Fiat Chrysler and Peugeot agree to $50 billion merger

by SpeedLux
Peugeot 208

Fiat Chrysler and Peugeot maker PSA deal with the challenge of winning over regulators and delivering on a commitment to cut costs without shutting down factories after sealing a binding deal to form the world’s fourth biggest automaker.

Both tasks are likely to prove difficult, as two of the industry’s oldest dynasties attempt to combine significant European operations under the gaze of politicians and trade unions who have pledged to resist any move to slash jobs.

Success is important to help both firms deal with a downturn in demand and the cost of making cleaner vehicles to meet strict emissions regulations.

In a sign of the pressures on the broader industry, Volvo agreed on Wednesday to sell its Japan-based UD Trucks business to Isuzu Motors and share technology in order to help cut expenses.

France’s PSA and Italian-American Fiat Chrysler Automobiles (FCA) declared a preliminary deal six weeks before for an all-share merger that would form a company worth about $50 billion and unite brands including Fiat, Jeep, Dodge, Ram and Maserati with the likes of Peugeot, Opel, and DS.

The terms were little modified in the binding deal declared on Wednesday, including a target to cut expenses by 3.7 billion euros ($4.1 billion) a year without shutting factories.

However, experts stated the effective premium being paid by PSA to achieve the 50-50 split was slightly lower.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

SpeedLux

SpeedLux is a high-authority automotive blog providing the latest automotive news and reviews. SpeedLux covers everything related to cars, bikes, and motorcycles, from news and reviews, to troubleshooting guides, tips and tricks, and more. SpeedLux was born in 2009 and we have over 20,000 articles published on our blog. We thank all our readers, as well as our partners, without whom we could not have reached this level.

Subscribe

©2009 – 2024 SpeedLux – Daily Automotive News and Reviews. All Right Reserved.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More