Shares Surge As Peugeot Boss Says FCA Merger Is Possible

Shares in both Fiat Chrysler Automobiles and Peugeot have jumped following a suggestion that the French automaker is open to a merger with FCA.

The president of Peugeot family holding company FFP, Robert Peugeot, told French newspaper Les Echos that he would support a potential deal with FCA, Reuters reports.

“With them, as with others, the planets could be aligned,” Peugeot said.

While FCA declined to comment on the report, shares in the car manufacturer jumped by 5.2 per cent. Shares in Peugeot also rose by 2.7 per cent.

In recent weeks, both the boss of PSA Group, Carlos Tavares, and FCA’s new boss Mike Manley, have indicated they’re open to mergers. According to Tavares, the company views the likes of Fiat, General Motors, and Jaguar Land Rover as ideal partners.

FCA could be the perfect merger partner for PSA Group considering the Italian-American company’s strong presence across North America. By comparison, the majority of PSA Group’s sales are concentrated in Europe.

“PSA is essentially an EU pure play as things stand (roughly 90 percent of consolidated unit sales in EU) so an acquisition of a company with a broader reach would make strategic sense,” Evercore ISI analyst Arndt Ellinghorst said.

A merger has long been on the agenda for Fiat Chrysler Automobiles. For years, the late Sergio Marchionne actively pursued merging FCA with another company but his plans were pushed back by the likes of General Motors and others. In an automotive market where production and technology partnerships are becoming increasingly common, it seems as though FCA is eager to ensure it doesn’t miss out.

more photos...
  • Bash

    What? I didn’t see that coming. I hope it flies.!

  • PhilMcGraw

    I just hope their quality and reliability doesn’t take a hit by the merger. FCA has some major work to do in that field.

  • Ricardo Santos

    How ironic that Peugeot bought Chrysler Europe 40 years ago.

    • Graham

      That isn’t an example of irony.

  • charlotteharry57

    This article is somewhat misleading because PSA includes brands other than Peugeot. Like Citroen and the recently acquired brands from GM. It’s PSA and not Peugeot that would be merging.

    • Jp

      PSA stands for Peugeot Société Anonyme. It’s like talking about VW, it’s a brand but also a group.

  • GT

    He also speculates on a merger with GM. How interesting that would be, after both GM and PSA spittling off Opel from GM platofrms, engines etc and their plants to move away from GM IP, and they just join again.

  • Thetruthísntalwayspopular

    Well if they did, you can say goodbye to Lancia, DS, Chrysler and Jeep.

    • Jarosław Kotowicz

      Jeep? Why? As far I remember they are profitable.

      • Thetruthísntalwayspopular

        sorry I meant dodge

  • Hot Twink
  • OdysseyTag

    Italian, French, German, British and American all under one roof – what a thought.

Sebastien Loeb Takes Insane Peugeot 208 T16 Pikes Peak To A Hillclimb

The 208 T16 Pikes Peak pumps out 875 hp and hits 62 mph in a scarcely believable 1.8 seconds.

Florida Man Arrested For Going 100MPH Tells Cops “The Car Is A Ferrari And It Goes Fast”

29-year-old Gabriel Molina allegedly accelerated to 100 mph trying to evade the police.

One M3 To Rule Them All: Meet The Exquisite E30 Sport Evolution

The M3 Sport Evolution features a 2.5-liter inline-four with “just” 235 hp, but it looks and handles superbly .

Audi E-Tron Gets Charged By Captain Marvel In ‘Avengers: Endgame’ Spot

Audi’s MCU-themed digital short features Brie Larson’s Captain Marvel and the e-tron.

Ford Recalls 327,000 F-Series Trucks Over Fire Risk – Again

These F-Series models were first recalled in late 2018 over engine block heater cable issues.

Toyota La Coupe Prototype Is Real And Really Weird (Official Update)

Remember those patents we showed you? Here’s the Toyota La Coupe in the flesh.

2019 New York Auto Show: A-to-Z Guide To All The New Car Debuts (Day 2)

Want to know about every new car launching at the 2019 New York Auto Show? Read on.

Rivian To Launch Six Models By 2025, Will Build EVs For Others Including Amazon

Rivian has big plans for the future, but the company won’t offer a sedan.

Police Arrest 16 People After 100 Car2Go Mercedes And Smarts Stolen In Chicago

Police in Chicago have managed to recover most of the stolen Car2Go vehicles.

Lincoln MKZ Successor Could Go Rear-Wheel Drive And Feature A Familiar Name

A new report suggests the Lincoln MKZ successor could be called the Zephyr when it arrives in 2020.