What would be the advantages of a merger between PSA and FCA?
- There are rumors of a possible merger between the PSA and FCA groups. What would be the advantages of such a rapprochement?
- First, a larger scale use of PSA platforms and engines (because FCA platforms are old), would be a clear advantage, since the two groups produced a total of nearly 9 million vehicles in 2018 (4.9 million for FCA and 3.9 million for PSA), compared to 7 million in 2010. These are two growing groups, notably through the acquisition of Chrysler/Jeep by Fiat and Opel/Vauxhall by PSA. With such volume, this association would become the 4th largest manufacturer in the world behind the Volkswagen, Renault-Nissan and Toyota groups.
- Secondly, geographically speaking, the two automakers are quite complementary, since the PSA group makes 80% of its sales in Europe while the FCA group makes 55% of its sales in North America. On the other hand, they are both quite weak in the world's largest market, China, as well as in other major markets such as Japan, Korea and Russia.
- At the range level, the complementarity is quite obvious, since the FCA group has a large number of SUVs and pick-ups, which account for 57% of its worldwide sales, while the PSA group has a large number of sedans, which make up 51% of its worldwide sales. The PSA group also sells more commercial vehicles than the FCA group. It should also be noted that PSA sells certain commercial vehicles resulting from a collaboration with Fiat (Peugeot Boxer, Citroën Jumper).
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