Late this week it was officially announced that an amalgam of famous car brands, including Vauxhall, Ram, Peugeot, Opel, Maserati, Fiat, DS, Dodge, Chrysler, Citroen, and Alfa Romeo, have combined into the fourth biggest car maker in the world. They will start merging their operations in a matter of weeks. In a press release given to the media on Thursday, PSA Group and FIat Chrysler explained that it would be a fifty-fifty merger that will save the new company up to four billion dollars (or nearly four billion euros) a year from increased efficiency and economy of scale without having to close down any of their existing auto manufacturing plants worldwide.
And while only a small portion of the sales from either automaker goes towards specialty vehicles like those found in funeral homes, places to buy casket online, and other somewhat somber professions, these industries will be impacted. Make no mistake.
The merger seems sensible to most auto industry analysts because FCA has a very strong sales presence in the United States, along with its premium portfolio of SUV, trucks, and luxury brands. Meanwhile, PSA is very strong in sales in the European Union, plus the brands it represents have been labeled as ‘ahead of the pack’ when it comes to technology and better chassis design. PSA will also bring to the merger its knowledge and goodwill in the area of battery charged vehicles.
The brand new corporation has yet to come up with a name for itself. That will probably be one of the first things decided when the new auto company registers for business in the Netherlands, where its corporate headquarters will be located. The press release was quick to point out, however, that the new company will maintain full-scale branch offices in the United States, Italy, and most probably France. Because of the current confusion about when Brexit will become official for Great Britain, the new automaker has no plans on opening up corporate office in the British Isles. PSA leader Carlos Tavares is slated to become the CEO of the new company in January of next year. Chairman of the eleven person board that will oversee all operations will be John Elkann of the FCA.