A merger of Fiat Chrysler and Peugeot under threat

FineAuto
A merger of Fiat Chrysler and Peugeot under threat

Agreement on a full merger of corporations PSA Group and Fiat Chrysler Automobiles (FCA) may not be held before scheduled time due to the spread of the coronavirus. Such information shared to the portal by AFP, based on its sources.

The agreement, which was to enable the new Alliance to become the fourth largest autocorrelator, was on the verge of collapse.

This is due to the fact that collapsed the economy leading the world market, particularly in America and Europe, with a stop of manufacture of cars of the largest automobile companies worldwide, and even with the decline in sales of new cars.

//

In addition, analysts of the two corporations will be forced to revise plans for the implementation of the project and the amount of investments previously announced by the coronavirus. Now the parties will have to take into account large unplanned expenses to resolve the crisis.

At the same time, working groups to merge PSA and FCA, formed in the end of 2019, continue to work on the project.

News tags