The Strategist

Fiat Chrysler, Peugeot sign merger

12/18/2019 - 09:09

American-Italian automobile concern Fiat Chrysler and French carmaker giant Groupe PSA (Peugeot Societe Anonyme) have signed a merger agreement. This was announced on Wednesday by the press service of the French automaker.

Akhmad Fauzi
Akhmad Fauzi
"Fiat Chrysler and Groupe PSA today signed an agreement to merge their businesses in order to create the 4th largest car manufacturer in terms of production and the third largest turnover in the world," the statement reads. It is noted that implementation of the agreement will take about 12-15 months. The new combined company intends to sell about 8.7 million cars a year, the total revenue of the giant will amount € 170 billion, and operating profit - € 11 billion.

“Our merger is a great opportunity to take a stronger position in the automotive industry as we strive to master the transition to a world of clean, safe and sustainable mobility and provide our customers with world-class products, technologies and services,” said PSA President Carlos Tavares .

The parent company will be based in the Netherlands, the shares of the new concern will be placed on the Paris, Milan and New York stock exchanges. The board of directors will include five people from each car concern, and will be chaired by the president of Fiat Chrysler John Elkann. Tavares will be appointed Executive Director of the new company for a five-year term.

Earlier, representatives of Fiat Chrysler discussed the possibility of a merger with the French automaker Renault. The deal was not implemented. One of the reasons for this was that it was not approved by the French authorities.