Fiat Chrysler Automobiles is holding merger talks with the PSA Group that would create one of the world’s biggest car groups, and reports suggest it will be detailed tomorrow.
A source apparently close to the tie-up told news agency Reuters that a deal would be announced this Thursday. Both companies confirmed the talks were taking place, with the Financial TImes reporting they have been ongoing since a proposed FCA-Renault merger went south earlier this year.
PSA issued a statement that said: “Following recent reports on a possible business combination between Groupe PSA and FCA Group, Groupe PSA confirms there are ongoing discussions aimed at creating one of the world’s leading automotive groups.”
A similar statement from FCA read: “Following recent reports on a possible business combination between Groupe PSA and FCA Group, Fiat Chrysler Automobiles NV confirms there are ongoing discussions aimed at creating one of the world’s leading mobility groups.
“FCA has nothing further to add at this time.”
The potential merger would create a car giant worth around £40 billion and encompassing some of the world’s biggest car brands. FCA owns Fiat, Jeep, Alfa Romeo, Maserati, Ram, Lancia and Chrysler, while the PSA stable includes Peugeot, Citroën, DS and Vauxhall-Opel. The deal would ensure the massive investments in autonomy and electrification could be shared via greater economies of scale and development clout.
FCA has been looking for a partner for some time, and earlier this year held extended talks with Group Renault over a possible partnership. But those talks broke down after the two firms could not reach an agreement.
PSA boss Carlos Tavares led the purchase of Vauxhall-Opel and has been keen to expand the firm for some time, either through partnership or further acquisition. PSA is understood to have previously looked at buying Jaguar Land Rover, and has previously held talks with FCA.
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Where does Dongfeng fit into
Where does Dongfeng fit into this, seeing that they own 13.68% of PSA?
Has anyone alse noticed the
That's an awfully large box
That's an awfully large box of brands, every one of them carrying considerable historical weight and so painful to lose, with the exception of DS - not that I think DS will disappear. I may be wrong but I don't think even GM in its heyday had that many to play with - and look what they had to do to survive. I don't think the resultant conglomerate would in any way resemble GM though. In fact, I wonder if historical models could be used at all to predict what will happen. Personally, I would have liked PSA to consolidate before taking on more work but maybe they feel that FCA offers too much to allow it to fall into anyone else's hands. Fully developed 4x4 is something the French firm has been rather short on, as well as names that US buyers recognise.