Could PSA Buy FCA?

[Drew Dowdell]

The heads of FCA and PSA separately stated to journalists at the Geneva auto show that their respective companies remain open to the idea of partnering or merging with another company, though neither named which potential suitor that could be. 

Robert Peugeot, who's family owns around 14% of PSA group said, "We supported the [Opel acquisition] from the start,” he told Les Echo in an interview held Monday. “If another opportunity comes up, we will not be braking, [PSA Group CEO Carlos Taveres] knows that."

Meanwhile another potential partner could be Jaguar Land Rover.  

Merging with either company would give PSA better access to the US Market, something Peugeot is already planning on doing by 2026. 

For FCA, the benefits would be a more global partner and access to technology that would help meet Europe's strict emissions regulations.  On the flip side, it would mean 3 additional brands on top of the 7 that FCA already has. 

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[smk4565]

I believe there will be more consolation in the auto industry, there are just too many brands really and too many companies.  Like airlines, pharmacies or banks, all these things merge and consolidate.

Good news is Carlos Ghosn is out of jail and can be hired at CEO of the new PSA/FCA then lead a takeover effort of Renault/Nissan.

[G. David Felt]

Either company would be good for FCA to merge with as I think they would also benefit from the dynamics of larger global purchasing / sales.

I honestly cannot see FCA, PSA or JLR surviving much longer as an independent company.

[regfootball]

This sort of a merger may work but I’m not sure it raises their world standing at all by doing it. 

[daves87rs]

Good feeling it could happen....with more than likely the end of the dodge twins and the 300. Well, unless they just keep making it faster with updates....

Adding to Jeep, RAM and AF could be a good thing....

[riviera74]

First Peugeot buys Opel from GM, now this?  If true, then thanks for almost single-handedly solving the overcapacity problem in the industry.  If this comes to pass, Peugeot will have to do all the restructuring by itself.  Win-win for (almost) everybody!

[Drew Dowdell]

Much of the overcapacity issues at FCA involve the Italian brands even being in production in the first place. 

[ocnblu]

Would have been cool on some fronts.  Dodge desperately needs to be in more niches, so does Chrysler.  I dearly love the Charger/Challenger/300, and rue the day they no longer exist.

[oldshurst442]

11 minutes ago, ocnblu said:

I dearly love the Charger/Challenger/300, and rue the day they no longer exist.

Me too.

And I really dont think the "F" part of FCA is going to greenlight new engineering for new successors.  They wont even greenlight the Giorgio platform for Chrysler or Dodge to use...

I really hope NOBODY merges with FCA.

RAM and Jeep will survive.

Dodge and Chrysler wont, but continuing this way, Dodge and Chrysler wont survive anyway...and its an agonizing death as we all know its coming. Lets be honest with each other. Its coming. 

And...with nobody merging with FCA, Fiat and Alfa is going to the dogs too. 

Any serious money FCA is making IS with RAM and Jeep. And Dodge to a degree. Because the Challenger and Charger and 300 are selling at high enough numbers on a platform that has been paid for a while ago.  The Durango helps a lot too...because its also on a Jeep platform that Jeep sells a ton of too.

I dont think with Alfa's numbers that FCA is raking it in. Maybe Fiat in Europe is contributing to some profit? 

Maserati? 

I once supported the merger between Chryco and Fiat. But not anymore. This merger proves to be as destructive to Chryco as the one from Germany. 

But then again, Chryco was a goner anyway. At least we got another 2-3 years with a pseudo new Viper and a Hellcat-Demon-RedEye  Challenger (Charger too).  

At least the FCA merger allowed Dodge annihilate the competition in this new modern era muscle car wars! 

 

 

[Drew Dowdell]

With Jeep and RAM... the C part of FCA is in a better position than they've been in years.  They really don't need to merge with someone if they make smart use of the platforms they already have.

Make a small entry-lux SUV on the Renegade platform for Chrysler in the same formula as the Buick Encore.
Make a large crossover off the Pacifica, call it Aspen if you like.
Make an Envision sized crossover off the Cherokee for Chrysler. Build it in the US and take all the sales from Buick.
Make a new 300, Charger, and Challenger, off the Guilia platform

The next Dodge Journey can be based on the extended Jeep Cherokee that we don't get.
The Durango remains as is, an extended rebadge of a Grand Cherokee but with more street intentions than off-road.

Sell the Chryslers and Jeeps in China and the EU.  Dodge and Ram remain brands for the Americas.

Punt Fiat back to Europe and leave it there. Alfa can stay if it can make a business case for itself through platform sharing.