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Old 15th December 2008, 20:04   #1
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Default Fiat, PSA Peugeot-Citroen considering merger

source:Fiat, Peugeot-Citroen considering merger

Perhaps we saw this one coming: Just a week ago, Fiat CEO Sergio Marchionne (pictured) told the media that he didn’t think Fiat could survive the market downturn without working directly with another manufacturer. Now comes a report that Fiat and PSA Peugeot-Citroen are considering merging with the help of French president Nicolas Sarkozy and Italian Prime Minister Silvio Berlusconi.

Italian business newspaper Milano Finanza reported over the weekend that Berlusconi’s office had spoken with Sarkozy’s office regarding a potential tie-up between the two manufacturers. Berlusconi’s office has been considering following the lead of France and Sweden by offering some financial aide to domestic automakers.
John Elkann, chairman of IFI, Fiat’s controlling shareholder, will meet with Berlusconi on Wednesday for an undisclosed purpose. The Italian paper suggested that the meeting could discuss a French-Italian merger.
The two automakers have had joint-ventures in the commercial vehicle and minivan segments, but both compete heavily in the small car market. Combined, Fiat, Peugeot and Citroen produced 6.2 million vehicles last year, about the same number as Volkswagen and Renault-Nissan. If the automakers joined forces, they would compete with Renault-Nissan for the title of fourth largest automaker.

another source:Report: Fiat & PSA/Peugeot-Citroen set to Merge - worldcarfans

Reports out of Italy have suggested that Fiat and PSA/Peugeot-Citroen are looking into the possibility of merging as a way to survive the current financial crisis. The news comes just days after Fiat's CEO, Sergio Marchionne, stated that the company would need to find another automotive partner to ensure the company's survival in light of the recent economic downturn.
The issue seems to have reached a high enough level that leaders in both France and Italy have held discussions on the matter. According to analysts a merger between the two companies would make sense, considering that both have extensive experience making small cars and the two have worked together since 1978 on joint projects such as the recent Peugeot Boxer, CitroŽn Jumper and Fiat Ducato vans. If the two companies were to merge their combined output would rival Volkswagen and Renault-Nissan, making the proposed company the fourth largest automaker in the world.
Any potential merger would take months to complete, but if such as tie-up does occur hopefully we can expect the return of the Citroen SM.

Last edited by sidindica : 15th December 2008 at 20:08.
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Old 15th December 2008, 20:23   #2
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I already mentioned the possibility of PSA should extend their relationships with Fiat in this post.

And turned out that way.
I hope they make it.

What more they can do if they combine.

1) Considering now they are more than 3 manufacturers, they should take control of A.S & S. for India and dealerships.

2) Bring in the Peugeot cars and with those JTD and then in future the multiair can stir the Indian market.

3) Watch out for reliability factors as both of them are known for electrical issues.

A bright future for all three of them if they reconsider India in a combined manner.

The worldcarfans link is already posted by me.

And the thread about Fiat's poor health is already existing.
http://www.team-bhp.com/forum/intern...-business.html (FIAT readying for sell-off/merger of Auto business!)
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Old 15th December 2008, 22:25   #3
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The big problem will be the ego's of the Fiat/Peugeout leaders!
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