Fiat Chrysler and Peugeot will maximize the process of full mergerApril 10, 2020
The Italian-American Fiat Chrysler Automobiles (FCA) and the French PSA Group will try to speed up the process of the full merger. This is with reference to the head of the PSA Carlos Tavares reports Automotive News.
At the same time, it was previously reported that a deal between two automakers may not take place in connection with the pandemic of the new coronavirus. This is due to the collapse of the economy in leading world markets, including in the USA and Europe, with a halt in production at the largest automobile plants around the world, as well as a drop in sales of new cars.
Now Tavares said that the PSA and FCA working groups created at the end of last year will speed up work on the project as much as possible. The deal will allow the parties to create the fourth automobile conglomerate in the world in terms of production and the third in terms of annual revenue. The cost of the new company will be about $ 50 billion.
The board of directors will have 11 members: five people each from the FCA and PSA, as well as one leader. The current head of Peugeot – Citroen, Carlos Tavares, who will also lead the PSA team, has been appointed chairman of the governing body. FCA will be led by Mike Manley, the current CEO of Fiat Chrysler.
It is assumed that a complete merger will allow FCA and PSA to significantly reduce the cost of developing future cars, as well as reduce the cost of manufacturing cars. According to the preliminary forecast, in the first year of its existence, the new alliance should sell 8.7 million cars worldwide and yield only Volkswagen, Toyota and Renault – Nissan – Mitsubishi in terms of sales. Annual income is estimated at 170 billion, and net profit at 11 billion euros.
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