FCA, PSA to sign merger agreement in coming weeks

The marriage between Fiat Chrysler Automobiles (FCA) and France’s PSA Group, the maker of Peugeot and Citroen cars, will soon be finalised. According to Reuters, both carmakers have told employees that they would sign a binding merger agreement in the coming weeks.

According to the newswire, which obtained two separate communications through internal channels, the companies told their employees that more than 50 people were involved in the process, which would create the world’s fourth-largest carmaker.

According to the report, nine working groups were established, led by FCA group treasurer and global head of business development David Ostermann, and by PSA executive VP of program and strategy Olivier Bourges.

It was previously reported that all five PSA and nine FCA brands will be maintained after the US$50 billion (RM207.5 billion) 50:50 share merger. PSA CEO Carlos Tavares said his company and FCA complement each other well in terms of technologies, brands and geographical spread. “There’s no doubt it’s a very good deal for both parties. It’s a win-win,” he said.

The merged group will have a combined workforce of around 400,000, and both the French and Italian governments as well as workers’ unions are analysing the implications of the deal. On his part, Tavares said that the companies can save billions of euros annually without closing factories, but he would not rule out job cuts, only saying, “that’s the car industry, it’s not about PSA.”

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