Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • nvidia_0.jpg
      Volvo, Nvidia accelerate race for data-processing power
      Porsche-backed EV maker Rimac warms to SPACs
      France could offer cash to scrap cars for electric bikes
      Most European city dwellers support 2030 ban on combustion-car sales, survey finds
    • Tesla criticizes slow approval process for German factory
      Toyota debuts advanced automated driving
      Alfa Romeo Tonale launch delayed after new CEO demands better performance
      tesla camera story.jpg
      Tesla says interior cameras are not activated in China
    • Chip stock-MAIN_0.jpg
      Renesas resumes operations of damaged clean room
      4BIDEN-MAIN_i.jpg
      U.S. Senate readying legislation on semiconductors, Biden says
      Path out of chip shortage: New capacity, new thinking -- and patience
      Britishvolt's 30 gigawatt-hour plant in Blyth, England, is scheduled to start production in 2023.
      EV battery company Britishvolt looks for a SPAC deal
    • view gallery
      8 photos
      Citroen C5 X
      The C5 X has a fastback body style, along with a high waistline and a distinctive kick above the rear wheels.
      Citroen returns to midsize segment with category-blurring C5 X
      Mercedes EQS camouflaged
      Daimler CEO expects solid returns from flagship EV
      Toyota cuts estimated emissions for full-hybrid Yaris Cross SUV
    • Audi's plant in Gyor, Hungary, VW Group's biggest engine factory, built 1.6 million engines in 2020.
      VW brand will phase out combustion engines, CEO says
      The sales rollout of the ID4 is starting in Europe, the U.S. and China
      The UK's conflicting stance on EVs
      Valeo joins Bosch, GM, others in pledge for carbon neutrality
      GMEVBarra-MAIN_i.jpg
      GM aims to stop selling gasoline vehicles by 2035 in carbon neutrality pledge
    • Spain offers electric car subsidies
      Stellantis brands dominated van sales in EU in 2020, figures show
      VW cars Germany
      German sales rise 36% in March but fall 6% in the first quarter
      Audi car sales
      German auto industry gets spring boost as orders rise
    • Volvo CFO Bjorn Annwall
      Volvo promotes Europe boss Annwall to finance chief
      andersson.jpg
      Bo Andersson steps down from Yazaki
      John-Krafcik-bloomberg.jpg
      Krafcik leaves Waymo after 5 years as CEO
       Daimler's new chairman, Bernd Pischetsrieder, with Manfred Bischoff
      Daimler's shareholders approve former BMW, VW CEO Pischetsrieder as chairman
    • Geneva Auto Show
    • Frankfurt Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Mobility
    • Segment Analysis
    • Latest Launches
    • Supplier Spotlight
    • Europe By The Numbers
    • Path out of chip shortage: New capacity, new thinking -- and patience
      Apple, Nio, other auto newcomers get creative to avoid Tesla's 'production hell'
      How Amazon, Google are transforming the auto industry
      EV-only future looks closer than ever in Europe
    • Ford of Europe plans more changes to reposition business for EV-focused future
      Renault CEO bets on 'winning horses' for turnaround
      Nvidia CEO says software will soon define the car, drive profit
      Tavares: Keeping PSA, FCA merger on track an 'incredible' achievement
    • Most European city dwellers support 2030 ban on combustion-car sales, survey finds
      MagnaSign.jpg
      Magna will develop and build EV with Israeli startup
      Volvo-S90-plug-in hybrid.jpg
      Once 'green' plug-in hybrid cars suddenly look like dinosaurs in Europe
      Spain offers electric car subsidies
    • France could offer cash to scrap cars for electric bikes
      Toyota debuts advanced automated driving
      Argo AI-MAIN.jpg
      Self-driving startup Argo AI, backed by VW and Ford, may go public to boost funding, report says
      John-Krafcik-bloomberg.jpg
      Krafcik leaves Waymo after 5 years as CEO
    • Smart EQ ForTwo electric being charged
      Minicars race toward electric future
      EVs make huge gains helped by incentives, tougher CO2 rules
