Merger News

PSA, FCA agree to $47 billion merger, create 4th largest automaker

Chairman of the Managing Board of Groupe PSA Carlos Tavares (left) and FCA CEO Mike Manley (right) share a congratulatory handshake after signing the historic combination agreement

Photo courtesy of Fiat Chrysler Automobiles N.V.

On Halloween, news broke that PSA and FCA had agreed in principle to merge. Now the merger is official with both parties having signed a binding merger agreement in a deal worth approximately $47 billion.

The merger creates the fourth largest global original equipment manufacturer by volume and the third largest by revenue. Using 2018 tallies, the two companies accounted for a combined 8.7 million vehicle sales.

This deal allows flexibility of production and future technologies development that both parties were seeking. PSA had previously made it known that it was looking to expand into the Americas, an area where FCA excels in production and sales. FCA has widely been reported as falling behind other automakers in its development and implementation of battery, autonomous, and safety technology.

Click here to see the brands caught up in the merger.

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.

The release also touted the company's plans to deliver "higher customer satisfaction." The 2018 American Customer Satisfaction Index, which surveys car owners on their overall service and product experience with specific auto brands, found that Ram was FCA's most satisfying brand for customers, with a 14th place ranking. Jeep came in at 18th, and Fiat at 25th, while Dodge and Chrysler were at the bottom placing 27th and 28th, respectively.

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. No announcement has been made as to the role of Mike Manley, who has been leading FCA following CEO Sergio Marchionne's sudden death in July 2018, though FCA confirms that Manley will still have a role in the company.

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Twelth-grader Vincent Piaskowski took top honors in the Stellantis competition.

Photo courtesy of Stellantis
Stellantis, formerly known in the U.S. as Fiat Chrysler Automobiles, has just wrapped its annual Drive for Design contest and has crowned three impressive winners. The contest gives high school students an opportunity to win prizes, meet influential member of Stellantis' vehicle design teams, and spend time at the College for Creative Studies.
  • First Place: Vincent Piaskowski, 12th grade from Michigan
  • Second Place: Rocco Morales, 10th grade from Michigan
  • Third Place: Alex Wang, 12th grade from California

Second place winner Tenth-grader Rocco Morales won second place.Photo courtesy of Stellantis

The winners submissions were impressive, but the prizes they won are pretty cool, too. First place took home a Wacom MobileStudio Pro 16, a Virtual Day of Design that includes a one-on-one portfolio review with Stellantis design leaders Ralph Gilles and Mark Trostle, and a scholarship for a four-week virtual summer program at the College for Creative Studies. Earning a second- or third-place price wasn't so bad, either. Those two got an Apple iPad Pro and Apple Pencil, a visit with Head of Ram Truck and Mopar Design, Mark Trostle, and the same four-week scholarship.

Before they could claim a prize, artists' submissions were scrutinized in four key areas, each evenly weighted in judging. Craftsmanship, design quality, illustration, and originality were all scored to find the winner. Looking at the top three entries, it's clear that the choice before the judges was a tough one.

Third place winner Twelth-grader Alex Wang took home third place.Photo courtesy of Stellantis

The winning submission was a concept called the Jeep Grand Teton. It's accompanied in the sketches by its own reconnaissance drone, and doesn't look all that far-fetched, as far as concept vehicles go. The second-place submission is called the Jeep Crazy Horse. It's quite a bit more "out there," and features a sliding battery unit to improve vehicle balance off road. Third place, while futuristic, looks to be a throwback to the vintage Jeep Forward Control pickups of decades past. Named the Adversary, the concept features solar cells, tent storage, and a unique cabover design.

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Barrett-Jackson traditionally sells hundreds of vehicles per auction.

Photo by Getty Images

Automotive auction house Barrett-Jackson is set to host its first Houston Auction on September 16-18, 2021. The auction house will set up temporary quarters at the NRG Center when it rolls into town for the three-day event.

The Barrett-Jackson Houston Auction will be the first collector car auction the company has ever held in the Lone Star State. It's set to feature a broad range of vehicles including vintage and custom cars, supercars, and late-model vehicles. There will also be authentic automobile up for bid.

"We're incredibly excited to head out to Houston this fall for our first collector car auction in Texas, said Craig Jackson, chairman and CEO of Barrett-Jackson. "Enthusiasts across the region, especially Texans, have a deep passion for collector cars. Only a few years ago, my search for the lost 1967 Ford Shelby EXP 500 prototype dubbed 'Little Red' led me to North Texas, where I found the fabled Mustang. There's an unmistakable car culture in Texas, and we're looking forward to fueling that passion with our inaugural Houston Auction in September."

Like the Mecum Auctions event in April, Barrett-Jackson will have an audience for their auction. Tickets to the event are available online only. Through September 15, tickets are $80 per adult; $60 for students, senior citizens, and military personnel; and $35 for children. On event days, tickets can be had at the rate of $90 for adults; $70 for students/seniors/military; and $45 for children.

Some VIP ticket packages are available. Pricing for those packages is not currently available though interested members of the public may currently visit the Barrett-Jackson home page and made a deposit on their VIP experience.

Registering as a bidder is also available online. On-site bidder amenities include one bidder badge (adult admission for each day of the auction), guest credential (adult admission for each day of the auction), a preferred parking pass (if available), access to bidder seating and the Bidder Bar, Barrett-Jackson event catalog. Tier 1 bidders also receive a bidder badge with drink tokens and one guest credential with drink tokens.e

"They say everything's bigger in Texas, and that's exactly what you can expect from our inaugural Houston Auction," said Steve Davis, president of Barrett-Jackson. "With the sprawling NRG Park as our backdrop, our docket will be as wide and diverse as the state itself. From the custom off-road trucks and SUVs that have made Texas the Truck Capitol of the World to modern supercars that race their way around Circuit of the Americas, we'll have a car for every type of collector."

Owners wishing to consign a vehicle for sale still have the opportunity to do so. To start that journey, visit www.Barrett-Jackson.com.

Information regarding the event's traditional opening night gala has not yet been released. Barrett-Jackson recently cancelled their Scottsdale gala out of concern regarding the spread of COVID-19.

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