Fiat Chrysler, PSA in merger talks, WSJ says

[Deckard Cain]

Looking at the EMEA and China sales, I don't see much hunger for DS. If they continue despite having Alfa and Maserati in the house, it might just be a matter of french pride. If they don't, they might let the current DS models run their course under Citroen (again). And honestly, I don't see much hunger for Lancia outside Italy as well. But IF they want to keep DS and Lancia, they could couple them IMHO.

Europe 2018: 45,000 — best year 2012: 117,000
China 2018: 4,000 — best year 2014: 26,000

DS European sales figures

Car sales statistics for DS and all other auto brands in Europe, from 2000 to 2017 by year and 2014 to 2018 by month. Also separated by model.

carsalesbase.com

GCBC

Automotive Sales Data and Statistics

carsalesbase.com

Oh, I do agree with you there.
PSA has been making an effort to build up the DS brand because they didn't have a premium brand. It depends if they are willing to throw out what they already invested in this or not.
Plus they already have a dealer network for DS built out in Europe and they might not want to burn their dealers. Using the Giorgio platform to launch new DS models could be a way to continue building the brand.

Maybe they could even use the DS dealers to sell Alfas and Jeeps.

 

[pumadog]

PSA Group has invested a lot of resources into the Vauxhall facility in Luton, England to build vans. here is a link.

Analysis: why Vauxhall's Luton plant has a bright future | Autocar

While Vauxhall's Ellesmere Port plant's future is uncertain, Britain’s oldest operating car factory seems to be in rude health

www.autocar.co.uk

I don't know much about Opel operations. I've read some accounts that the Adam model is on the chopping block because of the price squeeze appearing with the latest emissions regulations. I'm looking forward to seeing the new Fiat 500EV. It is supposed to be on a dedicated BEV platform. It will be good to have more brands to share that platform with.

I wouldn't call £100 a huge investment in car plant terms. They might close it when the next van generation is due.
Opel already axed the Adam, Karl, Cascada and Zafira (don't confuse with the new Zafira life) mainly because they were based on GM platforms and plants switch to PSA production.

 

[AlfaCuda]

We don't need a brand which will aid internal cannibalisation.

Peugeot, Jeep and Alfa are more than enough to counter Germans in Italy.

I’m thinking more on a global scale... just remember that Audi started with zilch.

 

[Bili]

I’m thinking more on a global scale... just remember that Audi started with zilch.

Global scale?

 

[Bili]

PSA Group has invested a lot of resources into the Vauxhall facility in Luton, England to build vans. here is a link.

Analysis: why Vauxhall's Luton plant has a bright future | Autocar

While Vauxhall's Ellesmere Port plant's future is uncertain, Britain’s oldest operating car factory seems to be in rude health

www.autocar.co.uk

I don't know much about Opel operations. I've read some accounts that the Adam model is on the chopping block because of the price squeeze appearing with the latest emissions regulations. I'm looking forward to seeing the new Fiat 500EV. It is supposed to be on a dedicated BEV platform. It will be good to have more brands to share that platform with.

That's not a huge investment for a plant. And it looks outdated for most of FCA's European plants.


AFAIK the one of the issues before the merger was totally different electrification strategy for FCA and PSA.
For example as you've mentioned FCA has dedicated BEV platform. As we know BEV platform offers superior packaging in comparison to a platform which also has ICE version.
PSA opted with a different strategy. Their new CMP platform which is developed for a B and economy C segments is both ICE and BEV.

It will be interesting to see which platform will be axed, which will continue, and which ones will be used for FCA products.

 

[Bili]

FCA, PSA work to avoid antitrust problems in merger

...
In two separate communications sent to employees through internal channels and seen by Automotive News Europe, the two companies told employees that members of the work groups are continuing to pursue the goals of their respective companies. "FCA and PSA will remain competitors until the merger process is completed," the internal memos said.

Respecting antitrust obligations until the merger is completed and operational, particularly stringent in Europe, is crucial to avoid hefty EU fines
...
PSA said it expects the merger to take between 12 and 14 months after signing of a memorandum of understanding. If this is signed in December, the merged company could start operations between the end of 2020 and early 2021 with its headquarters in the Netherlands.

The two companies' working groups cover areas such as product development, manufacturing, synergies, purchasing, legal issues and human resources
...

Whole article at: FCA, PSA work to avoid antitrust problems in merger

 

[Bili]

Tavares shares views on bid to combine PSA and Fiat Chrysler
...

PSA does not have a designated chief operating officer. How do you manage decision-making?

I am a strong believer in a matrix organization. At PSA we operate within three axes: the regions, the brands and the functions. Even within this three-dimensional operation, we have business units that go through and try to boost the system. For example, we could have the CEO of Peugeot reporting on volumes and profit, then the European head report on total profits, volumes, market share, quality and customer satisfaction for all brands in the region. On the functional side, we would look at whether we are ready to launch a new car, are manufacturing costs being reduced? So we are constantly reviewing the business in three dimensions.
...
On Jan. 1 new EU CO2 regulations will start to take effect and fleet emissions will have to drop sharply to 95 grams per kilometer. How will PSA flip that switch?

We have a very precise process. I can't say a lot about it because it's highly competitive, but it involves our production, our order book, and making our dealers actors in what we are doing, not just followers. For us, it's an ethical matter [to meet CO2 targets], not just a financial matter. Our employees' children might ask them someday, "What did you do to fix the global warming issue?" So, they want to say that despite working at a car company, they are contributing -- and working really hard -- to address global warming.
...
PSA has had some of the best operating margins in the automotive industry, but there is an overall cost for emissions compliance. How much of this cost can you absorb and how much will you pass on to your customers?

We can be very disciplined on pricing, but at the end of the day it doesn't matter. All we can do is be the most profitable, so you don't get hit immediately by the costs of governments not investing in a charging network, not subsidizing sales of electric vehicles appropriately, or doing the wrong thing in terms of regulations. So either we digest these costs, or we are able to increase productivity. Or we can't, and somebody will get hurt.
...

Whole interview at: Tavares shares views on bid to combine PSA and Fiat Chrysler

 

[OBMS]

FCA and PSA Peugeot to announce merger MOU Wednesday

Fiat Chrysler Automobiles and PSA Peugeot are planning to announce a binding memorandum of understanding that will merge the two carmakers, a person briefed on the announcement said Monday. A prepared statement on the agreement will be released early Wednesday in Europe, according to the person...

japantoday.com

 

[Bili]

PSA board signs off on Fiat Chrysler merger, report says

MILAN / PARIS - The board of French automaker PSA, the owner of Peugeot, approved a binding memorandum of understanding to merge with rival Fiat Chrysler Automobiles, a person close to the matter said on Tuesday.

A separate FCA board meeting was underway to discuss finalizing a $ 50 billion initial agreement to create the world's number four automaker, the source added.

Both companies declined to comment.

 

[Bili]

Merger should be official tomorrow morning. Actually it may be today in some parts of US. It's before 8 in the morning Central European Time. That's when European stock exchange opens like Borsa Italiana in Milan.

 

[Bili]

FCA and Groupe PSA to Jointly Host
Conference Call and Webcast

Wednesday, December 18, 2019 at 2:00 pm GMT / 3:00 pm CET / 9:00 am EST

Events and Presentations | FCA Group