John Elkann: “the story does not end with Stellantis”

[AlexB]

Dilution does not mean disengagement: sometimes it is the condition for the company to develop. "The president of the newborn Stellantis group told Le Figaro, in which Exor has a lower stake than it had in FCA (but still very significant ). In Italy some concern has arisen, because the more global and less national nature could make us fear (in theory) less attention for our country, but Elkann excludes this possibility. And defends the virtues of family capitalism: "In the last decade, from the financial crisis of 2008 to the health crisis of 2020, car groups controlled by families or by their founders have generated returns twice as good as the others (plus 280% compared to plus 120%), excluding particular cases of Tesla in the technology sector and Ferrari in the luxury sector. Therefore, families ensure a better performance. "The president and CEO of Exor underlines:" We have invested in Fiat, its products and factories. We have created the entire supply chain that made it possible to launch the electric Fiat 500. We have made Jeep a worldwide success. And we have launched extremely high-performance products under the Alfa Romeo brand, such as Giulia and Stelvio. In the midst of the pandemic, we offered the first Maserati whose engine is derived from our experience in Formula 1 ".

Then he hints at the next merger:

This is not a point of arrival - says Elkann -, rather a starting point. We can face the next decade with enthusiasm, during which the automotive world will experience profound transformations perhaps equal to those that occurred at the end of the 19th century, with the invention of the engine and the automobile itself. Fiat is 120 years old, and the history of Peugeot is even older. Our two families are bearers of a legacy of evolution and have shown that they know how to innovate and adapt ".

As for his relationship with Carlos Tavares, who is CEO of Stellantis, John Elkann says: "Strong character is part of the keys to success. As in the past, I will be a president who is fortunate enough to be able to work alongside a a very competent executive with whom I share the same ambition, the same vision and pioneering spirit. We need it to write a new chapter in the history of the automobile that promises to be exciting

“Per Exor nessun disimpegno dall’Italia”

www.lastampa.it

Like I figured, John will do another merger in 3-4 years right in time for Carlos’s retirement:
Post in thread 'FCA and PSA formally agree to merger:Merger Wednesday'
FCA and PSA formally agree to merger:Merger Wednesday


Post in thread 'Fiat Chrysler to invest €166 million in Poland, says Deputy PM'
Fiat Chrysler to invest €166 million in Poland, says Deputy PM

 

[pumadog]

Disagree with your speculation. He talks about the huge changes in the automotive world which Stellantis will face now. With no word does he hint to another merger. Show me if I'm wrong. And he insists that Exor wants to stay active in the business, that they're not just financial investors.

 

[AlexB]

Disagree with your speculation. He talks about the huge changes in the automotive world which Stellantis will face now. With no word does he hint to another merger. Show me if I'm wrong. And he insists that Exor wants to stay active in the business, that they're not just financial investors.

John stated something similar when the Renault talks went from “partnership” to merger/purchase:Fiat Chrysler ready for bold action to build solid future, Elkann says.

Also within a month of Chrysler’s exit from Bankruptcy, Sergio & John both discussed a full merger with Chrysler.
So Fiat merge with Chrysler & PSA so the next deal will be the third for John.

 

[Bili]

Worldwide scale would be much better with Renault and their partner Nissan than is with PSA. PSA brings only Europe to the table. Their LATAM business was on the edge of closing and still from what I've heard they may close some South American PSA factories.

So Renault was a prospect for a single and final merger which would end with acquisition of Nissan. Here indeed they are facing yet another merger.

Take a look at competitors. Toyota may swallow Mazda, Suzuki and Subaru. Actually all three are already in Toyota's orbit. VAG will most likely take FoMoCo and with it solve their only market problem which is US.
So for Stellantis targets for merger or acquisition may be some large players, some which could bring something which is lacking at Stellantis or some with still very high production numbers but with declining business. Also it's important to take into account that any Far East car maker may be off the table.

 

[kisty]

Ahhh, Renault with CEO Luca di Meo.

Pompous, bombastic language: ‘Renaulution’ - ‘Nouvelle Vague’ - ‘Software République’ - ‘Resurrection’.

Lost millions in 2019 and in the first 6 months of 2020 they lost 7 billion and needed 5 billion from the French government to keep them going.

