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Wednesday, December 18, 2019

Peugeot and Fiat Chrysler finalize merger to create fourth-largest automaker Wednesday Dec 18,2019

French carmaker PSA and Italian-American rival Fiat Chrysler (FCA) announced on Wednesday Dec 18,2019 that they had sign deal to merge creating the world's fourth-largest car company after Toyota, Volkswagen, and Renault-Nissan-Mitsubishi.

PSA group manufactures the Peugeot, Citroen, Opel, and Vauxhall brands

"The proposed combination will be an industry leader with the management, capabilities, resources and scale to successfully capitalize on the opportunities presented by the new era in sustainable mobility," the two companies said in a joint statement

The new firm will compromise an equal 50-50 relationship of both sides. Leaders have promised that no factories will close

Leading the auto giant will be PSA's cost-slashing CEO Carlo Tavares, with Fiat Chrysler chairman John Elkann staying on as chairman of the merged company. The new name of the merged firm has yet to be announced

The companies said the merger would create €3.7 billion ($4.1 billion) in savings, which will come from sharing investments in vehicle platforms, engines as well as new technology and leveraging scale on purchasing.

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