PSA/FCA merger in the works…

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Just when I thought the FCA/Renault idea was weird.
Now this.

I really cannot see the advantage of this for anyone. Except of course, big savings in R&D money.
But that goes for any type of merger.

All these car companies actually pretty much compete in the same market. But again, that’s what I thought of Peugeot and Opel. And now Opel is making money for the 1st time in decades.
But for how long? They fit in the exact same price range as Peugeot, therefore competing with it.
One good thing for Peugeot would be to get instant access to US dealers to sell their products.
But what is in it for FCA?
What do they get out of Peugeot, Citroen or Opel?

Peugeot would get access to Jeep,  FCA’s expensive brand Maserati and RAM trucks.

I guess, saving money is enough? Instead of looking for a partner that could actually complete your portfolio?
To me, it would make more sense for Peugeot to merge with Jaguar/Land Rover.

If the whole thing means we will see Peugeot and Citroen cars over here soon, why not…

What do you think?
Is this a good thing?
Could Chrysler benefit from Peugeot?

Conversation 17 comments

  1. Ram and Jeep are what’s left of Chrysler, once the nostalgia of the muscle car era ends so will the Dodge brand. PSA needs has global mainstream brand equity, FCA has Ram, Jeep, Alfa & Maserati to complement. Alone FCA does not survive, with PSA some of it does.

  2. The 508 platform can be used for let's say a new 300 C and the French already are selling electric cars. This tech can be used in the new Chrysler Portal that is supposed to be release in the near future.

  3. Or just try selling it as the 508, no need to handicap it with a brand name that has been synonymous with rental cars for the past decade! The Chrysler Portal will never see the market. The Chrysler brand name will never attract the electric car buyer…history of poor quality has killed their sales in the past 10 years on traditional ICE product, doubt consumers will believe they can build an electric car that is any better. Too many other choices in the global market that are closer to market with viable products that don't carry negativity.

  4. Here is a Chrysler concept that pays tribute to the 2CV from 1997.
    I love the quirky old Citroen designs, and so was jazzed by this concept when it was introduced.

    There has been a lot of talk regarding bringing Peugeot and Citroen back to the states, and of Citroen having some interesting cars in the pipeline. Peugeots and Citroens have become more mainstream and reliable in recent years, so I hope this will mean an improvement for Fiat/Chrysler.

    Let's hear it for a DS21 Imperial, and a 2CV Hellcat!!

  5. Vince – I think you're not seeing the inevitable.

    The merger will ELIMINATE brands and models so that they will not be competing against one another.

    That's the way most mergers end up. And this one won't be different.

  6. FCA can leverage the 208/Corsa platform for new B-segment FIATs (Punto), the 308/C4 platform for a new Bravo if needed, the 3008 platform for a FIAT SUV, a compact Chrysler/Dodge SUV. PSA can leverage the upcoming FIAT 500/Panda for new Peugeot 108/C1 versions now that Toyota is out, and the Giorgio platform for bigger Peugeot SUVs especially for the american market. I see a lot of positives. and of course the commercial vehicles. and who knows what they could do leveraging Maserati and Jeep further…

  7. FCA will benefit from the electric and PHEV technology from PSA, much more advanced than FCA, avoiding paying new royalties to Tesla for CO2 emissions savings… I guess PSA is also more advanced in small economy engines, needed for other parts of the world (I know US still likes big engines…). Also the EMP platform would allow developping compact SUVs for FCA, which are currently missing (size between Compass and Cherokee)…

  8. I think it means more life for Chrysler/Dodge in the form of car platforms/engines without losing money to do it.

  9. What a shit show… Chrysler, Dodge, Maserati brands will be eliminated or sold eventually. The product portfolio between the two overlaps a lot. TATA and Peugeot made more sense. This is just the beginning of some more consolidation and liquidation of some brands will begin soon. Survival of the fittest mode now in the auto industry.

  10. “Completing a portfolio” is something of interest only to internet bloggers, not businessmen. What’s driving this is that Peugeot and FCA have comparable market values, facilitating a “merger of equals,” and more importantly, extraordinary profit margins. FCA’s Q3 numbers today showed a 10% return on operations, which is ordinarily luxury car territory. Peugeot’s profits under current management are right there as well. Put them together with a projected $4 billion in savings and you have a formidable profit machine to take on VW and Toyota. And that’s how you win in the global auto biz.

    Worrying about which grill to put on which CUV comes a distant second.

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