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Fiat and PSA agree merger deal

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Friday, December 20, 2019

Fiat Chrysler Automobiles (FCA), and Groupe PSA, owners of Peugeot, Citroen, Opel/Vauxhall and DS, have reached agreement on a merger which will create the world's fourth largest volume car manufacturer.

The two groups have released a joint statement that says that the deals is advantageous for both groups as it provides PSA access to American markets, while FCA will benefit from PSA's more advanced electric vehicle technology.

The new business entity is owned 50/50 between PSA and FCA shareholders and will be chaired by current FCA Chairman John Elkann. The role of PSA CEO Carlos Tavares will now also expand to cover both FCA and PSA.

Carlos Tavares commented, “All the electrification know-how we have developed for the European market would be a very significant asset to bring to the US market for the appropriate level of improvement.”