Fiat Chrysler And PSA Group Reportedly In Merger Talks

Fiat Chrysler Automobiles and PSA Group are reportedly in talks about a potential merger that could create a trans-Atlantic auto giant.

Citing sources familiar with the matter, Wall Street Journal reports that one of the possibilities the two sides are discussing is an all-share merger of equals. In this case, PSA’s Chief Executive Carlos Tavares could become the CEO of the merged car makers, while John Elkann, FCA’s Chairman would assume the same position at the new company.

Also Read: Renault Boss Says FCA Merger Talks Are Gone But Not Forgotten

The sources also said that talks between Fiat Chrysler and the PSA Group are fluid at this point, with other options still under consideration. That means that there are no guarantees that the two car makers will eventually shake hands.

The reported talks come just months after Fiat Chrysler Automobiles withdrew its offer to merge with Renault, a deal that fell apart after the French government, which owns a 15 percent stake in the company, and alliance partner Nissan didn’t back the proposal.

Since then, Fiat Chrysler Automobiles left open the door to Renault in order to resume talks but to no avail. Peugeot-maker PSA Group had reportedly approached FCA earlier this year about combining the two companies but Fiat-Chrysler declined the offer.

A union between Fiat Chrysler and PSA Group would create a huge auto group with added scale and cost-cutting capability. The two car makers sold a combined 8.7 million vehicles last year, which would have ranked their potential fusion at fourth place, just ahead of General Motors, which sold 8.4 million vehicles.

PSA’s Tavares has expressed his interest into expanding in the US, a region where the French car maker has been absent for almost three decades. A tie-up with Fiat Chrysler could accelerate these plans and help gain a much wider access to the US market.

Fiat Chrysler would also gain more exposure to Europe, as PSA sold there 2.5 million vehicles there compared to FCA’s one million vehicles. A combined Fiat Chrysler- Peugeot Citroen company would sell almost as many vehicles in Europe as Volkswagen, which holds the region’s first place with a 24 percent market share.

more photos...
  • MarketAndChurch

    I only care about how Dodge, Alfa, SRT, and Maserati can gain from this.

    Don’t really care for Chrysler or FIat, and Jeep and Ram will always be fine.

    Dodge really needs new vehicles, as does Alfa and Maserati, and it would be cool to see SRT and the VIper come back.

    • Brian Regan

      I know nothing about PSA quality/reliability but at first glance I wouldn’t mind seeing the 208 GTI and 308 GTI re-bodied as a Dodge Hornet and Colt.

      • europeon

        Things Americans say…

        • paulgdeaton

          Anyone who uses “Stratus” and “ahead of their time” in the same sentence needs help…

      • MarketAndChurch

        Oh I wish, Dodge cars was always destined to be what Mazda and Kia are today, exciting, sexy, and sporty offerings with passion and emotion in the design. Even the Stratus, along with Chrysler cars like the 300m and Concord were way ahead of their time, and Chrysler and Dodge might be able to become what Hyundai and Kia are today.

        A modern Hornet would be absolutely exciting, although one of those two names should be used on whatever their next muscle car is.

        • Brian Regan

          You know what? I said Colt but meant Omni. I figure having two exciting compact (Omni GLH) and subcompact (Hornet ala the ‘06 concept) cars would be nice additions to the line up.

      • Wandering_Spirit

        Peugeot makes good cars. Sometimes they fail the personality test but materials and reliability are good. They are just ignored by mainstream upper scale buyers because they do not offer the same status and the bling of a badge everyone wants.

    • Matt

      Alfa, SRT and Maserati have nothing to gain from this partnership because PSA don’t have any sporty RWD platforms.

      • Thetruthísntalwayspopular

        SRT? That’s just a trim level ffs. ALfa could do with a new Guilietta and a new Mito, both of which Peugeot could supply.

        • Matt

          Yeah you’re right about SRT, I just used the OP’s words verbatim. The speculation initially was that the Giulietta was going become RWD, however that seems unlikely now.

        • Matt

          Actually I just found out SRT is a brand in itself, like Abarth.

      • Bart

        PSA does have full LED headlights though 😉
        And, on a serious note: they’re a step ahead in the electrification game.

    • Thetruthísntalwayspopular

      Other than the Challenger Dodge is dead…if not quite as dead as CHrysler.

