Merger of PSA and FCA : analysis (2/4)
- This merger would also allow geographical complementarity, since FCA achieves 54% of its sales in North America and 26% in Europe, while PSA achieves 84% of its sales in Europe and 0% in North America. Thus, the PSA-FCA group has two more balanced sales regions: Europe (51% of sales) and the USA (28% of sales). By contrast, China would remain marginal, with 4% of global sales. Compared to the Volkswagen, Toyota or Renault-Nissan groups, the PSA-FCA group has a strong European and American base, but a very weak Chinese base, which is a handicap given the strong potential of the Chinese market.
- In Europe, the new group would trail the leading Volkswagen group with 22.5% of the market (16% for PSA and 6.5% for FCA) against 24% for the German manufacturer.
- The merger would also allow PSA to gain a foothold on US soil (FCA represents 13% of the US market, inherited from the presence of the Chrysler Group) that it had abandoned in the 90s and that it had planned to reinvest in a form or under another. This return to US soil will be done without any additional investment from PSA, via the Chrysler brands. An attack on the US market via European brands could be envisaged but seems difficult.
- The new group would be the first manufacturer in South America, thanks to the strong presence of Fiat.
- By cons it would be virtually absent from the Chinese market since PSA and FCA only realize anecdotal sales (1% of the market together). It would also be almost absent in the Indian market and in the ASEAN zone.
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