Peugeot and Fiat Chrysler combine forces in new £38 billion deal
There will thankfully be no factory closures
Two mega car manufacturers, Peugeot and Fiat Chrysler have just agreed to a £38 billion merger deal which will make them the fourth largest auto manufacturer in the world.
The two companies, also known as PSA group and Fiat Chrysler Automobiles have decided to merge due to saving money essentially. Along with this, there will be no factory closures which is good thing for over 1,000 workers at the PSA Vauxhall factory in Ellesmere Port.
Concerns were raised when the merger was first hinted at that a large number of employees would be under threat. However, the company are yet to confirm which manufacturing plants will be involved in the merger.
Earlier in the year Fiat Chrysler attempted a merger with Renault, but this plan was duly cut short after the French government, which owns 15% of the marque, staged an intervention.
Due to their sales in 2018, the two companies will make a combined revenue of £170bn and operating profits of £11bn. The new name is yet to be announced, but what about Peuiatysler, or maybe just Peu? This is why I am not in charge of naming car companies...
It will be very interesting to see what they come up with. Only time will tell.