PSA and FCA are joining forces in a $48 billion mega-merger
If you thought that 2020 was going to be an exciting year for the automotive industry, you'd be right. If you thought we'd be driving around like the Jetsons, you're not entirely right, but some out of this world stuff is happening in the industry that is definitely worth your attention.
PSA and FCA have announced a truly monumental merger, which if this comes to fruition, will mean that the joint-company will be the fourth largest automaker in the world. The proposed merger would mean that Fiat, Chrysler, Jeep, Dodge, Ram, Vauxhall, Opel, Peugeot, Citroen and DS would all be under the same corporate umbrella, which leads to some truly incredible hypothetical scenarios.
While Peugeot has announced that they want to reach the US market by 2022, having the FCA dealer network at their disposal could make that happen relatively quickly. Their exceptional styling and sportiness might be exactly what FCA dealerships have been missing, considering their only sedans are the Chrysler 300 and Dodge Charger.
That being said, we could also see a lot of badge engineering as well. While it would be horribly impractical to sell both Vauxhall and Opel over here, I could also see them coming over to the US wearing American badges, like their previous owners, General Motors, had done.
While the French, Italian and American governments get their hands on the deal, several questions remain unanswered, such as factory locations and production operations. Being the fourth largest automaker in the world is no small feat, but if FCA and PSA want to succeed, then they'll need to sit down and think about where and how their vehicles are be produced, and sold.
I think that this would be an incredible deal, but I'm a little skeptical about the details that still need to be ironed out. The logistics behind the companies selling products in their respective markets is important, and cross-pollination could prove difficult with the proposed tariffs on imported vehicles into the US.
There's a lot of excitement surrounding this merger, but we need to remember that nothing is set in stone yet, and there's a lot of elements to consider in this merger that could lead to a considerable shift in FCA and PSA dealerships around the globe. On top of all of that, are the yelling matches between the politicians from the US, France and Italy that will occur to make sure that each country is getting a fair shake. I'm excited to see how this will play out as this sort of thing doesn't happen too frequently. FCA has been pushing for a deal like this for the last several years, and with PSA acquiring Vauxhall and Opel from GM in 2017, additional expansion could be just what the doctor ordered for both of these massive companies.
What do you think of the merger between PSA and FCA? What do you want to see come of it? Comment Below!