Possible FCA-PSA Merger News
Oct 31th, 2019
To All Canadian FCA Dealers,
We are pleased to share that earlier today we announced that FCA and Groupe PSA plan to join forces to build a world leader for a new era in sustainable mobility.
We believe this combination offers the opportunity to add value across the board – for FCA, PSA and all our stakeholders. The combination, which would be structured as a 50/50 merger, would create the 4th largest global OEM with annual sales of nearly 9 million vehicles and the scale, capabilities and resources to capture successfully the opportunities and manage effectively the challenges of the new era in mobility.
The combination would unite the groups’ respective brand strengths across Luxury, Premium, Mainstream Passenger Car, SUV and Trucks & Light Commercial – making them stronger together. It is important to note the synergies of the proposed transaction are not based on plant closures; they will be derived principally from investment efficiencies from sharing vehicle platforms, powertrains, technologies and enhanced purchasing power. The extended portfolio would cover all market segments with iconic brands and strong products based on rationalized platforms and optimization of investments.
PSA is a like-minded partner of whom we have long standing mutual knowledge and respect. PSA also shares our vision for the future. Long before our merger discussions, both companies had been investing heavily in the development of transformative technologies that will define the next generation of sustainable mobility. Both companies have also established a range of specialist partnerships that have contributed to the development of our technologically advanced products and allowed us to push mass electrification across all brands. Our aligned strategies and highly compatible cultures lay the foundation for a new group that can effectively address the challenges of the new era in mobility.
I want to stress, we are only in the beginning stages and there is no certainty that discussions will result in a transaction, but if successful, the merged entity will be at the forefront of innovation, combining the companies’ extensive and growing capabilities in technologies, including electric powertrain, autonomous driving and digital connectivity. Teams at both companies are working to finalize discussions and reach a Memorandum of Understanding in the coming weeks.
In the meantime, nothing has changed and it is business as usual at FCA.
I know you have questions, but until we conclude our discussions we may not have all the answers. I will endeavor to keep you informed with updates in due course. Today’s announcement can be found on our website at www.fcagroup.com.