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FCA's Upcoming Small Cars To Switch To PSA Group Architecture
William Maley posted an article in Fiat
Future small cars from Fiat Chrysler Automobiles will not be using an updated version of their small car platform. Instead, they'll be underpinned by PSA Group's Common Modular Platform (CMP). Automotive News obtained a letter sent by FCA to suppliers in July stating "to immediately stop any research, development and tooling construction activities on future B-segment (small/subcompact) cars." These include the Fiat 500 and Jeep Renegade to give some context. The letter goes on to say it is moving to CMP and that vehicles based on this will be built at the company's Tychy, Poland plant - home to 500 and Lancia Yplilon production. FCA had already put a stop, albeit a temporary one on developing parts for the five new small cars that were destined to use this platform due to COVID-19. There will be one model that will move forward on this orphaned platform - the upcoming 500 electric for Europe. As for CMP, this underpins the Peugeot 208 and 2008; Opel/Vauxhall Corsa, Mokka; and the DS3 Crossback. It allows for both combustion and electric powertrains. Moving to CMP is another step towards FCA and PSA Group's merger to become Stellantis. It is unclear whether or not the U.S. will see any of the new models that will use CMP from FCA's brands. Source: Automotive News (Subscription Required) -
Future small cars from Fiat Chrysler Automobiles will not be using an updated version of their small car platform. Instead, they'll be underpinned by PSA Group's Common Modular Platform (CMP). Automotive News obtained a letter sent by FCA to suppliers in July stating "to immediately stop any research, development and tooling construction activities on future B-segment (small/subcompact) cars." These include the Fiat 500 and Jeep Renegade to give some context. The letter goes on to say it is moving to CMP and that vehicles based on this will be built at the company's Tychy, Poland plant - home to 500 and Lancia Yplilon production. FCA had already put a stop, albeit a temporary one on developing parts for the five new small cars that were destined to use this platform due to COVID-19. There will be one model that will move forward on this orphaned platform - the upcoming 500 electric for Europe. As for CMP, this underpins the Peugeot 208 and 2008; Opel/Vauxhall Corsa, Mokka; and the DS3 Crossback. It allows for both combustion and electric powertrains. Moving to CMP is another step towards FCA and PSA Group's merger to become Stellantis. It is unclear whether or not the U.S. will see any of the new models that will use CMP from FCA's brands. Source: Automotive News (Subscription Required) View full article
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In a discussion about their pending merger, Fiat Chrysler revealed that the combined company's future vehicles in the small to mid-size range will be built on two of PSA's platforms. The reasoning behind it is that PSA's platforms are more modern than FCA's which first debuted in 2003. They are also capable of a wider range of propulsion methods like electrification that are harder to incorporate into the aging platform that FCA is using. The smaller of the two platforms, PSA's CMP, launched last year is found under the Peugeot 208, 2008, DS 3 Crossback and the new Opel Corsa. The larger platform is called EMP2 and launched in 2016. It underpins the Peugeot 3008, 5008, 508, DS7 Crossback, Citroen C5 Aircross, and Opel Grandland. Both of these platforms could become the basis for new Jeep, Dodge, and Fiat models. The first possible FCA model to debut on one of these platforms is likely to be a small crossover for Alfa Romeo, due out in 2022. On the other hand, the Ram trucks and larger Jeep models will continue to use technology developed by FCA. The next generation Jeep Grand Cherokee is already well into development and the forthcoming Wagoneer and Grand Wagoneer are set to go into production in early 2021. The primary question mark remains around the larger Chrysler 300, Dodge Charger and Challenger, and Chrysler Pacifica. View full article -
In a discussion about their pending merger, Fiat Chrysler revealed that the combined company's future vehicles in the small to mid-size range will be built on two of PSA's platforms. The reasoning behind it is that PSA's platforms are more modern than FCA's which first debuted in 2003. They are also capable of a wider range of propulsion methods like electrification that are harder to incorporate into the aging platform that FCA is using. The smaller of the two platforms, PSA's CMP, launched last year is found under the Peugeot 208, 2008, DS 3 Crossback and the new Opel Corsa. The larger platform is called EMP2 and launched in 2016. It underpins the Peugeot 3008, 5008, 508, DS7 Crossback, Citroen C5 Aircross, and Opel Grandland. Both of these platforms could become the basis for new Jeep, Dodge, and Fiat models. The first possible FCA model to debut on one of these platforms is likely to be a small crossover for Alfa Romeo, due out in 2022. On the other hand, the Ram trucks and larger Jeep models will continue to use technology developed by FCA. The next generation Jeep Grand Cherokee is already well into development and the forthcoming Wagoneer and Grand Wagoneer are set to go into production in early 2021. The primary question mark remains around the larger Chrysler 300, Dodge Charger and Challenger, and Chrysler Pacifica. -
