Fiat Chrysler/PSA merger talks appear to be real this time: Here’s what it means
This time FCA and PSA Group are really flirting
Like the idea of a Dodge 508 wagon? How about a Peugeot Charger? Citroen Town & Country, anyone? Following rumors Oct. 29, Fiat Chrysler Automobiles and PSA Group confirmed they are talking about a possible merger, a move that would create, as an FCA statement pointed out, “one of the world’s leading mobility groups.” PSA consists of Peugeot, Citroen, DS and Opel/Vauxhall. An FCA/PSA get-together would create a company with a roughly $47 billion market value—about the same size as Honda.
PSA CEO and former race car driver Carlos Tavares, who would be CEO if the merger happens, has been saying for a couple of years that PSA would return to the U.S. after nearly a 30-year absence. This move would give PSA instant access to FCA’s dealers, rather than establishing its own network. Analysts are generally positive about the potential move, pointing out Tavares’ track record in turning Opel around.
Mergers are all the rage these days, with General Motors and Honda co-developing autonomous cars, Toyota developing EVs and batteries with Chinese automaker BYD Co. and Volkswagen working with Ford on both autonomous cars and EVs.
That said, the French government, a major PSA shareholder, would play a big role in any deal. Recall about five months ago that French politicians resisted plans for FCA to merge with Renault. Those talks eventually died.
A merger could work this time around: FCA could certainly use PSA’s small gas sippers and PSA could tap into, say, Jeep. Bring on the Opel Gladiator!