Merger News

FCA and PSA Group approve merger to become world's 4th-largest automaker

The boards of FCA and PSA Group have approved a merger between the two companies.

Photo courtesy of Fiat Chrysler Automobiles N.V.

Earlier this year, Fiat Chrysler Automobiles N.V. nearly merged with Renault. Now, the boards of FCA and PSA Group have agreed to join forces using a 50-50 share swap.

Combined, the company will be worth $50 billion and be located in the Netherlands, where FCA currently has its head office. It will have stock listings in Paris, Milan, and New York. The combined company will maintain a significant presence in their current operating head-office locations in France, Italy and the US.

The new company's board will consist of 11 members. PSA's Carlos Tavares will be the company's CEO and a member of the board while FCA's John Elkann will be chairman of the board.

A joint statement from the companies cited a, "rapidly changing environment, with new challenges in connected, electrified, shared and autonomous mobility," as the reason for the merger and expressed how that, "the combined entity would leverage its strong global R&D footprint and ecosystem to foster innovation and meet these challenges with speed and capital efficiency."

Last year, the company had combined sales of 8.4 million vehicles. PSA Group does not currently have a footprint in the U.S. though they have expressed wanting to do so over the past few years, even going so far as to establish an office in Atlanta, Georgia. Much of PSA Group's sales strength is in Europe while FCA is strongest in North and South America.

The company will be able to utilize manufacturing strategies that will have $4.124 billion in estimated annual run-rate synergies. The automakers say this will come from a shared allocation of resources for large-scale investments in vehicle platforms, powertrains, technology, and purchasing capability. Eighty percent of these synergy are expected to be acheived after four years at a one-time cost of $3.118 billion.

No plants will be closed.

FCA brings the Fiat, Dodge, Ram, Chrysler, Jeep, Alfa Romeo, and Maserati vehicle brands to the table. PSA Group owns Peugeot, Citroën, DS, Opel, and Vauxhall. Both companies have a number of investments in third-party mobility and technology companies.

There is currently no public proposal of a forthcoming name change as the automakers form the joint company.

Trending News

 
 

American muscle cars

Ford Mustang continues sales dominance

2021 Ford Mustang Mach 1
Photo courtesy of Ford Motor Company

Ford has good reason to be proud of the Mustang. Now almost 60 years on from its introduction, Ford continues innovating with new versions and performance upgrades. It's all good news for buyers, as it's hard to find a "bad" Mustang in Ford's current catalog. The efforts have paid off, too, as the automaker just announced that the Mustang outsold its competition for the seventh year in a row.

2020 Ford Mustang Shelby GT500 Photo courtesy of Ford Motor Company

The Mustang continued outselling the Chevrolet Camaro and Dodge Challenger, and did so without help from the Shelby GT350, which was discontinued. The Mustang Mach 1, with its 5.0-liter V8, led the charge, but Ford notes the performance of its most powerful Mustang, the Shelby GT500.

Ford says Americans are the most prolific Mustang buyers, representing 76 percent of the car's worldwide sales. Mustang sales in New Zealand grew 54 percent and Brazil saw sales climb 37.3 percent, so the car is a global effort for Ford. The automaker notes that retail orders, where a customer places an order for a car instead of shopping for one off the lot, almost doubled last year.

1969 Ford Mustang Mach 1 Photo courtesy of Ted Fontenot

The 2022 Mustang may mark the last year of the car's current generation. Spy photographers have caught next-generation cars testing in the wild, and the current-gen cars have been on sale since 2015. Ford also expanded the Mustang name in 2021 with the addition of the new electric Mustang Mach-E, which was met with huge demand and several awards from around the auto industry.

Trending News

 
 

The 3.0-liter twin-turbo engine delivers big power numbers.

Stellantis

The old saying that there's "no replacement for displacement" isn't quite as accurate as it once was. Turbochargers and the latest engine designs have made it possible to extract major power from smaller, more efficient power plants. Stellantis' latest announcement proves this point, as its new Hurricane inline-six-cylinder engine will generate big power numbers from a relatively modest 3.0 liters and two turbos.

Stellantis says two variants will be available. The standard output version produces more than 400 horsepower and 450 pound-feet of torque, while a high output variant delivers more than 500 horsepower and 475 pound-feet of torque. The twin-turbo inline-six delivers that power with up to 15 percent better fuel efficiency.

Stellantis Hurricane Inline-SixIt's not yet clear which vehicles will get the engine.Stellantis

The new engine comes as Stellantis works to position itself for an electrified future. The automaker stated a goal of 50 percent a 50 percent battery electric vehicle mix by 2030, but notes that gas engines will still play a major role in its vehicle line for years to come. "The Hurricane twin-turbo is a no-compromise engine that delivers better fuel economy and an important reduction in greenhouse gases without asking our customers to give up performance," said Micky Bly, Stellantis head of propulsion systems.

At this point, it's unclear which vehicles will get the new engine, but Stellantis' brands are packed with opportunities. Dodge, whose Hellcat-powered muscle cars could be a good candidate, and then there's Jeep, with a line of off-road-ready SUVs that could greatly benefit from such an engine. The Hurricane's projected high output of 500 horsepower puts it behind the Hellcat engines power output, but it's still strong enough to make a seriously quick vehicle.

Trending News