Fiat Chrysler and the PSA Group confirm merger talks
FCA has been looking for a partner for forever, it seems, but it may have found one in the massive French car conglomerate PSA Group.
It feels like we've been talking about Fiat Chrysler and the PSA Group -- which is made up of Peugeot , Citroen and ex-GM brands Opel and Vauxhall -- merging forever now, to the point where it's all starting to feel a bit like a bad romantic comedy.
Well, according to a report Tuesday by the Wall Street Journal, we may be coming to the end of that particular movie. See, the word 'round the campfire is that FCA and PSA are seriously considering a "merger of equals" where the companies combine all stock. The new company would be helmed by PSA boss Carlos Tavares, and FCA's John Elkann would act as chairperson for the new entity.
Following the report, both FCA and PSA released separate statements on Wednesday that donned the same phrasing. "There are ongoing discussions aimed at creating one of the world's leading mobility groups." Neither automaker supplied additional details, however.
FCA has been casting around for someone to merge with for years now since before its legendary leader Sergio Marchionne died in 2018. Things came close with Renault, but that fell apart amidst that company's trouble with former CEO Carlos Ghosn. Also, Nissan and Mitsubishi , both of which are part of an alliance with Renault, weren't too keen on that merger either.
While PSA doesn't have a presence in the US currently -- though that's supposedly going to change if Tavares has his way -- the company is enormous, and if it does merge with FCA, the combined Voltron of Franco-Italian-American automobile production could be valued at over $50 billion.
While things are still in the talking phase, both companies are remaining tight-lipped, and neither FCA nor the PSA Group immediately responded to Roadshow's request for comment.
Originally published Oct. 29.
Update, Oct. 30: Adds confirmation of merger talks from FCA and PSA.
