News | Published October 30 2019

Fiat Chrysler and PSA Group considering automotive merger

US-Italian automotive firm Fiat Chrysler is in talks over a merger with PSA Group, the French corporate entity that holds the Peugeot car brand.

It is the second time that Fiat Chrysler have discussed a merger deal in 2019 after a proposed “transformative” deal with market competitor Renault fell through in June.

Fiat Chrysler chairman John Elkann had pulled the plug on the Renault deal after French government officials threatened to stop the plans. 

They favoured Renault concentrating its efforts on resolving discord with its alliance partner Nissan before considering any new collaborations.

In the wake of the news of the prospective new merger, shares in Fiat Chrysler increased by nine per cent in Wednesday trading, with the deal between the two automotive giants potentially set to create a joint market value of around £39.9 billion [$50 billion].

Any merger would not only create one of the largest automotive firms on the planet, but it would also unify a number of well-known car brands including Alfa Romeo, Citroen, Jeep, Opel, Peugeot and Vauxhall.

Morningstar’s leading equity analyst Richard Hilgert said that the merger could culminate in the fourth-biggest automotive entity currently in existence, with the combined 2018 sales of Peugeot, Fiat Chrysler and joint venture partners in China  inferior only to those of Volkswagen, Toyota and the Renault-Nissan partnership.

The merger talks are still at an early stage, however, with much still to be done before any deal can materialise.

Carlos Tavares, PSA’s chief executive, is the candidate to lead the new joint venture should the merger go ahead, with Elkann set to stay in post. 

Related Stories

Authored by

Scott Challinor
Business Editor
October 30 2019

Featured Organisations

Walker & Son Hauliers

Founded during the Second World War, Walker & Son Hauliers have been operating for nearly 80 years. Generation after generation have assumed the mantl... Read more

Emerson House

Emerson House is a teaching centre in west London that addresses the special educational needs associated with dyslexia, dyscalculia and dyspraxia. Es... Read more

The New Hall Lane Practice

The New Hall Lane practice is situated in the centre of the city of preston, Lancashire. Thanks to high levels of deprivation in the practice’s patch,... Read more

Latest News