Fiat Chairman Says Next European Car Alliance May Involve PSA
A Peugeot spokesman declined to respond to Marchionne's remarks. PSA Peugeot Citroen, Europe's second largest carmaker, broke off talks last month involving an equity swap with Mitsubishi Motors Corp. but vowed to strengthen further cooperation even if an agreement hasn't been reached. The Italian CEO has said before acquiring 20 percent of Chrysler in June last year that an alliance with PSA would be a "marriage made in heaven".
Last year, Fiat produced 2 million cars, while Chrysler managed to shift 1.3 million. However, the combined output of the two companies is still far away from Marchionne's goal of at least 5 million units a year. Marchionne has repeatedly said that in order to survive globally, an international carmaker needs to build at least 5 million cars a year. Peugeot Citroen sold 3.2 million vehicles last year, so a potential merger between Fiat and PSA would put the resulting company well over that ideal yearly sales figure. The deal could make sense to the French company as well, which is looking to share development, parts and production costs with their Italian counterparts.