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.

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Nuts & Bolts

 
 

The 2021 Ram 1500 Limited Longhorn 10th Anniversary Edition is a upmarket truck for a discerning customer.

Photo courtesy of FCA US LLC

Happy anniversary, Ram. The 2021 Ram 1500 Limited Longhorn 10th Anniversary Edition replaces the Laramie Longhorn for the 2021 model year providing a more luxurious truck option for well-heeled buyers.

"The new 2021 Ram 1500 Limited Longhorn 10th Anniversary Edition is a tip of the Stetson to 10 years as a stand-alone brand building the best trucks, featuring the ultimate combination of capability, luxury and refinement," said Mike Koval Jr., Head of Ram Brand. "Truck buyers in this rarified air expect to see and feel the highest quality materials, and the Limited Longhorn 10th Anniversary Edition is another example of how we deliver the most luxurious pickups in the industry."

2021 Ram 1500 Limited Longhorn 10th Anniversary Edition

Photo courtesy of FCA US LLC

Ram says that the Limited Longhorn 10th Anniversary Edition is "layered with premium materials" and takes design cues from the American Southwest - antique pocket watches, hand-tooled leather cowboy boots, saddles. It combines wood, leather, and metal elements on the interior in ways traditional luxury vehicles do.

At the front of the model is a chrome-slat grille and header, adaptive LED headlights, and chrome bumper, tow hooks, and side steps (power side steps are available). A Limited Longhorn 10th Anniversary Edition tailgate badge, multi-function tailgate and new 20-inch wheels are offered with a variety of finishes.

The model's cabin is appointed with a leather-wrapped dashboard, suede door bolsters, and leather bolster seat inserts with Laser Filagree detail. The Mountain Brown interior color scheme includes hammered metal aluminum liquid graphite accents. There's a 10th Anniversary Edition graphic on the instrument cluster and Gloss Black shifter center cap with silver stripe, metal pedal kit, and brushed-zinc antique badge.

The 2021 Ram 1500 Limited Longhorn 10th Anniversary Edition is available with Ram's 5.7-liter HEMI V8 or 3.0-liter EcoDiesel engine. It comes standard with a Crew Cab body configuration with the buyer's choice of a 5-ft.-7-in. or 6-ft.-4-in. bed length.

Ram 1500 Limited Longhorn 10th Anniversary Edition's MSRP starts at $56,870, plus a $1,695 destination fee. It is on sale now.

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Dodge is celebrating its high-ranking J.D. Power survey results with a new commercial.

Photo courtesy of FCA US LLC

There were so many classic lines. Chief among them is, "If you ain't first, you're last." Dodge is showcasing its historic top spot inn J.D. Power's Initial Quality Study with a new "Talladega Nights: The Ballad of Ricky Bobby"-inspired commercial. The brand was also ranked first in the J.D. Power Automotive Performance, Execution and Layout Study.

The ad features actor Gary Cole as a younger Reese Bobby on a chase after his 10-year-old son Ricky Bobby. The 60-second spot is named "Family Motto" and set to the music of AC/DC's "Shot in the Dark", which is the first music released by the band in six years.

2020 Dodge commercial Talledega Nights Actor Gary Cole reprised his role for the commercial.Photo courtesy of FCA US LLC

"In our 60-second film, we needed to stay 100 percent true to the spirit of the original film, while simultaneously communicating the Dodge brand's record of 'firsts' as ranked by our owners," said Olivier Francois, Chief Marketing Officer. "Maintaining brand authenticity extended beyond Sony Pictures, including our music alliance with Columbia Records and AC/DC, in addition to Gary Cole reprising his role as Reese Bobby, and having the original movie's cinematographer, Oliver Wood, involved with this project. Together, we were able to accomplish this epic creative endeavor celebrating the Dodge brand's first-place wins, which could almost be envisioned as a deleted scene from the original movie."

Here's how the spot unfolds according to Dodge:

The spot opens circa 1981 in Talladega County with Reese Bobby, in a new 2021 Dodge Durango SRT Hellcat, on a walkie talkie imploring his young son Ricky Bobby, who appears to be driving a 2021 Dodge Charger SRT Hellcat Redeye and who yells, 'I wanna go fast,' to pull the vehicle over. During the chase, Ricky Bobby calls out to his best friend Cal Naughton Jr., who appears to pull up next to Ricky in a 2020 Dodge Challenger SRT Super Stock and who proudly proclaims, 'I had Mountain Dew for breakfast,' to help him outrun his father by using the infamous Shake 'n Bake maneuver (with a twist!), leaving his father proud and asking his son to remember the family motto, 'if you ain't first, you're last.'

Family Motto | Dodge www.youtube.com

"Dodge is honored to be the first domestic brand to rank No. 1 in not only the J.D. Power Initial Quality Study, but also the J.D. Power Consumer APEAL Study (mass market) in the same year," said Tim Kuniskis, Global Head of Alfa Romeo and Head of Passenger Cars – Dodge, SRT, Chrysler and FIAT, FCA – North America. "And Dodge is launching three 700-plus-horsepower muscle cars this year with the new Challenger SRT Super Stock, Durango SRT Hellcat and Charger SRT Hellcat Redeye, proving that we firmly believe our new 'Family Motto,' 'if you ain't first, you're last.'"

The spot is related to a larger Dodge marketing campaign. The Dodge Power Dollars 2020 incentive program, $10 cash allowance per horsepower on 2020 Dodge Challenger, Charger, and Durango models.

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