Automotive Concern FIAT Chrysler Automobiles (FCA) Combines with PSA Peugeot Citroen Opportunities to merge, which Wall Street Journal writes.
Fiatchrysler and PSA Peugeot car manufacturers have agreed to merge companies on a parity basis. As a result, the transaction will be formed by the «transatlantic» company worth $ 50 billion.
The parties expect to combine efforts to develop electric vehicles and self-governing machines, exchange technologies and reduce costs.
The United Company will be headed by the CEO of PSA Carlos Tavares, and at the head of its board of directors it will take this position in Fiat Chrysler John Elkan. The Council will be 11 people, including Tavares.
It is expected that sales of a new alliance will be about 8.7 million cars a year with an annual revenue of 190 billion euros.
Participants in the global automotive industry continue to consolidate and form unions to develop electric vehicles, autonomous cars, as well as for joint investment in the development of technologies and equipment systems. Often such unions lead to a merger.
Experts believe that the association of PSA and FCA could create an interesting structure in terms of markets. So, FCA, occupying strong positions in the US market, sold in Europe only about a million cars. PSA, on the contrary, are more successful in Europe — 2.5 million cars sold in 2018. At the same time, PSA seeks to strengthen its position in the US market.
By the way, in the Russian market, according to the «Avtostat Info», for the first three quarters of 2019, only 279 passenger cars of the Fiat brand were sold (+ 163% by last year). From this quantity 208 Fiat Doblo and 71 cars are sold Fiat 500 cars.
Recall that earlier negotiations on the FCA Alliance conducted with Renauult Group. But they did not end with anything, and the negotiations of the top manager Renault Thierry Ballore fired.
As for the French brands, they left the US market as early as the 70s and 1980s of the last century.