Fiat Chrysler and PSA Peugeot Merged to Be the Fourth Largest Automaker
Daniel Johnson — November 4, 2019 — Autos
The Italian and American company, Fiat Chrysler, will merge with France's PSA Peugeot in order to become the fourth largest automaker in the world. The two companies will look to sign a Memorandum of Understanding before the end of 2019. The merger will be 50-50 and is a deal worth approximately $50 billion.
By combining resources, the two organizations will be better able to prepare for the future of electric and autonomous vehicles. Additionally, the merger was agreed to without any factory closures from either organization.
Carlos Tavares, the PSA Peugeot CEO spoke about the merger, stating “This convergence brings significant value to all the stakeholders and opens a bright future for the combined entity.”
Image Credit: Shutterstock
By combining resources, the two organizations will be better able to prepare for the future of electric and autonomous vehicles. Additionally, the merger was agreed to without any factory closures from either organization.
Carlos Tavares, the PSA Peugeot CEO spoke about the merger, stating “This convergence brings significant value to all the stakeholders and opens a bright future for the combined entity.”
Image Credit: Shutterstock
Trend Themes
1. Electric Vehicles - Disruptive innovation opportunity: The merger allows the combined entity to pool resources and expertise to accelerate the development and production of electric vehicles.
2. Autonomous Vehicles - Disruptive innovation opportunity: The merged automaker can leverage their combined capabilities to advance research and development in autonomous vehicle technology.
3. Mergers and Acquisitions - Disruptive innovation opportunity: The successful merger between Fiat Chrysler and PSA Peugeot serves as a model for other automakers exploring partnerships to enhance competitiveness and address industry challenges.
Industry Implications
1. Automotive - Disruptive innovation opportunity: The merger highlights the need for automakers to collaborate and consolidate in order to adapt to the evolving landscape of electric and autonomous vehicles.
2. Electric Vehicle Manufacturing - Disruptive innovation opportunity: The merger creates a stronger player in the electric vehicle manufacturing industry, with the potential to shape the future of sustainable transportation.
3. Automotive Technology - Disruptive innovation opportunity: The merged entity can drive advancements in automotive technology by combining their research and development efforts, leading to breakthroughs in electric and autonomous vehicle technology.
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