A New Consolidation in Automotive Industry - FASTENER EUROPE MAGAZINE
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A New Consolidation in Automotive Industry:FCA and PSA Agree to Merger

Fiat Chrysler (FCA) and Peugeot (PSA) automotive companies announced the decision to merge. According to the official statement made by the company officials today (October 31, 2019), the merger will be 50% -50% partnership.

Stating that they are in the process of preparing the agreement that will give birth to a new company with a worth of 50 billion dollars in the aftermath of the merger, the company officials announced that the new company will be based in the Netherlands and will have branches in Paris, Milan, and New York. Carlos Tavares, PSA's Chairman of the Board of Directors, is expected to assume the position of Chief Executive Officer of the new company, while John Elkan, head of FCA, is expected to become Chairman of the company.

As a result of this merger, which is the latest example of the consolidation trend in the automotive industry in recent years, brands such as Fiat, Jeep, Dodge, Chyrsler, Peugeot and Opel will be united under one roof. Strategically speaking, FCA will benefit from PSA's more modern and high-tech manufacturing platform, while PSA will benefit from FCA's strong position in the US market. After the merger, the company will have an annual production capacity of 8.7 million cars and will rank fourth in the world after Volkswagen, Toyota and Renault-Nissan.