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Discussion Starter #1
So it looks like a 50-50 merger with PSA is going to happen.

Thoughts or opinions? I looked at Groupe PSA's offerings, and I'm not sure what they bring to the table, but that may just be their english websites being meh or their UK offerings being meh. IT seems like all their brands are 80-90% low effort re-badging of the same vehicles. Very 1980s GM looking strategy there.

Also, they do seem to have had some fairly competent management to turn around their issues since 2013-2014 or so from a strictly financial standpoint.

Especially for our European members, is there anything exceptional or awful worth noting? Does PSA have a better culture with regard to quality?

They say they aren't shutting down any plants but will be realizing 1.4 billion in savings the first year, so something has got to stop having money tossed at it for that to happen.
Also no ditching any brands.
 

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I'm fairly optimistic about this one.

It's not the old Daimler "merger of equals" where, well, Chrysler got bought. Then gutted by the Germans.

It's not being sold off to a capital management firm like Cerburus, who have absolutely zero knowledge of how to run an automaker (and screwed up while learning), then bailed out themselves and left the company to face bankruptcy.

What it DOES appear to be is a true 50/50 merger. The board of 9 members will get 5 PSA seat (one being Tavares, PSAs current CEO), and 4 got to FCA. But FCA, via the Agnelli family that control Fiat, gets it's man John Elkann as CEO. They also maintain a significant amount of control in the new company via stock. (I won't say "controlling interest" or "majority stakeholder", as to honest, I'm not sure if those terms can be accurately applied here.

Tavares takes over as CEO of the new company, but FCA CEO Mike Manley (a Brit and one of Sergio's hand chosen successor candidates) stays on to continue to run the current FCA, and North American operations, including the Jeep brand he once oversaw. Manley has said he and Tavares are friends outside of work, he has temendous respect for him, and he looks forward to doing his part running the new company. PSa and FCA also have a decade or so old partnership making commercial truck in Europe I believe. Heck, if you wanna go way back, the original Omni/Horizon launched with Peugot 1.6 engines under the hood back in '78. Oh, and PSA also bought the Chrysler Europe operation when the cash strapped parent here was getting out c1979.

They have promised no plant closures. But have not promised no layoffs. There may be some duplication of effort in the white collar ranks, but it would seem on the face of it that jobs here in the States are faily secure, as PSA has no presence in this country. And in Europe, it's damn near impossible to lay people off.

From what I've seen, most if not all of the saving are from increased purchasing power of the new, much larger company. This merger makes them the 4th largest auto maker behind #1 Volkswagen, #2 Toyota, and #3 Renault/Nissan. Bigger than Ford, Bigger than GM.

As for product, all things are cyclical. Cars are out right now, in favor of SUVs and CUVs. But I believe that will change. And I've alerady seen one trade magazine that said the same. Kids of the last decade or more who grew up rising in Mom and Dads SUVs will not find SUVs attractive. They wil want something else, just as a generation before them avoided minivans in droves.

PSA has several popular, successful car platforms. They also now own Opel, having bought it from the ashes of a shuttered GM Europe. Current Buick Regal sedan, Crosstour wagon, Cascada convertible, and previous Saturn Astra were/are all rebadged Opels. And all pretty well reviewed vehicles.

What they don't have are a lot of is truck, SUV and CUVs experience. So there is some dovetailing of platforms that is a good thing.

They are also ahead of FCA on electrification from what I understand. That alone could be a big boost to FCA.

The one thing the merger lacks (that the Renault merger of this spring would have offered) is better access to China. Both PSA and FCA are very week in that market, the worlds largest.
 

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Discussion Starter #3
I wouldn't put too much faith in models based on a GM platform. I suspect a merger like this will bring such licensing to an end.

I would say that PSA brings something to the table in keeping a variety of hatch and sedans alive in europe in case they come back here, but that was kind of my point. I remembered some neat cars and went looking for thier current state and what I saw wasn't very interesting and was a smaller range of models with more low effort brand "engineering" than I remember.

I'm not sure what value PSA brings to the table today, or tomorrow really. It seems they have like one self-owned city car platform and that's about it. Everything else seems to be licensed. If they are doing better in china than FCA, effectively having instant expansion there rather than having to fight for it is worthwhile. I don't see any real ground being gained in launching of EV or serious hybrid offerings.
 
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