Coronavirus threatens merger of Fiat Chrysler and Peugeot

Coronavirus threatens merger of Fiat Chrysler and Peugeot

March 26, 2020 0 By autotimesnews

The full merger agreement between PSA Group and Fiat Chrysler Automobiles (FCA) may not be completed before the due date due to the spread of coronavirus.

The agreement, which was supposed to enable the new alliance to become the fourth largest auto conglomerate, was on the verge of collapse.

This is due to the fact that the economy collapsed in the leading world markets, in particular, in America and Europe, with a stop in the production of cars at the largest auto enterprises around the world, and also with a decrease in the volume of sales of new cars.

 In addition, analysts of the two corporations will be forced to revise plans for the implementation of the project and the amount of investment previously announced before the coronavirus. Now the parties will have to take into account the large unplanned expenses for overcoming the crisis.

At the same time, the PSA and FCA merger working groups formed at the end of 2019 continue to work on the project.