After failed merger talks with Groupe Renault, Fiat Chrysler Automotive (FCA) has now entered into a 50:50 merger with Groupe PSA to create forth-largest auto giant in the world.
Following some speculations, Groupe PSA and Fiat Chrysler Automobiles (FCA) Group have officially announced that both the companies will be entering into a 50:50 merger under a Dutch parent company. Both companies have officially given a nod to the collaboration and will be coming up with a Memorandum of Understanding in the coming weeks.
This new merger between Groupe PSA and FCA makes them the forth largest automaker in the world with over 8.7 million cars sold annually. This new merger will be headed by Group PSA CEO – Carlos Tavares, while FCA’s top boss John Elkann will serve as the chairman. Groupe PSA had been looking for a partner for some time now and they even had talks with Groupe Renault previously. However, both brands could not arrive at an agreement.
Carlos Tavares, Groupe PSA CEO, said: “This convergence brings significant value to all the stakeholders and opens a bright future for the combined entity. I’m pleased with the work already done with Mike and will be very happy to work with him to build a great company together.” The total combined revenues for both companies in 2018 stood at nearly 170 billion Euros and a recurring operating profit of over 11 billion Euros.
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Mike Manley, FCA CEO, said, “I’m delighted by the opportunity to work with Carlos and his team on this potentially industry-changing combination. We have a long history of successful cooperation with Groupe PSA and I am convinced that together with our great people we can create a world class global mobility company.”
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Under the Fiat Chrysler Automotive (FCA) Group, there are brands which include Fiat, Jeep, Alfa Romeo, Maserati, Ram, Lancia and Chrysler. Similarly, Groupe PSA owns Peugeot, Citroën, DS and Vauxhall-Opel. With some of the biggest car brands in the world under one umbrella, this merger creates a car giant worth around GBP 40 billion. The total combined revenues for both companies in 2018 stood at nearly 170 billion Euros and a recurring operating profit of over 11 billion Euros.
