Currently reading: Peugeot-Citroen 'next to merge'
Fiat/Chrysler boss predicts French company is looking for a partner
1 min read
13 April 2010

Fiat and Chrysler boss Sergio Marchionne has predicted PSA Peugeot-Citroen will be the next car maker to enter into a merger with a rival.

"The next merger will probably be French," Marchionne told Automotive News. "They tried with Mitsubishi and they will try with someone else."

PSA Peugeot-Citroen ended talks over a proposed equity swap with Mitsubishi last month.

PSA Peugeot-Citroen currently has an engine partnership with BMW, and both parties said earlier this year they were exploring other areas where they can co-operate.

Daimler and Renault-Nissan last week announced a tie-up to share platforms, drivetrains and engines as part of a massive cost-saving push.

Marchionne's Fiat acquired 20 per cent of Chrysler in June.

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13 April 2010

hmmm.. gossip as a new, nice :)

13 April 2010

Quite. They'll be telling us all about the new Astra police car next. A slow news day indeed :)

13 April 2010

Am I the only one who thinks Marchionne should do a bit more concentrating on his own business instead of mouthing off about what he thinks the others are going to do.
So first he says the SAAB deal will fail, now he's predicting alliances, How about predicting FIAT will turn a profit soon? I'm petty sure he'll be keeping quiet on that front for a while still.

13 April 2010

Oh do shut up Sergio...

13 April 2010

[quote WooDz]Am I the only one who thinks Marchionne should do a bit more concentrating on his own business instead of mouthing off about what he thinks the others are going to do.

I am guessing it was probably an answer to a question, rather than Marchionne suggesting it off his own bat. I see nothing wrong with him offering an opinion, and given that Fiat have been through their fair share of merger talks over the years, he is probably a good person to ask. He has also repeatedly said that eventually there will only be 5 or 6 big automotive conglomerates, so a PSA merger with another group seems entirely logical.

13 April 2010

Well, PSA have been working with FIAT for about the last 30 years or so, dating back to the Pug J5 van/Fiat Ducato, and the heavy versions of them. Also there was the Pug 806/Citroen Thingy/Fiat Ulysse people carriers and the the Citroen Relay/Fiat Scudo little vans as well...

Think that out of all the mergers/joint ventures this is the one that is most likely to happen... especially now that Chrysler are in bed with FIAT this means that between Fiat and PSA they now have access to the USA market, and Chrysler access to the emerging markets that FIAT do quite well in with the Palio.

13 April 2010

Not that many options left. Can't really see much synergy in car markets between BMW and Citroen/Peugeot. Maybe engines, but factories,assemblies and components ?

Fiat has their hands full revamping their ranges and Chryslers. Many after they've digested that lot they might look at PGA.

The best match would be SAIC, giving PGA access to Chinese markets low cost parts, and giving SAIC a major brand in Europe with MG using PGA chassis's.

And who is going to partner with Saab ? Morgan ?

13 April 2010

Peugeot-Citroen will struggle with a merger, they already have two product lines that compete with each other - if they merge with another similar maker they'll just turn in to a GM type manufacturer haemorraging money and cannibalising sales. Then again, if they go for Mitsubishi they'll be taking on a basket case.

13 April 2010

Actually Disco.Stu you're probably right that this is an answer to a question.
Silly me forgetting that most of the time the press leave the important parts of the story out to exaggerate the headline.

I'm a bit clueless as to who P&C would form an alliance with too. The companies work almost independently as it is where it seems they only bump into each other whilst rummaging through the parts bins.

SAAB could be an interesting partner, maybe Subaru? I'm thinking about the companies wanting to become more premium and that means AWD is a must. You have the WRC phenomenon too.

However mention Subaru and that leads me to Toyota, so I'll place my bets that P&C will become TCP (maybe not quite in the literal sence) I think that name is taken.

13 April 2010

This is a tricky one to call but I think it will be a far eastern firm. I think the suggestion of SIAC could turn out to be true. I would'nt rule out Toyota either.

Slightly off-topic, I still think BMW and Honda will merge before too long.


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