      EVs, surging SUVs to hit Europe's biggest segment
      Wagons hold market share, but costly EV shift looms
    • Mercedes EQS camouflaged
      Daimler CEO expects solid returns from flagship EV
      Alfa Romeo Tonale launch delayed after new CEO demands better performance
      VW adds sporty crossover with Taigo
      17266_Kia_EV6_GT-Line_0.jpg
      Kia adds powerful GT to EV6 lineup
    • Vitesco's optimism about EV shift grows as spinoff nears completion
      How GKN is transforming to gain from e-powertrain shift
      Marelli CEO expects e-powertrains to provide long-term boost
      Veoneer boss expects to reach key milestone this quarter
    • Europe sales by model, February: Tesla, Ferrari, Lotus, Aston Martin rise despite down market
      Nissan Qashqai
      Turkey sales, February: Nissan, Fiat, Skoda report strong gains
      Top 10 sellers by market, 2 months: Skoda Octavia makes the cut in 18 out of 27 countries
      Russia sales, February: Market bounces back with small increase
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
    • Volvo Google infotainment
      Volvo expands upon positive Google experience
      Volvo front grille
      Volvo targets top talent in U.S., China with generous parental leave policy
      Great Wall ORA R1 at 2019 Shanghai auto show
      ZF exec on why China's auto shows will survive
      The sales rollout of the ID4 is starting in Europe, the U.S. and China
      The UK's conflicting stance on EVs
    • Understanding the impact of design on marketing, brand and user experience
      Ex-Aston Martin CEO Palmer calls on UK to intensify battery commitment
      Why Apple must target the $230B luxury car market
      Apple car: Who will build it? Magna Steyr possible candidate
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
    • mercedes_eqs_int_6.jpg
      view gallery
      12 photos
      Mercedes EQS Interior
      Green Peugeot 308 1.jpg
      view gallery
      17 photos
      Peugeot 308
       bmw_i4_6.jpg
      view gallery
      6 photos
      BMW i4
       aygo_x_6.jpg
      view gallery
      15 photos
      Toyota Aygo X Prologue
    • koenigsegg-gemera-front-quarter-passenger-01.jpg
      view gallery
      14 photos
      Koenigsegg Gemera
      view gallery
      21 photos
      Fiat New 500
      view gallery
      11 photos
      Aston Martin V12 Speedster
      view gallery
      13 photos
      Audi A3 Sportback 2020
    • At the Beijing show, sales rebound and EV boom mix with murky outlook
      3BEIJING-MAIN_i.jpg
      Beijing show to highlight competition for local EV makers
      Beijing auto show delayed due to coronavirus
      Maserati will unveil Ghibli hybrid at Beijing show
    • view gallery
      11 photos
      Mercedes-Benz Vision EQS
      view gallery
      11 photos
      Renault Captur
      view gallery
      5 photos
      Mercedes-Benz AMG GLB 53
      view gallery
      10 photos
      Mercedes-AMG GLE 53 Coupe
    • view gallery
      8 photos
      VinFast Lux SA2.0 SUV
      view gallery
      8 photos
      VinFast Lux A2.0 sedan
      view gallery
      7 photos
      Toyota Corolla station wagon
      view gallery
      9 photos
      Seat Tarraco
    • view gallery
      4 photos
      Nio ET Preview
      view gallery
      7 photos
      Infiniti Qs Inspiration concept
      view gallery
      5 photos
      BMW 3-series LWB
      view gallery
      9 photos
      Mini Clubman
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress Conversations
    • ANE Shift
    • ANE Rising Stars
    • ANE Eurostars
    • ANE Leading Women
    • Watch Again
      • July 9: EU green deal in the COVID-19 new normal
      • July 16: Assisted or Autonomous Driving
      • July 23: Challenges in Electrification
      • July 30: The Road Ahead for Europe
    • Meet the 2020 winners
    • Watch the 2020 Rising Stars awards again
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Cloud: A springboard for future competitiveness
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automakers
October 30, 2019 07:06 AM

