French and Italian-U.S. auto giants Renault and Fiat Chrysler are set to announce talks on an alliance, with a view to a potential merger, informed sources said this week.Marco Bertorello / AFP/Getty Images PSA Group and Fiat Chrysler Automobiles have agreed to combine to create the worlds fourth-biggest carmaker, as the manufacturers prepare to shoulder the costly investments in new technologies transforming the industry.In the biggest auto tie-up since Daimlers ill-fated purchase of Chrysler in 1998, the French and Italo-American carmakers will each own half of the enlarged business.The new company, with global sales of 8.7 million vehicles, will be run by PSA Chief Executive Officer Carlos Tavares, with Fiat Chairman John Elkann holding the same role.The transaction would forge a regional powerhouse to rival Germanys Volkswagen and, with a market value of about US$47 billion, surpassing Ford. It will take as long as 15 months to complete, pending approvals by shareholders of both companies and by regulators, the carmakers estimated.Like executives across the industry, Tavares and Elkann are responding to growing pressure to pool resources for product development, manufacturing and purchasing in the face of trade wars and an expensive shift toward electric and self-driving technology.(Indeed, industry sources said that in the future, the new company plans to move “more than two-thirds” of production to “just two platforms, with 3 million cars per year on a compact/midsize platform and 2.6 million on a small platform,” reports Automotive News. “The smaller platform will be PSA’s CMP architecture and larger cars will be on the group’s EMP2 (while) Ram pickups and larger Jeep models will continue to use FCA underpinnings.” —Ed.)The challenges of our industry are really, really significant, Tavares, 61, told reporters on a call Wednesday. The green deal, autonomous vehicles, connectivity and all those topics need significant resources, strengths, skills and expertise.In an era when size is becoming ever more important, the deal will turn the two mid-sized carmakers into a global heavyweight, with a stable of popular brands and annual vehicle sales surpassing General Motors. The combination will give Peugeot-maker PSA a long-sought presence in North America and should help Fiat gain ground in developing low-emission technology, where its lagged rivals. Yet the new company will still be heavily reliant on Europes sluggish and saturated auto market, and poorly positioned in China, the worlds largest country for car sales.The companies are aiming to extract 3.7 billion euros in annual synergies from the deal, without closing any plants, unchanged from the target they announced when they disclosed their merger discussions. Chinas Dongfeng Motor Corp., which owns 12 per cent of PSA, will see its stake in the combined company decline to 4.5 per cent as a result of the deal and the sale of a portion of its holding to the French carmaker.Dongfengs stake in PSA has attracted attention because of the possibility it could interfere with U.S. regulatory approval. U.S. economic adviser Larry Kudlow said last month the Trump administration would review the proposed merger because the deal would give the Chinese carmaker a stake in the combined
Origin: Fiat Chrysler and Peugeot confirm merger into one US$46-billion automaker
merger
Merger confirmed for PSA and Fiat Chrysler groups
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
FCA and Peugeot-maker PSA confirm a 50-50 merger, forming new company
PSA Peugeot Citroen Chief Executive Carlos Tavares delivers a speech during the presentation of the companys 2018 full year results, in Rueil Malmaison, west of Paris, Tuesday, February 26, 2019.Thibault Camus / Getty The rumours are true: FCA (Fiat Chrysler Automobiles) is merging with PSA, the European maker of Peugeot, Citroen, Opel and Vauxhall vehicles, both corporations confirmed in a press release October 31.According to The Detroit Free Press, the two companies struck a deal that will see a 50-50 joint shareholder-owned entity. There would be no plant closures, and the combined entity would save 3.7 billion Euro annually.The two companies will have combined revenues of 170 billion Euro, with profits of more than 11 billion Euro based on 2018 figures. The new corporation will become the fourth-largest automotive group in the world. The hope is the partnership will see more automakers come together and develop self-driving technology and electrification. Under the umbrella of a Dutch parent company, the FCA and PSA will combine with a board made up of 11 members, of which each company will nominate five. Carlos Tavares of PSA will be the CEO of the new company, while John Elkmann will retain his role as FCA Chairman.The decision is still to be finalized in a memorandum of understanding in the coming weeks, but both brands have agreed to proceed.Before his death, it was FCA CEO Sergio Marchionnes vision to create a more consolidated automotive industry, and it seems like this is helping fulfill that vision.The new company will be listed on the New York, Paris and Milan stock exchanges. It isnt clear what the group will be called
Origin: FCA and Peugeot-maker PSA confirm a 50-50 merger, forming new company
Peugeot board approves Fiat Chrysler merger plans, says report
