Merger confirmed for PSA and Fiat Chrysler groups The deal will create the fourth largest car maker in the world The PSA Group and FCA have agreed to merge in a deal worth £39 billion, which will create the fourth largest car manufacturing group in the world. Having been in discussions for the past six weeks, the two companies have confirmed a full merger, which will see global sales of around 8.7 million vehicles. The deal is set to be completed in the next year or so. A name for the new group is yet to be decided upon, though current PSA boss Carlos Tavares will become CEO of the group. The deal is expected to see annual cost savings of more than £3 billion due to increased purchasing power, shared development costs, and platform, technology, and powertrain sharing. The PSA Group accounts for the Peugeot, Citroen, DS Automobiles, and Opel/Vauxhall brands. These will join the Fiat Chrysler Automobiles group brands which include Fiat, Chrysler, Jeep, Alfa Romeo, Abarth, Maserati, Lancia, and Dodge. Both manufacturing groups have previously announced wide-reaching electrification plans, with the PSA Group on the cusp of a large-scale launch of electric vehicles in the UK and Europe. The Peugeot e-208, Vauxhall Corsa-e, and DS 3 Crossback E-Tense are all available to order with deliveries starting soon, and there are other pure electric models on their way. These are supported by a similarly wide-reaching set of PHEVs, including saloon, estate, and SUV models. The FCA Group has a number of plans in place, though is further away from launching electric models. A pure-electric Fiat 500 has previously been confirmed, and is expected to remain in the pipeline even with the new deal. Likewise, plants in Italy are already being converted to allow the production of electric cars, and the merger is only likely to speed up FCA’s brands in bringing EVs to market. The PSA Group is large in Europe, but has relatively limited reach elsewhere in the world. Likely to have been of great appeal to the French-based firm is FCA’s extensive reach in North American markets, while the likes of FCA’s Fiat, Lancia, and Alfa Romeo will likely benefit from shared developments from PSA.
Origin: Merger confirmed for PSA and Fiat Chrysler groups