Judge for yourself the difference between the two CEO's. Give me Tavares any day.

 

[AlexB]

Ahhh, Renault with CEO Luca di Meo.

Pompous, bombastic language: ‘Renaulution’ - ‘Nouvelle Vague’ - ‘Software République’ - ‘Resurrection’.

Lost millions in 2019 and in the first 6 months of 2020 they lost 7 billion and needed 5 billion from the French government to keep them going.

Judge for yourself the difference between the two CEO's. Give me Tavares any day.

The answer is John preferred Renault , he even told Robert Peugeot to his face over eating

Peugeot Chief Sees Fiat Deal as 'Virtual Takeover' of Renault

Paris-based PSA held talks with Fiat earlier this year on potential collaboration.

www.industryweek.com

Peugeot Harnessed Family Ties to Woo Fiat After Renault Snub

Late in May, John Elkann was back in Paris. The city had become a frequent destination for the scion of the Italian Fiat clan as he worked to get a combination with Renault SA over the line. But days before announcing the deal, Elkann walked into the apartment in the affluent 16th district of an...

www.bloomberg.com

The deal that would create Stellantis was revised by Carlos and Manley (September 2019).

 

[Deckard Cain]

Worldwide scale would be much better with Renault and their partner Nissan than is with PSA. PSA brings only Europe to the table. Their LATAM business was on the edge of closing and still from what I've heard they may close some South American PSA factories.

So Renault was a prospect for a single and final merger which would end with acquisition of Nissan. Here indeed they are facing yet another merger.

Take a look at competitors. Toyota may swallow Mazda, Suzuki and Subaru. Actually all three are already in Toyota's orbit. VAG will most likely take FoMoCo and with it solve their only market problem which is US.
So for Stellantis targets for merger or acquisition may be some large players, some which could bring something which is lacking at Stellantis or some with still very high production numbers but with declining business. Also it's important to take into account that any Far East car maker may be off the table.

Just direct your complaints at Macron then. It was the french government that torpedoed the agreement with Renault.
As for Nissan, sorry but that would never happen. The japanese are insanely nationalistic and Nissan is one of their big 3 (together with Honda and Toyota). They would rather die than see Nissan being absorbed by a foreign company.

 

[AlexB]

Just direct your complaints at Macron then. It was the french government that torpedoed the agreement with Renault.
As for Nissan, sorry but that would never happen. The japanese are insanely nationalistic and Nissan is one of their big 3 (together with Honda and Toyota). They would rather die than see Nissan being absorbed by a foreign company.

FCA did direct its complaints to Macron, but the French Government has always given Peugeot more independence.
Also Carlos has support of French unions, while Ghosn was willing to upset them often which lead to them voting No to FCA-Renault and Voting Yes to FCA-PSA.

Funny thing is Renault is closing some French plants because the union didn’t take the deal.

 

[Tony K]

FCA did direct its complaints to Macron, but the French Government has always given Peugeot more independence.
Also Carlos has support of French unions, while Ghosn was willing to upset them often which lead to them voting No to FCA-Renault and Voting Yes to FCA-PSA.

Funny thing is Renault is closing some French plants because the union didn’t take the deal.

Funny, isn't it, how that works?

 

[Deckard Cain]

FCA did direct its complaints to Macron, but the French Government has always given Peugeot more independence.
Also Carlos has support of French unions, while Ghosn was willing to upset them often which lead to them voting No to FCA-Renault and Voting Yes to FCA-PSA.

Funny thing is Renault is closing some French plants because the union didn’t take the deal.

I know they did. They give more independence to Peugeot because the Peugeot family also has some say.
As for the closing of Renault plants, french workers don't mind shooting themselves in the foot to hurt the bigger guy. They're crazy, but you have to respect that.

 

[MJAB]

Peugeot family, with the agreement with Agnelli family (Exor), is now free from french govermenent strategies.
Already in 2017 the investment by french state was already reduced by selling part of shares to Bpifrance , that is the french public investments bank. The sale was made to have more state income for that year.
In the agreement with FCA french public part has the right to sell its shares (don't remember if all or a part) = they want/need to moeitize their invesment in PSA. They are already obtained fresh cash with the extraordinary former PSA dividends.
Stellantis is in the hands of Agnelli + Peugeot families.