Who will survive the merger?
There is a chance one or more famous brands could be for the chop in the FCA/ PSA merger, writes
Despite PSA chief executive Carlos Tavares seemingly calming concerns of a brand rationalisation, automobile shoppers across the globe are still likely to see fewer vehicles and brands if the merger of Fiat Chrysler and France’s PSA goes through. But the new company will be big enough to compete in a fastchanging business that requires vast sums of money to develop autonomous and electric vehicles.
In an interview with French television channel BFM Business, Tavares indicated that no immediate change would be planned for any of the underperforming brands in the two car makers’ lineups, saying ‘‘I see that all these brands, without exception, have one thing in common: a fabulous history.
‘‘We love the history of car brands, it gives us a foundation on which we can project ourselves into the future. So today, I don’t see any need, if this deal is concluded, to remove brands because they all have their history and they all have their strengths,’’ Tavares said.
The two companies announced the merger that, if finalised, will create the world’s fourth-largest auto company worth US$50 billion (NZ$78.3b). But PSA will have the upper hand, with its cost-cutting chief executive Tavares in charge and PSA controlling the new company’s board.
Both companies still have to agree on final provisions, but the deal could close by the end of the year.
Tavares, who used to run Nissan in the Americas and knows the United States market well, will not shy away from trimming unprofitable models and brands.
He’s credited with turning around the Opel and Vauxhall brands in Europe, perennial money losers which PSA acquired from General Motors two years ago.
Bernstein analyst Max Warburton wrote in a note to