Home/Peugeot/2008

EU to rule on PSA-FCA merger by mid-June

Will the EU approve the merger of the PSA Group and Fiat Chrysler? We'll find out by the middle of June when its competition commission makes its ruling.

4 months ago
Comments
Derek Fung
Journalist

The PSA Group and Fiat Chrysler (FCA) have asked European anti-trust regulators to rule on their proposed merger.

According to Reuters, the two carmakers submitted their formal request this week, and the European Commission says it will make a decision by June 17, 2020.

Late last year the automakers signed on to a merger of equals, which will see a new holding company formed in the Netherlands.

The boardroom will have 11 members, five each nominated by FCA and PSA, with Carlos Tavares, currently PSA’s CEO and the new company’s intended chief executive, filling the last spot.

If given the go-ahead, the as-yet-unnamed combined automaker will be the world’s fourth largest by volume.

Tavares has indicated the company will keep all 13 brands – Fiat, Lancia, Alfa Romeo, Maserati, Chrysler, Dodge, Jeep, Ram, Peugeot, Citroen, DS, Opel and Vauxhall – and not close any factories. Annual savings of €3.7 billion ($6.2 billion) are expected to come from its larger scale and reduced backroom overheads.

It’s unclear if the current COVID-19 pandemic will change the new automaker’s calculus.

PSA’s two electrification-friendly platforms will underpin most of the combined car maker’s new models, although there will probably need to be a separate platform for pickup trucks.

The merged automaker will have healthy presences in Europe, North America, and Latin America, although the vast of majority of profits will come from its home markets.


Share

Link copied!