Home Car News Fiat Chrysler combines with PSA and creates fourth-largest automaker

Fiat Chrysler combines with PSA and creates fourth-largest automaker

- Advertisement -

The new technologies are very costly. And the global demand of Fiat Chrysler Automobiles ( FCA) and Peugeot (PSA) has slowed. To solve this issue, they seek to increase their scale. And for this, they came out with the plan to merge in 50-50 share. This shows them on the position of fourth largest automakers.

Aim of the venture

The joint venture of FCA and PSA aims at reaching the deal to create $50 billion groups listing in the Paris, Milan and New York. PSA’s Carlos Tavares heads the joint venture of PSA and FCA as chief executive and FCA’s John Elkann as chairman. Five months ago, we saw FCA abandoning its deal with Renault. This got a problem for them as they faced a downturn in their market and hefty investments coming up through electric and self- driving vehicles.

Gains and Losses

- Advertisement -

But now, PSA would help FCA giving it access to the more modern vehicle platforms and new stringent emissions rule. And, the PSA who focuses on Europe, would profit from the FCA’s U.S. business. They could feature brands as Ram and Jeep. But, the expert analysis finds PSA paying 32 per cent of the premium to take control of FCA. And it might be difficult dividing the profits according to market differences.
And thereby, PSA shareholders are assuming more market risk than FCA. But, the same deal is also considered to be a logical and attractive combination for now, in the automobile industry.

Also Read:  Euro NCAP toughens the norms this year.

Savings

The PSA and FCA are going to talk about finance and finalizing the deal in the upcoming weeks. They would aim at 8.7 million i9nn vehicle sales and putting back the Volkswagen, Toyota and Renault-Nissan alliance. They aim to make savings from the group, which includes Fiat, Jeep, Dodge, Chrysler, DS, Opel and many more. This deal may affect other automakers who are facing a drop in demands shortly, which mostly includes Volkswagen, Daimler, Ford and Continental. Le Maire added to their glory that this deal is going them the chance to face both the challenges of autonomous vehicles and electric cars at the same time.

Also Read:  Tata Altroz launched, priced at 5.29 lakhs, booking for 21 thousand

Also, seeing the past results, the deal will be in scrutiny. The combined group will have domicile of Netherlands but have an operating centre in France, Italy and the U.S.

- Advertisement -
Furious Mad
Madhav Kumar is a student at BIT Sindri pursuing Electrical Engineering and has great interest in writing and research. He wants to share his experience with more people and also, learn from them.
2,731,707FansLike
41,445FollowersFollow
14FollowersFollow
228SubscribersSubscribe

Must Read

Renault India Gave Good News Amidst Corona Crisis, Employees Will Get Promotion And Increment

The French car company Reno has raised a ray of hope at a time when economic activity has come to a standstill due to...

Lorenzo really wanted to do the Wildcard in 2020, but Hard Luck.

This discussion is how Lorenzo failed to get his Yamaha Comeback. Well, he is a five-time World champion. He was looking for a wild...

Cheer up!!! Mustang Mach 1 will be back in 2021

The Ford fans were shocked when it named the all-new electric Mustang as " Mach-EV". It had major mixed reactions. Suddenly the fan's favorite...

F1 boss Chase Carey gives out 2020 calendar: New Agreements and Regulations

Formula 1 took a step ahead for the restarting of the Formula 1 races. This is for the season 2020. This is done by...

Car Loan Interest rates lowest in Seven years But not for long.

As we proceed with the pandemic, hopes are reviving. Despite the losses, we shall go again for profits. We see the nation grapple with...

2021 F1 Aero Rules – Changes and Hurts

We shall tell you that the new Aerodynamics regulations are postponed. They shall see the light in 2022. But still, we see huge changes...

Red Bull good with Verstappen and Albon for Vettel’s Return

Sebastian went well with Red Bull. They go for thirty-eight wins, sixty-five podiums, and 44 poles. They also got four championships. So, we may...

Ex McLaren Kovalainen reveals advises to Bottas to beat Hamilton

This season seems to revolve around Valterri Bottas’ Career at Mercedes. And also his contract that is going to end this year last. He...

BMW with massive grille launched, finally…

The BMW had teased a new concept with massive kidney-shaped grille, at Frankfurt Motor show last year. BMW has finally launched the concept car. Codenamed...