Could this merger mean we get more small cars in America? Future product questions are currently difficult to answer.

Peugeot

We've known for almost exactly a year that it was Fiat Chrysler and the French automaker PSA Flirt with a merger. This potential connection could help both companies deal with the ongoing COVID-19 pandemic and likely save them huge sums of money developing new vehicles, especially greener all-electric models.

Well, Reuters reported Monday that this corporate connection is one step closer to reality. The European Commission has kicked off this $ 38 billion deal, an important hurdle to overcome.

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The all-share deal would start a new company called Stellantiswhat sounds like the home planet of an alien race in a science fiction franchise. What is not a fantasy, however, is the money this combined unit could save. Synergies are appreciated between the two automakers who like popular brands jeep, Ram truck and Maserati on the FCA page of the ledger as well Peugeot and Opel The PSA portfolio could save up to $ 6 billion per year. It is forecast that 20% of this could come from areas such as logistics and marketing, while the remaining 80% could be realized in product-related areas and purchasing.

Together, these two companies could form the fourth largest automaker in the world.

FCA / PSA

But perhaps more importantly, these savings could reportedly be achieved without shutting down manufacturing plants, which is always a controversial issue and stirs the wrath of unions and governments alike.

Of course, there are still some antitrust concerns and many other unanswered questions to resolve regarding things like vehicle maintenance, but the die seems to be cast. The merger between FCA and PSA could be completed as early as the first quarter of 2021. Once the financial dust settles, the newly formed Stellantis could become the fourth largest automaker in the world.

The 2020 Chrysler Pacifica is still the minivan to beat

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2020 Chrysler Pacifica Limited

2020 Chrysler Pacifica Limited


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