Fiat Chrysler and Groupe PSA Confirm Merger Deal
Automobile giants Fiat Chrysler and Groupe PSA have today confirmed details of their merger deal. The deal will see the creation of the 4th largest car manufacturing company in the world.
Fiat Chrysler, is owner of car brands including Fiat, Alfa Romeo, Chrysler, Abarth and Jeep. French company PSA is responsible for the manufacture of some of Europe’s best-known brands including Peugeot, Citroen, Opel/Vauxhall.
The intention to merge was first announced back in October. A statement issued this morning confirming the details of the merger said the new company will have annual sales of 8.7 million vehicles with revenues of nearly €170 billion.
The new group’s Dutch-domiciled parent company will be listed on Euronext (Paris), the Borsa Italiana (Milan) and the New York Stock Exchange.
Before the merger is completed, China’s Dongfeng Motor Group will be cutting its stake in the French car manufacturer by selling 30.7 million shares to Groupe PSA, resulting in an ownership of 4.5% in the new group.
Completion of the proposed combination is expected to take place in 12-15 months.
Concerns had been raised previously about job losses in the UK when in June of this year, PSA announced that Rüsselsheim in Germany had been chosen as one of two European locations for the manufacture of its next generation Vauxhall/Opel Astra.
Groupe PSA employs 3,000 people in the United Kingdom, as part of its manufacturing business. Over 1,000 of these are employed at the Ellesmere Port plant in Cheshire in the North West of England.
In a statement issued at the time, the company said, ‘The decision on the allocation to the Ellesmere Port plant will be conditional on the final terms of the UK’s exit from the European Union and the acceptance of the New Vehicle Agreement, which has been negotiated with the Unite Trade Union.’
Carlos Tavares, Chairman of the Managing Board of Groupe PSA, will be Chief Executive Officer of the new group for an initial term of five years.
Commenting on the merger, Mr. Tavares said, ‘Our merger is a huge opportunity to take a stronger position in the auto industry as we seek to master the transition to a world of clean, safe and sustainable mobility and to provide our customers with world-class products, technology and services. I have every confidence that with their immense talent and their collaborative mindset, our teams will succeed in delivering maximized performance with vigour and enthusiasm.’
(Image: Groupe PSA, Direction de la Communication)