Fiat Chrysler Automobiles and Peugeot are in talks about merging

FineAuto
Fiat Chrysler Automobiles and Peugeot are in talks about merging

Two large car manufacturers can create a single group. In this case, Fiat, Ram, Citroen, Opel and other companies will be combined into one of the largest in the world market.

In the Wall Street journal recently, it was reported that Italian-American automaker Fiat Chrysler Automobiles (FCA) and PSA, the French parent company of Peugeot, Citro?n, and a luxury premium car DS may unite in one single group, whose total cost will be in the region of $ 50 billion.

According to one source, discusses the option of a merger on equal terms. In this case, the President of PSA, Carlos Tavares needs to stand at the head of this Association. In turn, John Elkann, is Chairman of the boards of Directors of FCA will take a similar position in the new Alliance.

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Another source claims that while there is no guarantee that the unification of the major automakers will still take place.

In may of this year, the FCA has offered Peugeot a deal for the merger, in this case, the new Alliance would become the world’s third automaker after Volkswagen and Toyota, but in June the French government, the main shareholder of Renault, refused such ideas.

PSA is a French band formed in the 1970s. In 2017, the year it acquired the General Motors brands Opel and Vauxhall.

Who will benefit from the merger?

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