What Fiat Chrysler and PSA Peugeot Citroën Merger Will Mean for U.S. Car Buyers
Now that FCA and PSA confirm they're doing a 50/50 merger, we're more likely to see technology being shared than cars being added to the U.S. market.
By MIKE DUFF
OCT 31, 2019
Car & Driver
- Fiat Chrysler Automobiles (FCA) and France's PSA Group agreed to a 50/50 merger this week.
- FCA's portfolio includes Chrysler, Dodge, Jeep, Ram, Fiat, Alfa Romeo, and Maserati, and PSA Group is the parent company of French brands Peugeot, Citroën, and DS as well as former GM units Opel and Vauxhall.
- This merger is not so much about finding new markets for products as letting FCA share in the more sophisticated technology PSA controls, including electrified drivetrains and advanced front-wheel-drive platforms.
Mergers between large auto companies may excite analysts and business journalists, but our first reaction is more selfish: What's in it for us? Now that it's confirmed Fiat Chrysler and PSA are throwing in together to create what will likely be the world's fourth-biggest automaker—building 8.7 million vehicles a year—we're more interested in the specifics of future model plans. Instead, perhaps inevitably, the evaluation of a deal like this tends to be more about stockholder value, future earnings, and potential for cost-saving synergies than about the product.
And that's a shame. Between them, the two groups control a huge number of brands, several of which we care deeply about. As well as Fiat and the little that remains of Chrysler, FCA has Dodge, Ram, Jeep, Alfa Romeo, and Maserati in its portfolio, plus Abarth and the (dead outside Italy) Lancia. PSA has Peugeot and Citroën plus the upmarket DS brand, as well as Opel and Vauxhall, which were acquired from GM in 2017. That's a huge portfolio with both significant overlap but also geographic anomalies—the most obvious being that apart from the Buick Regal, which is built in Germany, no PSA products are currently sold in the United States.
CONTINUE AT LINK ABOVE