A new auto giant is about to be formed, the pending merger between Peugeot and Fiat Chrysler will make the new company fourth biggest carmaker in the world, with 8.7 million in annual vehicle sales and 400,000 employees.
And in charge of such household names is Jeep, Maserati and Vauxhall, the mix of high-end with low-end brands will mean that the group will be able to target all price points. Another advantage, almost 4 billion euros in savings.
Fiat Chrysler had been looking to pull resources with a partner, to share the cost of developing clean technology, in the midst of global crackdown on emissions.
Although the French government had previously blocked a deal between Fiat Chrysler and Nissan, they are on board with this merger.
The French minister for the economy says, “This is good news for the France. This is good news for the Europe, because you know we have to face the challenges of the electric and autonomous cars. And to face that kind of challenges, you need to have the champions at the world level.”
Peugeot’s Carlos Tavares will become managing director, while president of Fiat Chrysler John Elkann is slated to become the chair of new board of directors. Each shareholder group will share half of the capital.