Photo: FCA/PSA
The story that started out of the blue in May with Italian-American car company Fiat Chrysler asking the hand of Renault ends in December with FCA marrying another French beauty, PSA.
The news of FCA choosing its second-best option after the failure of the proposed merger with Renault first surfaced in October, but was made official on December 18 with the two companies announcing they struck a deal.
According to the joint statement, the two companies will merge into one, equally-owned, Dutch-based entity. It will be headed by FCA’s John Elkann as Group Chairman and PSA’s Carlos Tavares as Group CEO, aided by ten board members, equally named to represent both the French and the Americans.
Financially, the new group aims to become the 3rd largest in the world, as it estimates combined revenues of nearly €170 billion ($190 billion), and the world’s 4th largest by volume, with sales of 8.7 million cars each year.
At an official level, the two say there will be no plant closures as a result of the deal, as the estimated savings are of €3.7 billion in annual run-rate synergies ($4.1 billion).
"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 vigor and enthusiasm," said in a statement Carlos Tavares of PSA.
"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," added Mike Manley of FCA.
According to the joint statement, the two companies will merge into one, equally-owned, Dutch-based entity. It will be headed by FCA’s John Elkann as Group Chairman and PSA’s Carlos Tavares as Group CEO, aided by ten board members, equally named to represent both the French and the Americans.
Financially, the new group aims to become the 3rd largest in the world, as it estimates combined revenues of nearly €170 billion ($190 billion), and the world’s 4th largest by volume, with sales of 8.7 million cars each year.
At an official level, the two say there will be no plant closures as a result of the deal, as the estimated savings are of €3.7 billion in annual run-rate synergies ($4.1 billion).
"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 vigor and enthusiasm," said in a statement Carlos Tavares of PSA.
"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," added Mike Manley of FCA.
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