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
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • 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
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automakers
March 31, 2019 03:14 AM

PSA, Fiat Chrysler discuss joint electric cars, report says

Daniele Lepido, Tommaso Ebhardt and Ania Nussbaum
Bloomberg
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Bloomberg

    PSA is in 'continuous discussions' with its industrial partners but is not engaged in "deep" negotiations, Tavares said.

    PSA Group and Fiat Chrysler Automobiles are exploring a partnership that may involve sharing investments on electric cars, according to people familiar with the talks.

    PSA and FCA have been holding preliminary discussions to collaborate on a "super platform" -- the basic underpinning of a car model -- to reduce their investment costs in the highly competitive region, said the people who asked not to be named as the matter is private. Preliminary talks could be announced by the end of the first half, one of the people said.

    PSA CEO Carlos Tavares said earlier this month that his company is ready to seize opportunities for growth, less than a year after integrating the Opel and Vauxhall brands that it purchased from General Motors. FCA CEO Mike Manley said at the same time that he would "clearly look into" a deal that would make the automaker stronger, including an alliance or a merger.

    Any eventual partnership will likely include sharing investments for new electric cars, the people said. Sale of electric vehicles is expected to boom globally to 60 million a year in 2040 from about 2.2 million in 2019, according to BloombergNEF estimates.

    "No single car manufacturer alone can afford the sheer size of investments needed to develop platforms for the kind of smart, hybrid and connected vehicles that will hit the road in coming years," said Carlo Alberto Carnevale Maffe, a professor at Bocconi University in Milan. "Talks between PSA and FCA, as well as the one by BMW and Daimler, are a clear sign that the industry needs to find a new equilibrium of competition on final products and services, leveraging on inevitable cooperation in technology development and supporting infrastructures."

    A PSA spokesman declined to comment, and referred to comments Tavares made to the Wall Street Journal Saturday, where he said the company was not targeting a "specific" partner and isn’t engaged in "deep" negotiations to find a tie-up. "We have continuous discussions with our partners," Tavares told the WSJ in response to a question about potential talks with FCA. “There is no specific target — no specific, deep, ongoing negotiation."

    FCA and PSA extended their cooperation on light-duty vans to include vehicles under PSA's Opel and Vauxhall brands in February.

    Automakers are increasingly joining forces to share investments as the industry is facing a technological disruption driven by electric and self-driving cars. Stricter emission rules imposed by European regulators are also forcing the industry to shift away from traditional combustion engines.

    Automakers are getting squeezed with valuations hovering at recession-like levels, while cash-rich Silicon Valley giants such as Alphabet plot inroads into the industry to access data in future cars.

    With more signs that sales volume has peaked, Ford and Volkswagen are working toward a broad partnership that would include commercial vehicles and autonomous driving, while BMW and Daimler are collaborating on a range of shared- and self-driving efforts.

    FCA Chairman John Elkann shares former CEO Sergio Marchionne's view that auto industry needs to consolidate to end duplication of investments. Marchionne said in his "capital junky confession" speech in 2015 that the auto industry was wasting 2 billion euros ($2.2 billion) every week in product development and tooling costs which could be shared.

    RECOMMENDED FOR YOU
    Renault, Nissan will present alliance redesign on Feb. 6
    Recommended for You
    renault nissan web2.jpg
    Renault, Nissan will present alliance redesign on Feb. 6
    6DEFENDER-MAIN_i.jpg
    Jaguar Land Rover adds third Defender shift to meet high demand
    Fearri Purosangue
    Ferrari expects 'even stronger' 2023 with more new models
    Capgemini Invent Head on automotive takeaways from CES 2023
    Sponsored Content: Capgemini Invent Head on automotive takeaways from CES 2023
    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
    • Advertise with us
    • 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 © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • 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
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us