Groupe PSA and FCA agree huge merger deal
19th Dec 2019 Danny Morgan
Groupe PSA, which owns Peugeot, is to merge with Fiat Chrysler (FCA) to create the world’s fourth largest carmaker.
The French-based Groupe PSA merger with FCA had been on the cards for some time, but the deal has finally been announced. It results in one of the world’s largest car manufacturers.
According to the announcement, the new entity will have “the leadership, resources and scale to be at the forefront of a new era of sustainable mobility”.
The merger comes amid huge change in the automotive industry as car makers across the globe strive to meet new challenges, particularly in the area of car electrification and other sustainable mobility advances.
It is hoped the new business entity, which will have an estimated revenue of €3.7billion will have greater resource and investment capability to meet these challenges.
Carlos Tavares, Chairman of the Managing Board of Groupe PSA, said: “Our merger is a huge opportunity to take a stronger position in the auto industry as we seek to master the transition to a world of clean, safe and sustainable mobility and to provide our customers with world-class products, technology and services. I have every confidence that with their immense talent and their collaborative mindset, our teams will succeed in delivering maximized performance with vigour and enthusiasm.”
Mike Manley, Chief Executive Officer of FCA, added: “This is a union of two companies with incredible brands and a skilled and dedicated workforce. Both have faced the toughest of times and have emerged as agile, smart, formidable competitors. Our people share a common trait - they see challenges as opportunities to be embraced and the path to making us better at what we do."