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Fiat Chrysler merger with Peugeot maker PSA Groupe creates 4th largest automaker

Discussion in 'Canada' started by Turboski, Oct 31, 2019.

  1. Turboski

    Turboski Karting

    Sep 3, 2015
    56
    It's official: Fiat Chrysler Automobiles and PSA Groupe intend to merge operations.

    The companies early Thursday announced their plans for a 50-50 joint shareholder-owned entity that they said would save $4.11 billion (3.7 billion euro) annually without plant closures. The companies would have combined revenue of $189.06 billion (170 billion euro) with profits of more than $12.23 billion (11 billion euro), based on 2018 figures.

    The announcement, which comes only days after word of serious talks leaked, shakes up the global automotive industry at a time of transition. Together, the companies will create the fourth-largest automotive group in the world and likely put pressure on other automakers to consider consolidation as the global auto market slows and companies look for ways to pay for the development of self-driving technology and electrification.

    It's not clear what the new company will be called.
     
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  3. LVP488

    LVP488 F1 Rookie

    Jan 21, 2017
    3,627
    France
    French press reports are that the HQ of the new company will be in the Netherlands, and John Elkan (FCA) will become Chairman while Carlos Tavarès (PSA) will become CEO. Both companies have similar sizes but PSA is more profitable, so the announcement resulted in increased value for FCA shares and decreased value for PSA shares (although that could be a short term reaction).
     
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  4. pilotoCS

    pilotoCS F1 Rookie
    Silver Subscribed

    May 19, 2019
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    The District
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    W. B.
    I'm trying to figure the upside of this for the American operations of FCA. Other than perhaps better European distribution of Jeeps, it's a head-scratcher.
     
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  5. Isobel

    Isobel F1 Veteran
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    Jun 30, 2007
    9,654
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    Is, Izzy for Australians
    Both of them are ill equipped to increase share in the bull.... walks American market. Although they technically become fourth largest, this is a current day reboot of Studebaker-Packard. Maybe Geely will buy them for pennies on the dollar in 3 years time. Raggedy line-up top to bottom with nothing on the way to stop the slide. Mopar shareholders should enjoy the boost and sell now imho.
     
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