      • MarketAndChurch

        I would also add the Charger, it’s been selling pretty reasonably for a large car, the only of its size still left in the segment.

  • MarkoS

    Interesting proposal, but I see no real advantage for FCA in the USA at least. Throw in a Japanese brand like Mazda or Suzuki and the plot would thicken.

    • Alduin

      God NO leave Mazda and Suzuki alone and Isuzu.

      • MarkoS

        That would be nice, but fact is, it will be the future or not for most.

  • Hot Twink

    …discussing is an all-share merger of equals…

    “merger of equals”? Where have I heard that before? Oh… that’s right, when Daimler-Benz said that about merging with the Chrysler Group. In reality the Chrysler Group became Daimler’s b*tch.

  • Alduin

    I can’t imagine the nightmarish problems these cars are going to have if Fiat and Peugeot merge. Can you imagine French and Italian drivetrains together how unreliable those cars will be? Yikes.

    • paulgdeaton

      1) Maserati Merak

      2) Citroen SM

      Not really unreliable – and both were very striking and advanced. It could be interesting.

      • mist

        Or Fiat Ducato family of vans, Peugeot Expert family of vans. Amongst the best selling vans in the world.

  • ThatGuy

    This would be a good merger too, even if it was with Renault_Nissan.

    Peugeot has come very far and are very reliable for many year. Their engine reliability has been very good, its been more in terms of creaks in the car and going through light bulbs and electric window motors that there were issues.
    But they have got a good range of cars, plus they would leave Alfa, Jeep and Maserati to do their thing in developing cars and move their technologies across the group. But like with Citroen they allowed them to be their own brand.

    Non issue here, this would be a good deal.

    • Avi Benbenisti

      except EP6 and EB2 engine variants, still total and utter rubbish

      • ThatGuy

        They are bad, but im kinda still like the EP6 motor.
        I still have one, Chain Tensioner is the only main issue. I regularly service the one i do have and only use Castrol Edge 10W/40, im in a warmer climate. But yep i use the Lexus IS250 all the time, the 308 is mostly to work and back and a third car.

  • Vangelis Goulis

    And then there was one!

  • A Merger between those two would be the creation of a Giant… Not sure it’s that good for consummers.

  • Wandering_Spirit

    Good for scale costs. Bad for model differentiation. Besides, i am never too fond of overconsolidation. It kills creativity and competition. And that is never too good. And when platforms and components start being shared for cost saving, design is affected. It’s a dejà vù.

2021 Ford Mustang Mach-E Is A Modern Day Pony Car, For Better Or Worse

All years of hype, Ford has introduced an electric Mustang – in crossover form.

Watch Ford Mustang Mach- E Livestream Presentation At 8:50PM EST (5:50PM PST)

Join us as we live stream the unveiling of Ford’s new Mustang Mach-e electric SUV from Los Angeles.

Holographic Chrome Lamborghini Aventador SVJ Is As Bright As Times Square

This chrome-wrapped Aventador SVJ resides in New York where it will surely draw lots of attention.

African King Takes Delivery Of 19 Rolls-Royces, Reportedly Buys 120 BMWs As Well

Swaziland King Mswati III already had an impressive car collection before expanding it even more with this not-so-small fleet.

2019 LA Auto Show Preview: A-To-Z Guide To All The Debuts (Updated)

The most comprehensive list of all the world and North American premieres at the 2019 LA Auto Show.

Revised 2020 Alfa Giulia And Stelvio Debut In China With Improved Interiors (New Photos)

The 2020 Alfa Romeo Giulia and Stelvio look unchanged on the outside but feature many interior and tech upgrades.

Charging A Tesla Model 3 By Towing It With A Raptor Brings Out Some Interesting Results

Turns out you can actually save fuel by towing a Tesla Model 3 with a very thirsty truck!.

2018 Mazda6 Long-Term Test Concludes With Mostly Positive Feedback

Apart from a couple of visits to the service center, KBB had mostly good things to say about the Mazda6 .

These Are The Best-Braking Cars Ever Tested By Car and Driver

Unsurprisingly, they are all sports cars and supercars, but the rankings are not quite as one might have expected…

Inkas’ Armored Sentry Civilian Will Make Others Think You Belong In A SWAT Or SF Unit

The Sentry Civilian is powered by a 6.7-liter turbodiesel with 330 hp and offers huge levels of protection.