Motoring

Fiat Chrysler to merge with PSA group

As mooted last month Fiat Chrysler and the owner of brands such as Peugeot, PSA group was considering a merger. Now the pathway is open to a 50:50 partnership after discussions agreed on the creation of a new group.

The global deal will combine the strengths of both companies to help meet new challenges, mainly the electrification of vehicles and attempts at autonomous mobility. FCA had already pulled out of an earlier plan to join Renault.

The planed combo would create the 4th largest global OEM. The markets where the partnership would excel include FCA’s strength in North America and Latin America and Groupe PSA’s in Europe.

The portfolio of vehicles would be strong with Luxury, Premium, Mainstream Passenger Car, SUV and Trucks & Light Commercial covered. 

Both companies’ have extensive capabilities now and planed for the future when it comes to sustainable mobility, including electrified powertrains, autonomous driving and digital connectivity.

But terms such as “synergies” always mean one thing, job losses. Don’t lose sight of that.

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