Fiat Chrysler and Peugeot to merge

PSA Group and Fiat Chrysler Automobiles have agreed to merge. The merger will mean that the two companies will create the fourth-largest global automotive OEM by volume and the third-largest in revenue.  

The merger will mean brands including Alfa Romeo, Citroen, Jeep, Opel, Peugeot and Vauxhall will be brought under one umbrella.  

The combined company will have annual unit sales of 8.7 million vehicles, with revenues of nearly €170 billion, recurring operating profit of over €11 billion and an operating profit margin of 6.6%, all on a simple aggregated basis of 2018 results The strong combined balance sheet provides significant financial flexibility and ample headroom both to execute strategic plans and invest in new technologies throughout the cycle. 

Carlos Tavares will be Chief Executive of the company and hold a seat on the board.   

Tavares, Chairman of the Managing Board of Groupe PSA, said: “Our merger is a huge opportunity to take a stronger position in the auto industry as we seek to master the transition to a world of clean, safe and sustainable mobility and to provide our customers with world-class products, technology and services. I have every confidence that with their immense talent and their collaborative mindset, our teams will succeed in delivering maximized performance with vigor and enthusiasm.”

Mike Manley, Chief Executive Officer of FCA, added: “This is a union of two companies with incredible brands and a skilled and dedicated workforce. Both have faced the toughest of times and have emerged as agile, smart, formidable competitors. Our people share a common trait – they see challenges as opportunities to be embraced and the path to making us better at what we do.”