Fiat Eyeing PSA Merger

With reports already hinting that Magna International and its Russian allies will become the new Opel owner, the Italian automaker Fiat is now looking for other companies to merge with. One possible target would be PSA Peugeot Citroen, writes, which somehow backs Sergio Marchionne's comments who said that "there's life after Opel".

“If the Opel transaction is not available to Fiat, life will move on. We’ll just be focusing on what we have," he said.

Fiat's new goal is now to purchase a stake in the American automaker Chrysler, the aforementioned source added, but it might seem like the Italian automaker is already eyeing some new mergers. One of the targets is GM's Latin American operations and Saab but a takeover of the Swedish brand is quite an unlikely scenario since it shares lots of parts with Opel, Marchionne said.

A merger with PSA Peugeot Citroen would create the Europe's largest automaker, just like stated in the Eiffel plan we told you about back in March. At that time, Fiat's CEO Sergio Marchionne commented on the rumors by saying that "everyone talks with everyone", hinting that a potential merger could be made at any time. However, both PSA and Fiat denied speculations regarding the fusion.

"We do not fear a possible alliance between Fiat and Opel. The car world is certainly not in its first phase of consolidation, we have always been working in a competitive scenario," Jean-Philippe Collin, head of the Peugeot brand said. "In periods like this, of scarce liquidity, the best thing is to concentrate resources on few and selected activities: renewing products, strengthening the network and satisfying clients."
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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