Fiat Chrysler Automobiles and Peugeot S.A. have signed a binding agreement to a 50/50 merger of their businesses. Once the merger is complete, the combined company will be the fourth largest automobile producer in the world. Based on 2018 numbers, the business will sell roughly 8.7 million vehicles annually and have revenues near €170 billion. There will be a strong balance sheet that will allow the new entity headroom to execute strategic plans. Geographically, 46% of revenue will come from Europe and 43% from North America. A number of operational efficiencies will be gained by the sharing of platforms and engine technology. The number of platforms will be reduced with approximately 6 million cars a year concentrated on just two platforms.The platform consolidations will account for approximately 40% of the estimated €3.7 billion in savings expected from the merger. Peugeot CEO Carlos Tavares will be CEO of the new company and a board member, while John Elkann of FCA will be Chairman of the Board. The completion of the combination is expected to take 12 to 15 months during which time they will be completing items to the satisfaction of antitrust and other regulatory requirements. View full article
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Fiat Chrysler Automobiles and Peugeot S.A. have signed a binding agreement to a 50/50 merger of their businesses. Once the merger is complete, the combined company will be the fourth largest automobile producer in the world. Based on 2018 numbers, the business will sell roughly 8.7 million vehicles annually and have revenues near €170 billion. There will be a strong balance sheet that will allow the new entity headroom to execute strategic plans. Geographically, 46% of revenue will come from Europe and 43% from North America. A number of operational efficiencies will be gained by the sharing of platforms and engine technology. The number of platforms will be reduced with approximately 6 million cars a year concentrated on just two platforms.The platform consolidations will account for approximately 40% of the estimated €3.7 billion in savings expected from the merger. Peugeot CEO Carlos Tavares will be CEO of the new company and a board member, while John Elkann of FCA will be Chairman of the Board. The completion of the combination is expected to take 12 to 15 months during which time they will be completing items to the satisfaction of antitrust and other regulatory requirements. -
Fiat Chrysler Automobiles and PSA Group have agreed to the terms of a merger just after it was announced they were talking just yesterday. PSA's board has already agreed to the deal and is awaiting approval from FCA's board which is meeting later tonight. The merger, if approved, would create the 4th largest automotive company in the world with nearly $50 billion in value. FCA Chairman John Elkann would retain his chairmanship of the new company while Peugeot CEO Carlos Tavares would stay on as CEO. The board would be comprised of six appointees from Peugeot while FCA would get five. Both companies would pay dividends to their shareholders, €3 billion from Peugeot and €5 billion from FCA plus an additional €250 million from the sale of its Comau unit. Peugeot will sell its stake in auto parts make Faurecia. Where the new company would be based has not yet been decided. Both the French and U.S. governments have been briefed on the deal. View full article
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Fiat Chrysler Automobiles and PSA Group have agreed to the terms of a merger just after it was announced they were talking just yesterday. PSA's board has already agreed to the deal and is awaiting approval from FCA's board which is meeting later tonight. The merger, if approved, would create the 4th largest automotive company in the world with nearly $50 billion in value. FCA Chairman John Elkann would retain his chairmanship of the new company while Peugeot CEO Carlos Tavares would stay on as CEO. The board would be comprised of six appointees from Peugeot while FCA would get five. Both companies would pay dividends to their shareholders, €3 billion from Peugeot and €5 billion from FCA plus an additional €250 million from the sale of its Comau unit. Peugeot will sell its stake in auto parts make Faurecia. Where the new company would be based has not yet been decided. Both the French and U.S. governments have been briefed on the deal. -
PSA CEO Carlos Tavares said on the BFM Business radio station none of the brands would be let go after the merger of PSA and FCA is complete. He said it will be a challenge to manage all of the brands to cover the market, but that he sees "that all these brands, without exception, have one thing in common: they have a fabulous history." While acknowledging that the combined companies would have a significant number of brands, it would still be lower than the number Volkswagen manages. The combined companies would field Peugeot, Citroën, DS, Fiat, Opel, Vauxhall, Fiat, Chrysler, Dodge, Jeep, Ram, Alfa-Romeo, Maserati, and Lancia. Both companies will aim for efficiencies of scale and are are willing to make concessions to the European Union in order to get the okay to merge. -
PSA CEO Carlos Tavares said on the BFM Business radio station none of the brands would be let go after the merger of PSA and FCA is complete. He said it will be a challenge to manage all of the brands to cover the market, but that he sees "that all these brands, without exception, have one thing in common: they have a fabulous history." While acknowledging that the combined companies would have a significant number of brands, it would still be lower than the number Volkswagen manages. The combined companies would field Peugeot, Citroën, DS, Fiat, Opel, Vauxhall, Fiat, Chrysler, Dodge, Jeep, Ram, Alfa-Romeo, Maserati, and Lancia. Both companies will aim for efficiencies of scale and are are willing to make concessions to the European Union in order to get the okay to merge. View full article
