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Home Uncategorised

INDUSTRY NEWS: Merger creates new superpower

Justin Murray by Justin Murray
5 November 2019
in Uncategorised
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There’s a new major player in the automotive world – an alliance between Fiat Chrysler Automobiles and the French PSA Group.

The merger between the Italian-American firm and PSA Group, which owns Peugeot, Citroen and Opel creates the fourth largest automotive company; at least by 2018 sales. It brings together the French-owned brands alongside Alfa Romeo, Maserati, Abarth, Lancia, Ram, Dodge, Jeep as well as Fiat and Chrysler.

The deal was sealed at the start of November, with Peugeot CEO Carlos Tavares set to lead the united operation with FCA Chairman John Elkann retaining his role. Elkann is the grandson of Gianni Agnelli, the Italian industrialist who controlled Fiat and took over Ferrari during his illustrious career.

It’s still early days but the merger is likely to lead to major changes for all of the brands involved. Tavares is known to be a believer in electrification and with FCA dragging its feet in that department it could help kickstart a range of battery-powered Alfa Romeos, Maseratis and Fiats.

The deal could also have implications for the future of the current Holden Commodore. It’s built by Opel (it was developed when Opel was owned by General Motors, Holden’s parent company) but it’s unclear what the French firm has plans for the family sedan long-term.

Stay tuned to torquecafe.com because we’ll bring you all of the developments as they happen.

Justin Murray

Justin Murray

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