With Renault not. And with PSA? Maybe. Because unlike half the state group Renault can’t compete in the case of Peugeot, the French government. And Fiat-Chrysler desperately needs a Partner.
The Official silence of iron. Nevertheless, it is leaked that the Italian-American car maker is in France, on Bridal show: Fiat-Chrysler advertises the PSA group with the brands of Peugeot, Citroen, DS, Vauxhall and Opel. In the stock market, the concentration would be around 50 billion dollars (45 billion euros) in value. Possible merger via a share swap, would be the “Wall Street Journal” which first reported about the planned partnership reports.
On Wall Street, shares of Fiat Chrysler rose to more than seven percent. The group, headquartered in Amsterdam(!) had already been brought under the previous CEO Sergio Marchionne as a fusion partner into the conversation, because a consolidation of the industry is inevitable. In 2015, it was not possible to Marchionne, to heat General Motors for a merger. With the Opel and Peugeot parent PSA Fiat Chrysler had discussed earlier in the year, a shoulder-to-shoulder. The two groups have for decades been partners in the commercial vehicle business.
Serious upsets between Rome and Paris
But then, the Italo-Americans, switched suddenly on the French PSA rival Renault, and presented a 30-billion Euro offer. The company had become the world’s third-largest car manufacturer and with more than 8.5 million vehicles in the year, the market leader, Volkswagen, and Toyota can challenge. But the project failed after a short time, because the bidder from his point of view to a strong interference fit by the French government, which holds 15 percent of Renault. The bust grew in the meantime into a veritable political noise between the governments in Rome and Paris.
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FCA-Renault: wedding cancelled
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FCA-Renault: wedding cancelled
Fiat Chrysler left open however, all of the doors. The immense costs for the development of emission-free vehicles and for the much more expensive Autonomous Driving is no longer able to self-respond to the major auto companies alone.
Return to North America
At the Frankfurt auto show IAA in September, the Peugeot boss Carlos Tavares had rejected the idea of a merger with the competitor as it is not necessary. But this merger would allow the French to return to the US car market. The PSA group reported last year a turnover of around 74 billion euros, and Fiat Chrysler has made a turnover of 110 billion.
In the discussion of a merger is the Same, which is from different sources. PSA boss Tavares could run the new company. John Elkann, the head of the Board of Directors of Fiat Chrysler could perform the same function in the new group. But still, the conversations are completely open. And there is no guarantee that they will lead to an agreement. The stock market is celebrating anyway.
rb/se (afp, dpa, rtr)