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According to a report in the Wall Street Journal, Fiat Chrysler Automobiles and PSA are in merger talks. This after the failed merger negotiations last spring between FCA and Renault. The merger is reportedly an all-share merger of equals with PSA CEO Carlos Tavares at the helm as CEO and FCA Chairman John Elkann retaining his position in the new company. The "talks are fluid" and the paper reported that "no guarantee that any final agreement will be reached". FCA had previously turned down a merger offer from PSA back in March. PSA is still digesting their acquisition of Opel from General Motors. View full article
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According to a report in the Wall Street Journal, Fiat Chrysler Automobiles and PSA are in merger talks. This after the failed merger negotiations last spring between FCA and Renault. The merger is reportedly an all-share merger of equals with PSA CEO Carlos Tavares at the helm as CEO and FCA Chairman John Elkann retaining his position in the new company. The "talks are fluid" and the paper reported that "no guarantee that any final agreement will be reached". FCA had previously turned down a merger offer from PSA back in March. PSA is still digesting their acquisition of Opel from General Motors. -
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Fiat Chrysler Automobile has abruptly pulled back on their merger offer with Renault after the second day of negotiations came to a close. The Wall Street Journal reports that Renault's partner, Nissan declined to support the deal according to sources. During a vote today on the Renault board, the two Nissan representative abstained, raising concerns for both FCA and Renault that Nissan would back out of the alliance. This, in turn, caused the French Government (major stakeholder in Renault), to not pledge its support of the deal. The government asked for a delay on the vote until Nissan would guarantee that it would continue with the alliance. The falling of these dominos prompted FCA to withdraw their offer. The move is a heavy blow as FCA had reached a tentative agreement with the French Government on the merger according to two sources speaking to Reuters. FCA, Renault, and the French Government declined to comment. We'll update this story if any new details come to light. Source: Automotive News (Subscription Required), Bloomberg, Wall Street Journal (Subscription Required) -
Fiat Chrysler Automobile has abruptly pulled back on their merger offer with Renault after the second day of negotiations came to a close. The Wall Street Journal reports that Renault's partner, Nissan declined to support the deal according to sources. During a vote today on the Renault board, the two Nissan representative abstained, raising concerns for both FCA and Renault that Nissan would back out of the alliance. This, in turn, caused the French Government (major stakeholder in Renault), to not pledge its support of the deal. The government asked for a delay on the vote until Nissan would guarantee that it would continue with the alliance. The falling of these dominos prompted FCA to withdraw their offer. The move is a heavy blow as FCA had reached a tentative agreement with the French Government on the merger according to two sources speaking to Reuters. FCA, Renault, and the French Government declined to comment. We'll update this story if any new details come to light. Source: Automotive News (Subscription Required), Bloomberg, Wall Street Journal (Subscription Required) View full article
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The merger between FCA and Renault has crossed another hurdle overnight with FCA agreeing to a compromise with the French government. The issue surrounded the French government's desire for a guaranteed seat on the company's board of directors and effective veto power on CEO appointments. In a compromise, Renault would give up one of its own board seats for one occupied by a representative of the French government. The makeup of the board would then be 4 seats allocated to FCA appointees, three to Renault appointees, and one to the French government. France is Renault's largest shareholder with a 15% stake in the company. Additionally, Renault would give up one of its two seats on the 4 member CEO selection committee to the French government. The new proposal goes to Renault's board for consideration. -
The merger between FCA and Renault has crossed another hurdle overnight with FCA agreeing to a compromise with the French government. The issue surrounded the French government's desire for a guaranteed seat on the company's board of directors and effective veto power on CEO appointments. In a compromise, Renault would give up one of its own board seats for one occupied by a representative of the French government. The makeup of the board would then be 4 seats allocated to FCA appointees, three to Renault appointees, and one to the French government. France is Renault's largest shareholder with a 15% stake in the company. Additionally, Renault would give up one of its two seats on the 4 member CEO selection committee to the French government. The new proposal goes to Renault's board for consideration. View full article
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A Nissan executive who has declined to be identified is upbeat about the possible FCA-Renault merger according to a report by AutoBlog. The deal, estimated at about $35 billion, would not give FCA the right to use Nissan technology via the Nissan-Renault alliance. The executive said he was optimistic about possible synergies of using Nissan's green and electric vehicle know-how in other vehicles. He also raised the possibility that Nissan could increase its stake, currently 15%, in Renault or FCA-Renault. Without increasing their stake, Nissan's share of the resulting company would be cut to 7.5%. FCA-Renault however, would continue to hold 43.4% of Nissan. Examples of some of the sharing could be Nissan's advanced engine technology currently used in Infiniti as a possible benefit for Alfa Romeo and Jeep. FCA and Renault for their part are still negotiating with each other and with the French government which wants job and production guarantees. Renault is said to have a decision on the merger by end of this week. -
