Thu, 31 Oct 2019 | MERGER
Fiat Chrysler Automobile (FCA) and Groupe PSA have confirmed plans to pursue a merger, creating a business that would have a combined revenue of nearly €170 billion.
Announcing the plans, the two groups said the merger followed "intensive discussions between the senior managements of the two companies" and that they intended to build a "world leader for a new era in sustainable mobility".
The new group will be owned 50 per cent by Groupe PSA shareholders and 50 per cent by FCA shareholders and will be the world’s fourth-largest original equipment manufacturer (OEM) by unit sales.
The group will have an 11 person board, with 6 members appointed by PSA, including its chief executive Carlos Tavares, and 5 members appointed by FCA.
Along with its €170 billion revenue, the group would have recurring operating profit of more than €11 billion and combined vehicle sales of 8.7 million, putting it ahead of General Motors and Hyundai-Kia in terms of sales.
FCA has 102 manufacturing facilities, 46 research and development centres and operates through dealers and distributors in over 135 countries. Its brands include Chrysler, Fiat and Jeep. France’s Groupe PSA is present in around 100 countries, with brands including Peugeot, Citreon and Vauxhall, which employs 3,000 people in the UK.
Groupe PSA chief executive Carlos Tavares said that "This convergence brings significant value to all the stakeholders and opens a bright future for the combined entity.”
While FCA chief executive Mike Manley added: "I'm delighted by the opportunity to work with Carlos and his team on this potentially industry-changing combination. We have a long history of successful cooperation with Groupe PSA and I am convinced that together with our great people we can create a world class global mobility company."
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