Merger News
It may take 12-14 months before the FCA-PSA merger is finalized
Negotiations are underway as part of the closing elements of the FCA-PSA Group merger.
In an interview with Reuters, Michael Manley, CEO of Fiat Chrysler Automobiles said merger talks are progressing well with PSA Group but that it may take 12-14 months before a deal is complete.
Late last year, the two companies agreed to a $47 billion merger to create the fourth largest automaker in the world by volume and the third largest by revenue. Using 2018 tallies, the two companies accounted for a combined 8.7 million vehicle sales.
The comments reiterate the timeline Manley had publicized after the deal was signed in December, signaling an early 2021 merger completion date.
In December, a news release issued by the companies indicated that there are no plans to close any factories and that the company expects to be cash flow positive from the get-go.
Americans should expect at least 13 vehicle brands to be caught up in the FCA-PSA merger but persons worried about the fate of Chrysler and Dodge should be comforted by side comments made by PSA personnel this week at indicated that the merger will not include the loss of the historic nameplates, at least right away.
Current negotiation points in the merger include how the variety of the companies' platforms will work on vehicles made by the combined automakers, and where shared resources in regards to underpinnings, powertrains, etc. can benefit the company as a whole.
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