PSA Not Afraid of Possible Fiat-Opel Alliance

A potential merger between Fiat and Opel doesn't scare the PSA Peugeot Citroen group that might become the main rival in Europe, a PSA board director said. According to a report by La Repubblica, Jean-Philippe Collin, head of the Peugeot brand, said that automakers across the world would better concentrate on products and clients rather than on forming alliances.

"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," Collin 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."

But what's interesting is that PSA has also been linked with a possible alliance with Fiat as part of the so-called Eiffel plan announced in March. At that time, 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.

The Eiffel merger plan would have created a huge car manufacturer, with its headquarters in Paris and Marchionne as chief of operations. In return, PSA would have supported the merger costs, with other lion shares undisclosed. Furthermore, the Italian automaker would take a large stake in the French group, with rumors indicating that a 41 to 45 percent share likely to be considered.

At this time, nobody can say for sure if the Eiffel plan was indeed true as Fiat completed the alliance with Chrysler and is now seeking to purchase German unit Opel.