Chrysler News: FCA Turned Down PSA Merger Offer

[Drew Dowdell]

The rumors that PSA and FCA may merge can be put to bed now.  Sources familiar with the discussion told the Wall Street Journal that executives from the respective companies are no longer in talks.  FCA was reticent about the idea because it would increase the companies reliance on the struggling European market, and the Agnelli family, who has a controlling stake in FCA, was not interested in a deal that was paid for with PSA stock. PSA would need to use equity to pay for FCA because they are still digesting their acquisition of Opel from General Motors. 

Had they merged, the combined company would produce over 9 million vehicles per year, putting them on a playing field with Volkswagen and Nissan-Renault.  It would also give PSA a much needed foothold into the U.S. market for their planned 2026 re-entry. 

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[riviera74]

Well that is lame.  I wonder who else could merge with FCA.

[smk4565]

One day the Chinese will own both these companies anyway.

[G. David Felt]

Right now the only way either company will survive is when they are bought out with cash that makes the legacy families money they can then walk away from. They have no real interest in making a profitable company or quality as all you have to do is look at their current financial mess.

Chinese ownership is the future for them.

[Drew Dowdell]

18 hours ago, riviera74 said:

Well that is lame.  I wonder who else could merge with FCA.

Land Rover - Jaguar  or Mazda or even Hyundai

The thing is, I think they've already turned down those options. 

[loki]

a new conglomerate of Saturn Hummer Olds Mercury plymoth(pontiac) AMC - SHAMPO, they will bu(r)y FCA into the fold.

Edited March 25, 2019 by loki