Fiat Chrysler and Peugeot merge to create world’s fourth-largest vehicle manufacturer
Merger is said to create the world's fourth-largest car manufacturer by sales
Fiat Chrysler Automobiles (FCA) and Peugeot-maker PSA Group have agreed to merge, creating the world’s fourth-largest vehicle manufacturer by sales, with a combined worth of around $50bn (£38.6bn, €44.8bn).
PSA and FCA said their boards have “opened a path” to the creation of a new group with global scale and resources. Each will have 50 per cent ownership in the new entity.
In creating sales of 8.7 million vehicles annually, the combined company would realise among the highest margins in the markets where it would operate, based on FCA’s strength in North America and Latin America and PSA’s in Europe.
The merger aims to bring together the companies’ capabilities in the technologies shaping an era of sustainable mobility, including electrified powertrain, autonomous driving and digital connectivity.
The deal would create a company with revenues of $190bn (£146bn, €170 bn), and recurring operating profit of more than $12.28bn, putting it ahead of General Motors and Hyundai-Kia in sales.
The board will be composed of 11 members. Five will be nominated by FCA and six by PSA including the senior independent director and vice chairman.
Carlos Tavares, the current chief executive officer and chairman of PSA, will be the new chief executive officer of the combined company for an initial term of five years. He will also be a member of the board.
The transaction is said to be affected by way of a merger under a Dutch parent company.