[JS Kwt]

Peugeot family open to merger with Fiat Chrysler FCA

The PSA Group comprises Citroën, DS, Peugeot and Vauxhall-Opel, and boss Carlos Tavares has already said he is interested in acquiring more brands. The FCA Group, whose brands include Alfa Romeo, Fiat, Maserati and Jeep, has frequently been cited as a potential target.

The Peugeot family is a major shareholder in the PSA Group through its FFP holding company. In an interview with the Les Echos newspaper FFP chairman Robert Peugeot was asked about a potential merger with FCA, and said: “With them, as with others, the planets could be aligned.”

LONDON: Fiat Chrysler shares jumped on Tuesday to the top of Europe's STOXX 600 after the president of Peugeot family holding company FFP told French daily Les Echos he would support a new deal and suggested Fiat Chrysler was among the options.
Shares in the Italian-American carmaker were up 5.2 percent by 1050 GMT, while Peugeot gained 2.7 percent, helping boost Europe's autos index which was up 2.5 percent.

Peugeot's remarks came on the heels of reports the group's CEO Carlos Tavares is open to deals and that Fiat, General Motors, and Jaguar Land Rover could be ideal partners.

FCA's new boss Mike Manley, said this month the carmaker was open to pursuing alliances and merger opportunities if they make sense and strengthen its future.

Peugeot family would support more PSA acquisitions
FCA thrives alone, but tie-up OK, too
Economic Times
Autocar UK

[GTO]

Two wrongs don't make a right! And two mediocre companies coming together don't account for anything special.

Fiat & Chrysler had their own issues before they became one, and we can safely state that FCA hasn't exactly worked out as they hoped. This is yet another example...despite their recent rejuvenation, I see Peugeot as an average manufacturer at best, and one that is missing in many key markets worldwide (including India & USA). There is a lot more Peugeot has to accomplish before it even thinks of merging with a behemoth like FCA.

[vb-saan]

This doesn’t even sound exciting on paper. PSA’s portfolio is quite unexciting/mediocre to start with, and I feel adding FCA brands to it will take away whatever sheen is left on them. Irrespective of the mess they are in, brands like Alfa Romeo, Jeep etc. will need some better takers who can build on the pedigree.

[ajmat]

I think Peugeot ought to consolidate first. They have started making really good cars. They need to resolve Brexit implications and integrate Opel in first. They wisely deferred India until they resolved their turnaround.

Entering USA is a plan but it is difficult - federal rules are different, product liability and the dealers will be cynical. Fial and Alfa have been non starters for them.

[anjan_c2007]

It will be a welcome M & A if it fructifies. But a flashback down memory lane to the 1940's to 1970's here, focussing on the scenario in India we would have had :-

(1) Fiat by Premier Automobiles Limited (PAL)
(2) Dodge, DeSoto, Plymouth, Fargo by Premier Automobiles Limited (PAL)
(3) Willys/ Jeep by Mahindra and Mahindra (M&M)
(4) Ambassador earlier a HM brand, now owned by the PSA Group

All these would have come under the same management now, the mighty PSA Group.

[volkman10]

Looking for a suitor and spurred by many, Fiat and PSA are back in merger talks.


Fiat Chrysler and Peugeot parent PSA in merger talks, deal could create a car-maker worth more than $47bn.

The discussions mark an attempt by France's PSA and its chief executive Carlos Tavares to take advantage of a failed combination earlier this year between FCA and rival French carmaker Renault.

For FCA, a deal would mark the latest attempt to follow through on its belief the car industry is in desperate need of consolidation.

The Agnelli and Peugeot families held talks a decade ago, before Fiat decided to pursue Chrysler.

Link

[arjab]

If this merger/buyout/tech transfer or whatever it's named, goes through, it would be interesting to see where the Ranjangaon plant of India , which is a shared resource between Tata Motors & FCA slots in. Or whether the India unit will be orphaned, a la GM, did when Daewoo went bust and GM was buying it piecemeal.

[arvindmanju]

Fiat and Peugeot have confirmed merger talks. Source Reuters

A deal between the two carmakers would create a business with a combined market value of nearly $50bn (£39.9bn).
This is Fiat Chrysler's second attempt at a merger this year after it pulled out of an agreement with Renault in June.