PSA Peugeot Citroen Chief Executive Carlos Tavares delivers a speech during the presentation of the companys 2018 full year results, in Rueil Malmaison, west of Paris, Tuesday, February 26, 2019.Thibault Camus / Getty The board of French carmaker PSA Group has approved a plan to merge with Italian-American rival Fiat Chrysler Automobiles, a combination that would create one of the worlds largest auto manufacturers, according to people familiar with the matter.The new board would be made up of 11 members, with six from the PSA side including Chief Executive Officer Carlos Tavares, who will lead the new company. Fiat Chairman John Elkann would take the same role at the enlarged group.Fiat Chryslers directors are scheduled to meet later Wednesday to discuss the proposal, the people said. The plan authorized by PSAs board calls for negotiations of a binding memorandum of understanding that could last several weeks, said one of the people. A representative for PSA, the maker of Peugeot and Citroen cars, declined to comment. A Fiat spokesman wasnt immediately available to comment.A merger of Fiat Chrysler and PSA, the No. 2 for car sales in Europe, would create a regional powerhouse to rival Volkswagen, with a stock-market value of about US$49 billion comparable to Japans Honda. The tie-up would also bring together two auto-making dynasties, the billionaire Agnelli clan in Italy and the Peugeot family of France.The merger plan comes several months after Fiat Chrysler and PSA explored a partnership on pooling investment to build cars in Europe, and following the collapse in June of negotiations between the Fiat and French competitor Renault SA.Automakers face tremendous pressure to pool their resources for platform development, manufacturing and purchasing as they battle through trade wars, a global slowdown and an expensive shift toward electrification and autonomous driving. Producers face the additional burden in Europe of new rules on emissions.Against this backdrop, the pace of dealmaking has picked up. Volkswagen in July said it will work with Ford on electric and self-driving car technology, while Toyota is strengthening ties with partners such as Subaru and Chinas BYD. The Indian conglomerate that owns Jaguar Land Rover has said its open to finding partners for the British automaker but isnt planning on selling the embattled unit.Tavares has sought to re-establish Peugeots foothold in the U.S., a market it exited in 1991. He set plans earlier this year for a return, with shipments starting from Europe or China in 2026.Fiat Chrysler is seen as a laggard in new technologies such as electrification and autonomy, which are expected to cost automakers billions of dollars over the next decade.The company has sought to secure its future with a larger partner for several years, dating back to late CEO Sergio Marchionnes failed courtship of General Motors. After being rebuffed by GM in 2015, rumors of talks with other automakers have swirled with varying
Origin: Peugeot board approves Fiat Chrysler merger plans, says report
BREAKING: PSA Group and Fiat Chrysler confirm merger plans
The PSA Group and Fiat Chrysler Automobiles have confirmed plans to merge on a 50/50 basis, firming up yesterday’s news that the two companies were in discussions regarding such a move. Both firms said today that the discussions would be finalised “in the coming weeks” to reach a binding Memorandum of Understanding, which will create one of the world’s largest automotive groups. They added that the “combined entity would leverage its strong global RD footprint and ecosystem to foster innovation and meet these challenges with speed and capital efficiency”. The likely merger will create a car giant worth around £40 billion and encompass 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 create the fourth largest car manufacturer globally in terms of annual sales, at 8.7m vehicles, behind Volkswagen Group, Toyota and the Renault-Nissan-Mitsubishi alliance, as well as revenues of €170bn (£147bn) and recurring operating profit of over €11bn (£9.5bn). Today’s announcement also stated there are estimated synergies of €3.7bn (£3.14bn) synergies annually “without any plant closures resulting from the transaction”. This would come from a more efficient allocation of resources for major investments in vehicle platforms, powertrain and technology as well as purchasing power. The two firms projected that 80% of the synergies would be achieved after four years. The shareholders of FCA and PSA will each take a 50 per cent stake in a new Dutch parent company, under the proposals, with the governance structure balanced between the two firms. There would be 11 board members, with five nominated by FCA and five by PSA. Current FCA chairman John Elkann will become the chairman of the new firm, while PSA group boss Carlos Tavares would become the CEO, standing on an initial five-year term. PSA Group chief Carlos Tavares is famous for cutting costs – for example, turning Vauxhall into profit in under 12 months of taking ownership – and PSA and FCA claimed the merger would make “among the highest margins in the markets where it would operate,” based on FCA’s strength in the Americas and PSA Group’s in Europe. As well as broadening the global reach of both firms, the merger will also mean the new entity will