Peugeot merger talks progressing well, says CEO Michael Manley

FCA Peugeot

Fiat Chrysler’s CEO Michael Manley stated on Wednesday that merger talks with Peugeot owner PSA to form the world’s No. 4 automaker are progressing well and he hopes to have a deal completed under 12-14 months.

Discussing with Reuters on the sidelines of an industry meeting, Manley said he doesn’t expect any major hindrance that could delay a final agreement.

“Talks are progressing really well,” Manley stated about negotiations with the French automaker ahead of a briefing by the European Automobile Manufacturers Association (ACEA), of which he is president.

His comments come a month following the agreement between the two automakers regarding a binding deal worth about $50 billion to combine forces in response to a downturn in global demand and mounting costs of making cleaner vehicles amid stricter emissions regulations.

Manley’s timeline for finishing the deal by early 2021 is in line with a forecast made by the companies last month.

Both automakers are now getting into the details of how the merger is going to work, including selection of vehicle platforms – the technological underpinnings of a vehicle – will fit which items in a combined company.

Because consumers in different locations still prefer largely different cars, there is room for multiple platforms in a combined group, Manley stated.

“That global platform is an elusive beast,” he added. “This concept of a massive global platform in my mind is nearly a myth but that doesn’t mean to say we’re not going to recruit major volume.”

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