PSA and FCA – merger agreed by end of year

THE proposed merger between PSA (with its Peugeot, Citroen, DS, Vauxhall and Opel brands) and FCA (Fiat, Alfa Romeo, Maserati, Jeep, Chrysler, Dodge and Ram) could be tied up by the end of the year, according to reports.

As we closed for press, both groups had told employees that a binding agreement would be signed within the coming weeks. The combined organisation is expected to be led by PSA CEO Carlos Tavares, with the global head count at both companies around 200,000 employees each, despite FCA having more brands.

While a merger would create the world’s fourthlargest car maker, with global sales in excess of 8.5 million units, synergies in low-CO2 technologies and powertrains are expected to benefit both groups, especially FCA, while greater access to the Italian and US markets would particularly benefit PSA.

In spite of union leaders expressing concern about Vauxhall’s Ellesmere Port plant in Cheshire, rumours have suggested that the merger could actually benefit workers. It’s possible that the UK plant could become a specialist factory building right-hand-drive cars from various brands, using PSA’s EMP2 platform.

If FCA cars were to use that technology – very likely, so that costs can be cut by reducing the number of platforms used – even more models could be built at Ellesmere Port. Tavares has promised to decide on the plant’s future before the new Astra arrives in 2021. The Astra Estate is the only model