Fiat Chrysler and Peugeot plan to create world's No.4 carmaker

jack_christie

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Fiat Chrysler, Peugeot tie-up - how does it work?

The following are some of the key elements of the deal:
** Fiat Chrysler Automobiles (FCA) and PSA aim to reach a binding agreement to create a $50 billion company in the coming weeks.

** The combined automaker would have annual sales of 8.7 million vehicles, total revenues of nearly 170 billion euros ($190 billion) and recurring operating profit of more than 11 billion euros, based on aggregated 2018 results.

** The new group would be domiciled in the Netherlands, with listings in Paris, Milan and New York.

** PSA Chief Executive Carlos Tavares would be the group’s CEO. FCA Chairman John Elkann would become chairman.

** The merged group would have 11 board members, six from Peugeot including Chief Executive Carlos Tavares, and five from FCA including Chairman John Elkann.

** The merger, once completed, is expected to generate 3.7 billion euros in annual synergies. The two groups say no plants would be closed.

** Prior to completion of the deal, FCA would pay its shareholders a 5.5 billion euro special dividend. It would also hand investors its shares in robot-making unit Comau, which will be spun-off.

** Also prior to completion, Peugeot would distribute its 46% stake in auto-parts maker Faurecia (EPED.PA) to its shareholders.

** Under the deal, major shareholders Exor (EXOR.MI), French state bank Bpifrance Participations and the Peugeot family would be subject to a three-year lock-up period. In that time, the Peugeot family would be allowed to increase its shareholding by up to 2.5% only by acquiring shares from Bpifrance Participations and China’s Dongfeng Motor Group (DFG).


** A seven-year standstill period following completion of the merger - when extraordinary operations affecting governance cannot be carried out - would apply to shareholders Exor, Bpifrance Participations, DFG and the Peugeot family.

** According to sources, FCA is being advised by Goldman Sachs and its independent board members by D’Angelin. PSA is being advised by Mediobanca’s Messier Maris & Associes unit and Morgan Stanley, with Perella working for its independent board member. Lazard is advising Exor.

** Exor, the holding company of the Agnelli family which controls FCA with a 29.2% stake, will become the new automaker’s single largest investor, with a 14.5% stake.
https://www.reuters.com/article/us-fiat-chrysler-m-a-psa-factbox/factbox-fiat-chrysler-peugeot-tie-up-how-does-it-work-idUSKBN1XA1BM
 

public

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I like how Peugeot-Citroën is circling back to Chrysler Europe, an iteration of which it transformed into Talbot 40 years ago :p
 

bone

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so that makes alfa romeo, chrysler, dodge, fiat, jeep, maserati, ram, peugeot, citroen, DS and opel?

oh well, nothing of value was lost...
 

public

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so that makes alfa romeo, chrysler, dodge, fiat, jeep, maserati, ram, peugeot, citroen, DS and opel?

oh well, nothing of value was lost...
Ahem, you forget the most significant name of all, Lancia!
 

bone

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Lancia is still alive???
i thought that was killed off?

i you include the killed off brands, the list continues: Simca, Talbot, Berliet, Panhard, Mors
and probably many more...
 

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Lancia is still alive, producing just one model, the Ypsilon for the Italian market. It keeps topping the sales charts along with the Panda.
 

MWF

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So all of the snot boxes I don’t ever want to buy under one roof.
 

CraigB

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The fourth, and the worst, auto manufacturer. Truly, could there be a worse set of cars under one roof?
 

Blind_Io

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Take Mitsubishi away from Nissan and give it to Chrysler?
 

jack_christie

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Carlos Tavares was No2 to Carlos Ghosn at Renault.

GM lost US$20 billion in Europe since 1999 before selling Opel to PSA in March 2017.

In the 2018 financial year, Opel achieved an operating income of 859 € million. It is the first positive income since 1999.
https://en.wikipedia.org/wiki/Opel#cite_note-36


Sergio told us there'd be days like this.


In his now legendary "Confessions of a Capital Junkie" presentation in 2015, the then-CEO of Fiat Chrysler warned that the industry was plowing too much of its capital in the quest for too-skimpy profits, wasting money on redundant technologies and shredding shareholder value in the process.


The risks, he argued, would only grow as manufacturers scrambled to meet emissions and safety regulations and keep pace in connectivity, electrification and autonomous technology.
August 06, 2018
https://www.autonews.com/article/20180806/OEM01/180809886/why-sergio-s-confessions-deserves-a-second-look


In Carlos Tavares, Fiat Family Finds Heir to Marchionne Legacy

PSA, maker of the Peugeot brand, may not have been Elkann’s preferred partner -- another merger attempt with Renault SA fell through in June after demands by the French government proved insurmountable. But Tavares best fits the mold of Marchionne, a shrewd operator who passed away after a short illness in July 2018 at the age of 66.



Both men turned around businesses that from the outside looked beyond repair. Marchionne accomplished that feat with Fiat, before combining the storied Italian brand with Chrysler to gain a global footprint. Tavares revived Peugeot after it was saved from the brink. Two years ago, he managed a bold reversal when he took over Opel from General Motors Co. and successfully integrated the notoriously unprofitable asset.
https://www.bloomberg.com/news/articles/2019-10-31/in-carlos-tavares-fiat-family-finds-heir-to-marchionne-legacy

Carlos Tavares has done a bit of racing and rallying
https://www.driverdb.com/drivers/carlos-tavares/

https://www.ewrc-results.com/profile/78891-carlos-antunes-tavares/
 

Blind_Io

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Isn't the Challenger just a 300 chassis with coupe styling? Those things are massive when you get up close.
 

CraigB

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Take Mitsubishi away from Nissan and give it to Chrysler?
Then it's all bought up by a Chinese company who's name is like one of those poorly built bicycle trinkets you buy on Amazon or eBay. Ulvie or some such nonsense.
 

Tram13

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I wouldn't mind if the next Peugeot 508 utilised a RWD platform of the next Alfa Romeo Giulia...
 

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I'd much rather have diversity in the auto world rather than more badge-engineered bullshit. We already have enough of Same-Car-Different-Badge; if all these mergers keep happening we won't have any real competition in the market, there won't be any push to innovate or take risks. We will end up with a half-dozen automaker giants building the same boring cars targeted to a particular segment and some small boutique automakers.
 

Tram13

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I can't entirely disagree with that, but considering that one automotive platform costs a shitload of money, and that, whether we like it or not, we are probably in the era of last ICE cars, I'd rather see them team up here and there and make different variations of the same platform. Take for example the Giulia's platform. It's great that they made it, but it seems underutilised. We only have a mid-sized Alfa Romeo sedan and a compact Alfa crossover SUV. There's no coupe or convertible, there's no larger sedans, there's no station wagon... And Alfa Romeo couldn't and shouldn't cater to all those market needs.

I do agree that badge-engineering isn't the greatest thing out there, but I also understand why the manufacturers do it. That being said, IMO, it shouldn't be all of a black-and-white situation. Even if the manufacturers share a platform, it shouldn't mean they should just slap a differently styled body onto the badge-engineered variant. Give it different engines, set up the suspension a different way, make it a different body style. Fill the gaps in the market, don't create a lazy rebadge job.
 
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