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Groupe PSA Could Merge With FCA, Talks Are Currently Underway

Ever since Sergio Marchionne was running the company, Fiat Chrysler Automobiles was open to mergers. FCA has even pushed their scheme on General Motors and the likes, but so far, nothing much has come to fruition.
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Groupe PSA is the latest possible partner for the ailing Italo-American company, and both parties have confirmed that talks are currently underway. Following multiple reports in the motoring and business media, Fiat Chrysler Automobiles came out with a short statement in regard to how the cookie crumbles.

“FCA confirms there are ongoing discussions aimed at creating one of the world‘s leading mobility groups”
and “FCA has nothing further to add at this time.” If the deal goes through, then PSA-FCA would level up to one of the biggest players in the industry. The fourth-largest automaker out there, to be more precise.

An all-share merger of equals is one of the possible scenarios, with Carlos Tavares heading the company as chief executive officer and John Elkann as chairman. Back in April 2019, there were reports that Groupe PSA and Fiat Chrysler Automobiles would develop electric vehicles together. An all-new platform designed to be as modular as possible was the starting point of the project, and given the latest communiqué, it’s fair to claim that the two parties agree to some extent.

The last time FCA tried to merge with another automaker, Groupe Renault was the possible partner. The Italo-American company didn’t go through with the deal, withdrawing from the merger by taking a direct aim at the French government for compromising their arrangements. The government wanted more control over the merged company to the detriment of the controlling shareholder in Fiat Chrysler Automobiles, namely the descendants of the Gianni Agnelli family.

Renault released another statement in September through chairman Jean-Dominique Senard, telling the French senate that the falling-out is behind them. The shrewd negotiators at Fiat Chrysler Automobiles are unlikely to rekindle their relationship with Renault, and thus, Groupe PSA has taken preference.

PSA currently owns five major automotive brands (Peugeot, Citroen, DS, Opel, and Vauxhall) while FCA controls Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Lancia, Maserati, and Ram. Ferrari was separated from Fiat Chrysler in October 2015, incorporating the Prancing Horse in the Netherlands.
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About the author: Mircea Panait
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After a 1:43 scale model of a Ferrari 250 GTO sparked Mircea's interest for cars when he was a kid, an early internship at Top Gear sealed his career path. He's most interested in muscle cars and American trucks, but he takes a passing interest in quirky kei cars as well.
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