Groupe PSA and FCA will Merge, Creating the World’s 4th Largest Automaker

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Groupe PSA, the manufacturer of Peugeot, Citroen, DS, Opel, and Vauxhall, is merging with FCA (Fiat Chrysler Automobiles) who is selling under the brands of Fiat, Chrysler, Ram, Lancia, Jeep, Abarth, Alfa Romeo, Dodge, and Maserati.

The deal lays the ground for a 50/50 merger, which will create the 4th largest car manufacturer in the world, beating General Motors in the position, and sitting just under Toyota (1st), the VW Group (2nd), and Hyundai/Kia (3rd). The estimated total sales that will come out of FCA and PSA combined is 8.7 million cars annually.

Now, based on last year’s numbers, the two companies will have a combined revenue of nearly $190 billion, and a recurring operating profit of $12.2 billion. All these numbers may not say much to those who haven’t been following the global automotive market, but we can just say that their size is large enough to bring many changes in the field.

We don’t know if there is going to be a new name to unite the two entities under the same umbrella, or if they are going to continue to use their individual brands. However, it was clarified that the merger will take place under a Dutch company which will be listed on the New York Stock Exchange, the Milan’s Borsa Italian, and the Euronext in Paris.

As for other details of the synergy, both have stated that no production plants will be closed. The head of the new merger will be Carlos Tavares, a Portuguese businessman who was Carlos Ghosn’s “apprentice”. Ghosn is the former boss of the Renault Nissan Mitsubishi alliance, who is now in jail after planning to merge the three brands. Apparently, the man had a plan that was in perfect alignment with the current and future trends in the automotive market, and this latest news affirms that.