FCA-PSA merger would revitalize Fiat in Europe

Andrea Malan
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    MILAN -- Fiat Chrysler Automobiles would gain much-needed scale and technology by getting access to PSA Group’s platforms for passenger cars and crossovers if a merger of the two automakers goes head.

    FCA sells more vehicles than PSA but it has been seeking a partner for several years, dating back to late CEO Sergio Marchionne's failed courtship of General Motors.

    FCA's global deliveries were 4.8 million last year, while PSA sold 3.9 million vehicles.  FCA's main strength is in North America, where it sold more than 2.5 million units in 2018. PSA is heavily dependent on Europe where it sells 80 percent of its vehicles.

    FCA's platform and powertrain sharing across its three main regions – North America, Europe and Latin America – is marginal but in Europe FCA would benefit from PSA's modern architectures for small and compact cars.

    The Fiat brand has been starved of product and its European market share has fallen to 4.3 percent with most of its sales in its Italian home market.

    The brand currently sells only the 500 and Panda minicars, the 500L small minivan, 500X small crossover and the Tipo compact car. The Punto, which competed for market leadership in the small-car segment until a decade ago, was discontinued in 2018. It could be resurrected on a PSA platform.

    Europe product

    Bernstein analyst Max Warburton said Europe would be a key focus for a merged FCA and PSA.

    PSA's r&d resources and cutting-edge lightweight platforms "could revitalize Fiat’s tired product range," he said in a note to investors.  "Sub-scale" product lines, powertrains and future EV investments could be combined, he said.

    Products and brands might be rationalized and distribution networks combined, Warburton said. "The task would be huge, the politics messy and lots would probably go wrong on the way," he said.

    Fiat's Italian operations have overcapacity. Its Mirafiori assembly complex in its home city of Turin has run below 50 percent capacity, with thousands of workers on temporary layoffs.

    Overall, Fiat has 58,000 workers in Italy, where the government has long resisted mass lay-offs by large employer

    On Wednesday the Italian trade union UILM said any tie-up between FCA and PSA must be a "merger of equals" that leads to no job losses in Italy. The FIOM union said a deal should guarantee full utilization of the Italian factories.

    New technologies

    Joining forces with PSA would help FCA to catch up in new technologies such as electrification and autonomy where it has fallen behind rivals and is under growing pressure to increase investments.

    The company disclosed earlier this month that it faces a $79 million fine for falling short of U.S. fuel efficiency standards. It has agreed to pay U.S. electric car maker Tesla for credits to help it comply with European emissions standards until 2022.

    FCA CEO Mike Manley said earlier this year FCA aims to recover 60 percent of the additional vehicle electrification costs through pricing; sharing those costs with a partner will help reduce the bill.

    In Europe FCA could help PSA to build up sales of high-margin, upscale cars. PSA's upmarket DS brand, originally a subbrand of Citroen, has failed to make an impact on European buyers.

    FCA could offer PSA its Giorgio rear-wheel-drive/all-wheel-drive architecture created for the Alfa Romeo Giulia midsize sedan and Stelvio midsize SUV. Manley said this year the Giorgio architecture would also become the base for a future range of Maserati models.

    FCA's Jeep SUV brand and Ram pickups would boost Peugeot's plans to relaunch in the U.S. PSA CEO Carlos Tavares said earlier this year that Peugeot would be returning to the U.S., which it exited in 1991, in 2026.

    Reuters and Bloomberg contributed to this story

    RECOMMENDED FOR YOU
    Volvo, Nvidia accelerate race for data-processing power
    Recommended for You
    Volvo, Nvidia accelerate race for data-processing power
    Volvo, Nvidia accelerate race for data-processing power
    Porsche-backed EV maker Rimac warms to SPACs
    Porsche-backed EV maker Rimac warms to SPACs
    France could offer cash to scrap cars for electric bikes
    France could offer cash to scrap cars for electric bikes
    Cloud: A springboard for future competitiveness
    Sponsored Content: Cloud: A springboard for future competitiveness
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • 2020 Media Kit
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Geneva Auto Show
        • Frankfurt Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Mobility
      • Segment Analysis
      • Latest Launches
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress Conversations
        • Watch Again
          • July 9: EU green deal in the COVID-19 new normal
          • July 16: Assisted or Autonomous Driving
          • July 23: Challenges in Electrification
          • July 30: The Road Ahead for Europe
      • ANE Shift
      • ANE Rising Stars
        • Meet the 2020 winners
        • Watch the 2020 Rising Stars awards again
      • ANE Eurostars
      • ANE Leading Women
    • More
      • Publishing Partners
        • Capgemini: Cloud: A springboard for future competitiveness
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us