comprehensively cover all areas of the market including luxury, premium, volume, trucks and light commercial vehicles. PSA Group boss Carlos Tavares said: “This convergence brings significant value to all the stakeholders and opens a bright future for the combined entity. I’m pleased with the work already done with Mike and will be very happy to work with him to build a great company together.” FCA chief Mike Manley said: “I’m delighted by the opportunity to work with Carlos and his team on this potentially industry-changing combination. We have a long history of successful cooperation with Groupe PSA and I am convinced that together with our great people we can create a world class global mobility company.” FCA has already been in the news this year regarding mergers. It held extended talks with Group Renault over a possible partnership but those talks broke down after the two firms could not reach an agreement, thought to be hampered by Renault’s alliance with Nissan and the French government. 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
Origin: BREAKING: PSA Group and Fiat Chrysler confirm merger plans
Fiat Chrysler reportedly looking at a merger with Peugeot
Peugeot e-Legend ConceptPeugeot Fiat Chrysler Automobiles is considering a merger with European conglomerate PSA, the group that owns Peugeot, Citroen, DS, Opel and Vauxhall, according to a report from The Wall Street Journal breaking late October.If the deal goes through, it could create a US$50-billion global Goliath of a company, with Peugeot CEO Carlos Tavares at the helm of the joint venture, says the Journal.FCA chairman John Elkmann would continue in his current role after the merger.Tavares is, among other things, credited with saving Opel from the dustbin. PSA purchased the brand from General Motors back in 2017, and the exec got Opel to turn a profit just 18 months later. PSA is hoping to break back into the U.S. markets, where it hasnt sold a car in more than 20 years. Its unclear how brand operations would be structured after the merger.FCA had previously tried to merge with another French car company, Renault, at the beginning of 2019. That deal would have seen FCA take over a 50-per-cent stake in that company, but instead, the deal fell apart when the French government, which has a 15-per-cent stake in Renault, got between the two automakers.Even before FCA courted Renault, PSA had originally talked about a merger with the Italian-American carmaker, but FCA rebuffed it; at the time, Fiat Chrysler execs felt as if a merger wouldnt solve any of its money problems in the weakening European market.PSA and Fiat Chrysler already build commercial vans together as a joint-venture; the products of that partnership include the Fiat Ducato, Peugeot Boxer and Citroen
Origin: Fiat Chrysler reportedly looking at a merger with Peugeot
PSA Group and Fiat Chrysler confirm merger talks
Fiat Chrysler Automobiles is holding merger talks with the PSA Group that would create one of the world’s biggest car groups. The Financial Times has reported that the two firms have been in talks for several months over a merger. Both companies have now confirmed the talks. 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. 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
Origin: PSA Group and Fiat Chrysler confirm merger talks
FCA, Renault hoping merger talks will restart, report says
2018 Renault Twingo Executives at Fiat Chrysler and Renault-Nissan remain open to the idea that a merger deal could still happen, but they warn that conditions imposed by each side could hurt efforts to restart talks, The Wall Street Journal reported, citing people familiar with the situation.Renault executives are optimistic that the outcome of Nissans shareholder meeting this week will spur new merger talks with FCA as support for a deal still exists inside the French automakers headquarters near Paris, the newspaper said, citing people close to Renault.In addition, Nissan has not closed itself off to the possibility of an eventual deal, but would also like to reshape the alliance to allow for added flexibility and independence for each partner, the WSJ reported.Renault CEO Thierry Bollore said last week that there was nothing happening between the French automaker and FCA after the collapse of merger talks aimed at creating the worlds third-largest automaker.The merger discussions with FCA ended abruptly after the French government, Renaults most powerful shareholder, sought a delay to gain the explicit assent of Nissan. FCA blamed political conditions in France when it withdrew its proposal, and a signal from the French state that it would give up its sway over Renault would be necessary for a resumption of talks, people with knowledge of the situation have said. For Renault and the state, repairing the relationship with Nissan will take priority over a FCA deal, officials have said. France in particular views securing the Japanese automakers explicit backing as crucial for the success of an FCA-Renault combination.Despite the finger-pointing that followed the failed talks, Renault, FCA and France have left the door open for a possible deal as they brace for the costly changes sweeping the industry, such as developing electric and autonomous
Origin: FCA, Renault hoping merger talks will restart, report says
