Electric drive, autonomous driving, diesel scandal: The challenges of the automotive industry are great. With PSA and Fiat Chrysler, two very large companies are now seeking a future together.
The merger could, according to a joint statement, bring synergies worth EUR 3.7 billion a year. There is talk of a merger of equals.
The balance in the auto industry, however, would shake a merger. It would result in the number of vehicles sold, the world's fourth largest carmaker. Around 400,000 employees would be employed there. For the Italian-American Fiat Chrysler Group, PSA's advances in new drive technologies are likely to be of interest. For the French PSA Group, to which, in addition to Peugeot, the German manufacturer Opel, among others, could also gain access to the important US market. Because on him Fiat Chrysler is traditionally strong and has a large sales network.
"France has to be proud"
Accordingly, France also welcomed the talks on a merger. The proposed merger was an answer "to the need for the auto industry to consolidate," said French Minister of Economy and Finance Bruno Le Maire. "France must be proud of its auto industry, which has demonstrated its ability to research and innovate." The shares of the PSA group, which outperformed low-emission technologies compared to Fiat Chrysler, nevertheless fell sharply on the stock market - while the securities of the Italian-American group rose significantly in value.
The merger negotiations became public on Wednesday. "There are ongoing discussions aimed at creating one of the world's leading mobility groups," wrote the corporations. Fiat Chrysler had only wanted to connect with the French manufacturer Renault in the spring, but the talks failed. PSA boss Tavares also announced in mid-September that he wanted to concentrate on himself first. But this time seems to be over quickly.
The current merger plans also cause concern in Germany. The union IG Metall has demanded to maintain Opel's independence even after a merger. It will be used, explained Jörg Köhlinger, district manager of the IG Metall district Mitte. He also referred to the 2018 negotiated with Opel collective agreement, which excludes redundancies until 31 July 2023.
Thomas SAMSON / AFP
PSA plant near Paris: Rolling Peugeot cars soon also increased in the US?
Whether and if so to what extent jobs are threatened by the merger is still unclear. According to experts, there is a risk of overcapacity - even at Opel.
PSA had taken over the Rüsselsheim brand a good two years ago by the US manufacturer General Motors and renovated. During the austerity program, more than 6,000 employees at the German plants signed contracts for partial retirement, early retirement or severance pay. Originally, the IG Metall had approved only a reduction of 3700 jobs. The news agency AFP reported, however, that the merger should "work without factory closures". What that means is open.
The merged group would include, in addition to Opel, among others, the following brands: Peugeot, Citroën, Alfa Romeo, Chrysler and Maserati. Only the car companies Volkswagen, the manufacturer alliance of Renault, Nissan and Mitsubishi and the Japanese carmaker Toyota sell more cars worldwide than PSA and Fiat Chrysler together. Their plans foresee that the shareholders of both sides each hold 50 percent of the capital of the new group and, accordingly, to divide the "fruits of this rapprochement" on an equal footing. The merged group will be based in the Netherlands.
REUTERS / Christian Hartmann
Carlos Tavares: Currently Head of PSA, in the future probably even more powerful Director-General
The new board of directors is said to be composed of eleven members: five would be nominated by Fiat-Chrysler and five by PSA. General Director should be the current PSA boss Carlos Tavares. Shareholders also want to have a say in the merger: PSA is also the French state's largest shareholder - holding 12.23 percent of the shares and 9.75 percent of the voting rights through a promotional bank. Also, the Peugeot family and the Chinese manufacturer Dongfeng are involved in large parts of PSA.