A Nissan executive who has declined to be identified is upbeat about the possible FCA-Renault merger according to a report by AutoBlog. The deal, estimated at about $35 billion, would not give FCA the right to use Nissan technology via the Nissan-Renault alliance. The executive said he was optimistic about possible synergies of using Nissan's green and electric vehicle know-how in other vehicles. He also raised the possibility that Nissan could increase its stake, currently 15%, in Renault or FCA-Renault. Without increasing their stake, Nissan's share of the resulting company would be cut to 7.5%. FCA-Renault however, would continue to hold 43.4% of Nissan. Examples of some of the sharing could be Nissan's advanced engine technology currently used in Infiniti as a possible benefit for Alfa Romeo and Jeep. FCA and Renault for their part are still negotiating with each other and with the French government which wants job and production guarantees. Renault is said to have a decision on the merger by end of this week. View full article
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PSA Group is starting to sound a bit desperate for a merger these days. First they bought GM's Opel Unit for $1.54b, later demanding a roughly 50% refund due to issues stemming from extra rosy sales forecasts and emissions regulations trouble. PSA has quickly turned around the Opel unit into a profit center instead of the loss-maker it was under GM control. More recently, Peugeot was seen to be dancing with FCA only to be rebuffed when it came to light that any merger between the two companies would come in the form of PSA stock. Now PSA Group CEO Carlos Tavares says that he would be interested in a merger with Jaguar Land Rover, saying he would be interested in having a more premium brand above their current DS line. Jaguar Land Rover is struggling with sales declines, but parent company Tata has said "There is no truth to the rumor that Tata Motors is looking to divest its stake in JLR". So it is back to the dance floor for PSA without a partner. Lets see who they come up with next. View full article
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Peugeot Interested in Jaguar-Land Rover; Tata says "Not Interested"
Drew Dowdell posted an article in Peugeot
PSA Group is starting to sound a bit desperate for a merger these days. First they bought GM's Opel Unit for $1.54b, later demanding a roughly 50% refund due to issues stemming from extra rosy sales forecasts and emissions regulations trouble. PSA has quickly turned around the Opel unit into a profit center instead of the loss-maker it was under GM control. More recently, Peugeot was seen to be dancing with FCA only to be rebuffed when it came to light that any merger between the two companies would come in the form of PSA stock. Now PSA Group CEO Carlos Tavares says that he would be interested in a merger with Jaguar Land Rover, saying he would be interested in having a more premium brand above their current DS line. Jaguar Land Rover is struggling with sales declines, but parent company Tata has said "There is no truth to the rumor that Tata Motors is looking to divest its stake in JLR". So it is back to the dance floor for PSA without a partner. Lets see who they come up with next. -
Renault and Nissan want to Formally Merge; Make Bid for FCA
Drew Dowdell posted an article in Automotive Industry
Financial Times is reporting that Renault wants to make the marriage to Nissan more official and formally merge. Renault wants to start talks within the next 12 months and include a potential bid for automaker FCA . The combined companies of Nissan, Renault, Fiat, and Chrysler would be a conglomerate that rivals the size of Toyota and Volkswagen. Carlos Ghosn tried to start merger talks prior to his arrest for financial wrongdoing, however, the French government stopped his proposals. Renault currently owns roughly 43% of Nissan. FCA has recently been in the news for potential talks with Peugeot to merge. Those reports were squashed when it came to light that the Agnelli family, who has a controlling stake in FCA, was not interested in a deal that was paid for with PSA stock. -
Financial Times is reporting that Renault wants to make the marriage to Nissan more official and formally merge. Renault wants to start talks within the next 12 months and include a potential bid for automaker FCA . The combined companies of Nissan, Renault, Fiat, and Chrysler would be a conglomerate that rivals the size of Toyota and Volkswagen. Carlos Ghosn tried to start merger talks prior to his arrest for financial wrongdoing, however, the French government stopped his proposals. Renault currently owns roughly 43% of Nissan. FCA has recently been in the news for potential talks with Peugeot to merge. Those reports were squashed when it came to light that the Agnelli family, who has a controlling stake in FCA, was not interested in a deal that was paid for with PSA stock. View full article
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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. View full article
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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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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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