Discussions remain in the early stages and there is no guarantee of a final deal. However, if the two companies do combine, PSA chief executive Carlos Tavares is expected to lead the enlarged group.

A combination of Peugeot and Fiat Chrysler would create the world's fourth largest auto manufacturing group from two mid-sized players threatened by technological and regulatory challenges.

Under the proposed deal, they said the companies would combine through a 50-50 share swap, creating a new company formally based in the Netherlands.

I am not sure what this will mean for India where PSA is on course to launch the Citroen cars.

[volkman10]

FCA and PSA combined would create the world’s 4th largest car maker by sales.





Link

[devarshi84]

We are going to see a lot of synergies, mergers and acquisitions alongwith bankruptcies and shutdowns going forward.

Car ownerships are going down, Car productions are going down, technologies are shifting and the world as we know it is changing.

FCA merger will have so many brands, they will have to kill atleast a third of them. We have

Peugeot
CItroen
DS
Opel
Vauxhall
Aixam
Alfa Romeo
Abarth
Lancia
Fiat
Maserati
Dodge
Chrysler
Ram
Jeep

It is a pity that Chrysler USA will be at the receiving end. We can only hope that a merger brings only positive things on the table.

[volkman10]

Fiat Chrysler to join forces with PSA to create fourth-largest carmaker.

Fiat Chrysler and PSA Group said on Thursday they would join forces through a 50-50 share swap to create the world's fourth-largest automaker.

The boards of the two groups have mandated their respective teams to finalize discussions and reach a binding memorandum of understanding in the coming weeks, the two automakers said in a joint statement.

Fiat Chrysler will pay its shareholders a 5.5 billion euro ($6.1 billion) special dividend and hand them its shares in its robot-making unit Comau, they said.

Chairman John Elkann will chair the combined group, which will be based in the Netherlands, they said, while PSA's Carlos Tavares will be the new CEO.

Link

[Jeroen]

Originally Posted by devarshi84

FCA merger will have so many brands, they will have to kill atleast a third of them. We have

Peugeot
CItroen
DS
Opel
Vauxhall
Aixam
Alfa Romeo
Abarth
Lancia
Fiat
Maserati
Dodge
Chrysler
Ram
Jeep

It is a pity that Chrysler USA will be at the receiving end. We can only hope that a merger brings only positive things on the table.

That is what I think as well. This whole size and scale of economy only works when you are able to heavily standardize across your various brands and models. Parts, platforms, production techniques, Sales en dealerships etc etc.

This new entity is big in top line, but underneath it is pretty messy. Will take a long time to clean up and internally align. It does make you wonder what it will mean for iconic brands such as Alfa Romeo and Maserati.

I wonder what made them decide to base the group from the Netherlands? Probably tax advantages. (Well kept secret, but the Netherlands is a bit of a tax haven for international companies!)

Jeroen

[StarrySky]

Vauxhall already fears the merger will lead to closure of factories in Britain: https://www.bbc.com/news/business-50246329

[ajmat]

What will happen. I predict the following for the brands

Peugeot - stays
CItroen - stay in Europe
DS - might be killed, never made it to the upmarket league- Well finished and styled but offers nothing beyond that
Opel - Stays but will be a stark more antiseptic version of the Peugeots
Vauxhall - almost dead - Brexit will kill it
Aixam - killed
Alfa Romeo - might be floated into a JV like Ferrari
Abarth - related to a sub brand, might get killed and re-appear later
Lancia - on its death bed - could never aspire to be the Italian Mercedes, it had its time
Fiat - It should be killed, it makes nothing worthy beyond the 500, will only survive if the next 500 is based on the Peugeot 208/Corsa
Maserati - killed unless relaunched as electric
Dodge - still a brand for trucks - might be killed if Ram dominates
Chrysler - killed - does not mean anything in the present
Ram - killed or becomes a sub brand
Jeep - keep

[SankalpDesai]

It's official - Fiat Chrysler and Peugeot agree to pursue giant auto merger

Came across this news article this morning. Seems like the giants are willing to take the plunge, creating world's 4th largest automotive empire.

https://www.ft.com/content/11e7b5c8-...4-36acbbb0d9b6

Interesting times.