PSA-FCA (Peugeot-Fiat) Merge; Now World’s 4th Largest Automaker
Fiat Chrysler Automobiles and French carmaker Groupe PSA today announced a full merger to create the world’s fourth largest automaker by sales and third largest by revenue. The companies have annual sales around 8.7 million units and their total revenues are nearly 170 billion euros, leaving them behind Volkswagen, Renault-Nissan-Mitsubishi and Toyota. Read – 2 New Chinese Brands To Debut At Auto Expo 2020
The merger process is expected to complete in the next 12 to 15 months. It will include merger of several luxury car brands including the FCA-owned Chrysler, Fiat, Jeep, Alfa Romeo, Dodgae, Ram, Maserati and Lancia and PSA Group-owned Vauxhall-Opal, Peugeot, DS and Citroen. The two-thirds of the production volume will be focused on two vehicle platforms (small and compact) with around 3 million cars every year.
In merger announcement, the two companies noted greater efficiencies by “optimizing investments in vehicle platforms, engine families and new technologies while leveraging increased scale will enable the business to enhance its purchasing performance and create additional value for stakeholders.” Read – 15 All-New SUVs Launching in India in 2020
The merger agreement states that the two companies will focus on Latin American, North American and European markets. Both car manufactures will be able to increase investment in “mobility solution and cutting edge technologies”, including electric vehicles and autonomous systems.
