FCA and Groupe PSA have come together

MANILA: In what is being addressed as the most unexpected and shocking merger of the year, Fiat Chrysler Automobiles (FCA) and Groupe PSA have joined hands. While the former owns the likes of the Alfa Romeo, Fiat, Fiat Commercial, Chrysler, Dodge, Jeep, Ram, Abarth, Lancia, and Maserati, the latter comprises of Peugeot, Vauxhall, DS, Opel, and Citroen.

Following the merger, the two automobile giants will now hold 50:50 stake in each other and form the fourth largest auto group on the planet. And, similar to any other merger or partnership, the FCA and Groupe PSA will now share platforms, R&D, powertrains, technology, and much more.

While the Memorandum of Agreement is yet to the signed, the partnership is finalised and will come to fruition sooner than later. It will be FCA CEO John Elkann, who will take charge as the merger’s chairman, whereas Groupe PSA CEO Carlos Tavares will administer the business operations. Both of the individuals above will hold their chairs for a term of five years.

“This convergence brings significant value to all the stakeholders and opens a bright future for the combined entity. I’m pleased with the work already done with Mike and will be very happy to work with him to build a great company together”, said Tavares.

Some time ago, FCA was in the news for going into a merger with Renault. The plan, however, did not go well and was ultimately abandoned. Furthermore, the French government is said to be the one responsible behind the unsuccessful partnership. “I’m delighted by the opportunity to work with Carlos and his team on this potentially industry-changing combination. We have a long history of successful cooperation with Groupe PSA, and I am convinced that together with our great people, we can create a world-class global mobility company”, stated Manley.

Now, once the Memorandum of Agreement is signed, the merger will result in sales figures of around 8.7 million vehicles around the globe every year. Moreover, the combined turnover is expected to touch $ 190 billion. The two auto groups sell everything from small hatchbacks to large heavy-duty commercial vehicles, which should now help both of them in spreading their larger wings over a larger part of the planet.

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