head of Americas at Stellantis. Americas, not America or US. Exactly those regions where PSA is almost non existent and where FCA has perfected their business.

I'm not sure if it's just semantics but this new role is not called COO. Manley is Head. I think it will slightly differ to FCA world and that we'll see more emphasis on brand CEOs at Stellantis.

In the past I've said that Manley has no clue what Italian brands like Alfa and Maserati represents. I still stand behind those world. This is something which PSA must fix and out more money into them. I'm not sure if Tavares is the right person for this. It's not secret. I want de Meo at Stellantis.

 

[AlexB]

@AlexB

Yes, all as expected.

As you all know I've repeated numerous times that North American business is put in place and that South American is not much away from that state. Mike Manley will be Head of Americas at Stellantis. Americas, not America or US. Exactly those regions where PSA is almost non existent and where FCA has perfected their business.

I'm not sure if it's just semantics but this new role is not called COO. Manley is Head. I think it will slightly differ to FCA world and that we'll see more emphasis on brand CEOs at Stellantis.

In the past I've said that Manley has no clue what Italian brands like Alfa and Maserati represents. I still stand behind those world. This is something which PSA must fix and out more money into them. I'm not sure if Tavares is the right person for this. It's not secret. I want de Meo at Stellantis.

I think Tavares (at John Elkann's urging) does another merger by 2024/2025, while Fiat in Europe will get a expanded lineup that still focus on the splits in the B-segment , and I don't think the brands will change all that much until that other deal happens.

 

[Bili]

I think Tavares (at John Elkann's urging) does another merger by 2024/2025, while Fiat in Europe will get a expanded lineup that still focus on the splits in the B-segment , and I don't think the brands will change all that much until that other deal happens.

I don't think that it's hard to fix Fiat in Europe. Actually I think it's quite easy task with availability of PSA technique. Of course engines and styling should be Fiat. As I've said Fiat has potential to be the best selling FCA brand in the EU or at least to fight with Peugeot for that position. Already YTD Fiat is outselling Opel and Citroen brands in Europe and is doing it with aging and limited number of car models.

But my concerns were more aimed at Maserati and Alfa Romeo, especially at Alfa Romeo.

 

[AlexB]

@Bili
Alfa is a difficult answer, it really will matter what Carlos think is Alfa's ceiling is in both volume and price aspects .

 

[Bili]

@Bili
Alfa is a difficult answer, it really will matter what Carlos think is Alfa's ceiling is in both volume and price aspects .

But that's where I'm aiming at. I don't think that Carlos is the right person just as Mike wasn't.

If you don't have or you didn't work for European premium car maker it's very hard that you'll understand European premium car maker.
That's the reason why I want de Neo back. He was behind Fiat 500 idea. 500, not 500L or 500X. Then he went to Audi to be their CMO and CMO for the whole VAG and then CEO of Seat. He is the one who was behind Cupra brand.

Carlos is IMO just another coat cutter. He is pupil of another Carlos. I may be wrong on this.
In addition to this PSA doesn't have platforms which can suit Alfa or any sport brand. Even today now old Giulietta is more corner capable than Pug 308 II. PSA doesn't know what IRS is or front aluminium suspension.

 

[pumadog]

Stellantis got green light from the EU (official) and aims to complete the merger by end of January (unofficial)!