Fiat Chrysler and PSA Group signed an agreement to merge in a new automotive Alliance.
As reported by Automotive News, the two automakers signed an agreement to merge. The transaction is valued at $ 50 billion, and the merger will be the emergence of the fourth-largest automobile Alliance in the world.
The unification process will take approximately 12 to 15 months, according to the agreement signed today. The Board of Directors of the Association will consist of 11 people, 5 people from each group, plus the head of the conglomerate. For this position selected the current head of PSA and Carlos Tavares. The boss of the newly formed group will be elected to this position every 5 years.
According to analysts, the merger will allow to save annually about 3.7 billion euros through joint development projects and the use of common platforms and technologies. Before joining one of the largest shareholders of PSA, the Chinese Dongfeng Motor Group, sold a 12.2% stake in the French automaker to the amount of 679 million euros.
In the merger, FCA will have access to more modern automotive platforms PSA that will help him to meet new, more stringent environmental standards. In turn, the PSA will benefit from the lucrative business of FCA in the USA, which represents such brands as Ram and Jeep.
The new concern will annually produce and sell approximately 8.7 million vehicles worth about $ 46 billion. He ranks fourth in the world after Volkswagen Group, Toyota Motor and Renault-Nissan Alliance.