PSA Group CEO Carlos Tavares has said that both his company and Fiat Chrysler Automobiles are heading into their merger to create Stellantis in very good financial shape.
That is largely true, based on 2020 results, but one of the reasons for any merger is to address weaknesses. PSA and FCA have areas that need support.
They include:
- Poor performance in China, the world’s largest auto market
- Excess capacity in Fiat's European factories
- Fiat's struggle to comply with increasing tough European emissions rules
- PSA's over-reliance on Europe for profits
- Fiat's brand's years of underinvestment
- Reviving Maserati and Alfa Romeo