Fiat Chrysler And PSA Groupe Are Merging
The Italian-American automaker Fiat-Chrysler is now merging with French automaker, PSA Groupe which owns Peugeot, Citroën, DS, Opel, and Vauxhall. The merge will be a 50-50 share swap and result in the world’s fourth-largest automaker.
While Fiat Chrysler has a strong footprint in North America, Peugeot is the No. 2 automaker in Europe. The merger is expected to offer savings of $4 billion without closing any plants for either automaker.
FCA’s strongest brands are Jeep SUVs and Ram trucks with luxury brands, Alfa Romeo and Maserati focusing on hybrid engines. While PSA Peugeot makes mostly small, city-friendly cars, family sedans, and SUVs.
The new company would be worth $50 billion and produce 8.7 million cars a year. Both companies are expected to finalize the deal over the next few weeks.