Fiat Chrysler and PSA Group amid talks for a potential merger
Category: #business  By Mateen Dalal  Date: 2019-10-30
  • share
  • Twitter
  • Facebook
  • LinkedIn

Fiat Chrysler and PSA Group amid talks for a potential merger

Factors like global economic slowdown as well as increasing shift towards autonomous driving and electrification has forced automakers to join forces and share expenses for product R&D and manufacturing.

One such instance was seen recently when French car manufacturer PSA Group and Fiat Chrysler Automobiles NV revealed plans to ink a merger deal. According to reports, the move is slated to restructure the whole auto industry and produce a European brand that could compete head to head with Volkswagen AG.

Sources close to companies claim that both PSA and Fiat Chrysler are in talks, discussing the viability and opportunities for a merger. Also, it was speculated that under a recent proposal PSA could acquire the French entity, giving Fiat an advantage in regards to board seats.

According to an extraordinary meeting held by PSA, both the firms have come to a consensus on appointing PSA Chief Executive Officer Carlos Tavares as the CEO of the merged company while John Elkann, heir of Fiat’s founding Agnelli family, could become the chairman.

Reportedly, the talks follow PSA and Fiat Chrysler plans to explore a partnership on pooling investment to develop cars in Europe. It also follows the failed negotiations between the French rival Renault SA and Fiat Chrysler.

Reliable sources cite that the government of France would become a crucial player in this deal as it is one of the largest owners of PSA, a company that holds various brands like Opel, Citroen and Peugeot. However, there is a chance that both the firms could fail to reach an agreement for this merger.

Currently, Fiat Chrysler and PSA face the additional load of new emissions regulations in Europe which demands automobile industries to fulfill stringent fleet requirements by 2020. Meanwhile, representatives from PSA, the French finance ministry and Fiat Chrysler denied commenting on this development.
 

Source Credit: https://www.detroitnews.com/story/business/autos/chrysler/2019/10/29/fiat-chrysler-merger-potential-peugeot/40479051/

  • share
  • Twitter
  • Facebook
  • LinkedIn


About Author

Mateen Dalal    

Mateen Dalal

Mateen has completed his Bachelor’s degree in electronics and telecommunication engineering, post which he lent his proficiency to the industry, working as a quality and test engineer. Drawn intricately toward the field of content creation however, Mateen soon switc...

Read More

More News By Mateen Dalal

Air France-KLM & JAL make bids to purchase stake in Malaysia Airlines
Air France-KLM & JAL make bids to purchase stake in Malaysia Airlines
By Mateen Dalal

Air France–KLM S.A., one of the leading global air transport players, has reportedly made a proposal to invest in Malaysia Airlines and gain around 49 percent stake. Japan Airlines (JAL) is also looking to acquire a 25 percent stake in Mal...

Accenture opens innovation center in South Beach Road office
Accenture opens innovation center in South Beach Road office
By Mateen Dalal

Accenture, an Irish multinational professional services company, has recently opened a global innovation center within the Accenture’s office at South Beach Road, which is supported by EDB (Economic Development Board) in Singapore. It will pro...

Verrica unveils positive data from VP-102 study in molluscum treatment
Verrica unveils positive data from VP-102 study in molluscum treatment
By Mateen Dalal

Findings from the study are being produced at the 17th Annual Winter Clinical Dermatology Conference in Kohala Coast The data indicated a considerable increase in the percentage of patients with lesion clearance in VP-102 group Verrica Pharmaceu...