Fiat Chrysler withdraws Renault merger offer
Fiat Chrysler Automobiles (FCA) has withdrawn its offer of a ’50/50 merger’ with Renault. If it had gone ahead the deal would have created one of the world’s biggest car firms, but a FCA statement said “it has become clear that the political conditions in France do not currently exist for such a combination to proceed.” The decision to withdraw the offer was taken at a meeting of the FCA board. That comment is a direct reference to the fact that – after more than six hours of talks yesterday – Renault’s board again delayed a decision on whether to engage with the proposal. The French government, Renault’s largest shareholder, had requested the delay. In a statement Renault said it was “unable to take a decision due to the request expressed by the representative of the French state to postpone the vote to a later council.” FCA had claimed that combined annual revenues from the merger would be around £150bn, with an operating profit of more than £8.8bn a year. It had also claimed thato plant closures would be considered as a result, with output of around 8.7m cars a year. In its statement withdrawing the offer, FCA said that it “remains firmly convinced of the compelling, transformational rationale of a proposal that has been widely appreciated since it was submitted, the structure and terms of which were carefully balanced to deliver substantial benefits to all parties.” FCA offered its thanks to Renault, along with the French firm’s Alliance partners Nissan and Mitsubishi, for their “constructive engagement” over the proposal. Analysts had broadly welcomed the possibility of the tie-up between the two firms, with FCA’s strength in North America, through its Jeep and Ram brands, giving Renault an opening in that market, and FCA benefitting from Renault and Nissan’s experience with electrified cars, where it is lagging. FCA also includes the Fiat, Alfa Romeo and Maserati brands. It is not clear if the withdrawal of its offer spells the end of the potential alliance, or if FCA will talk to other partners instead. Previously FCA is also understood to have also held talks with the PSA Group, which comprises Peugeot, DS, Citroen and Vauxhall/Opel, over a partnership. PSA boss Carlos Tavares is known to be keen to grow his firm with acquisitions or partnerships, and has been strongly linked to a deal with Jaguar Land Rover. FCA boss Mike Manley is also known to be keen on a partnership, telling reporters at the Geneva motor show that he was open to cooperation with other car firms, “whether it’s partnerships, joint ventures or deeper levels of equity cooperation that makes sense for us and whoever that
Origin: Fiat Chrysler withdraws Renault merger offer
Fiat Chrysler withdraws 50/50 merger proposal with Renault
In this file photo taken on August 21, 2017, a car dealer in Turin, Italy, shows the logos of Jeep, Fiat, Lancia and Alfa Romeo automobile company, brands of Fiat Chrysler Automobiles (FCA).Marco Bertorello / Getty Images Fiat Chrysler Automobiles (FCA) has withdrawn its merger offer with Renault, not long after reaching a tentative agreement with France on the terms of the proposed offer. Renault issued a statement that it had been reviewing the potential 50/50 merger “with interest” but was unable to reach a decision because representatives of the French State – which owns 15 per cent of Renault – had asked for the automaker’s vote to be postponed to a later meeting. This request followed two consecutive days of meetings by Renault’s board of directors. In turn, FCA issued a statement saying that “it has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully.” The American automaker thanked the heads of Renault, along with its Alliance partners Nissan and Mitsubishi. FCA proposed the merger with Renault on May 27. It would have created the world’s third-largest automaker, behind Volkswagen and Toyota, and was valued at US$35 billion. The Wall Street Journal reported that FCA had pulled the merger offer after Nissan refused to support the deal. The paper also said it was Nissan’s stance that caused the French government to ask for postponement of the vote. Reuters reported that Nissan’s CEO, Hiroto Saikawa, said that the FCA-Renault merger “would require a fundamental review” of his company’s relationship in the Renault-Nissan-Mitsubishi Alliance. The connection between Nissan and Renault has already been strained by the arrest of CEO Carlos Ghosn. Prior to FCA’s withdrawal, the merger proposal was expected to pass without any issues, although concerns about job losses were raised by European governments. The United Auto Workers Union (UAW) said in a statement that, “As with any merger of companies, the UAW is first and foremost concerned how this will impact our members. FCA leadership has stated to us that this action will not result in any closure of our represented locations.” Following the initial announcement of the proposal, Mike Manley, CEO of FCA, sold US$3.5 million worth of his FCA shares. In other news, U.S. sales chief Reid Bigland has sued the automaker in a “whistleblower” lawsuit, claiming the company punished him for speaking to the federal government about how it reported its
Origin: Fiat Chrysler withdraws 50/50 merger proposal with Renault
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