Fiat Chrysler, Peugeot Owner PSA in Talks to Combine

**313WX** · October-29-19, 05:35 PM

If combined, the company would be larger than both Ford & GM in terms of sales volume.

https://www.wsj.com/articles/fiat-ch...=djemalertNEWS

**Metro25** · October-30-19, 10:42 AM

FCA seems absolutely determined to merge with somebody. What is the benefit of this?

**ndavies** · October-30-19, 10:51 AM

Originally Posted by Metro25

FCA seems absolutely determined to merge with somebody. What is the benefit of this?

Lowered development costs. It spreads the costs of developing Electric and automated vehicles across more car lines. It lowers the cost of R&D needed to carry a vehicle line forward.

**401don** · October-30-19, 11:27 AM

Originally Posted by ndavies

Lowered development costs. It spreads the costs of developing Electric and automated vehicles across more car lines. It lowers the cost of R&D needed to carry a vehicle line forward.

Also, if ride sharing, etc. means less individual ownership in the future more consolidation will be necessary. With the high development costs there simply won't be enough revenue for everybody.

**313WX** · October-30-19, 11:28 AM

Originally Posted by ndavies

Lowered development costs. It spreads the costs of developing Electric and automated vehicles across more car lines. It lowers the cost of R&D needed to carry a vehicle line forward.

It also helps them to enter into other vehicle segments and regions, gaining market share.

**401don** · October-30-19, 11:45 AM

Originally Posted by 313WX

It also helps them to enter into other vehicle segments and regions, gaining market share.

Pretty soon there will only be 5 segments left - small, medium & large suv's, big trucks and really big trucks.

**313WX** · October-30-19, 02:15 PM

It's happening.

Fiat Chrysler and Peugeot reportedly reach deal to merge

https://www.cnbc.com/2019/10/30/anot...s-rewards.html

**LongGone06** · October-30-19, 04:05 PM

Originally Posted by Metro25

FCA seems absolutely determined to merge with somebody. What is the benefit of this?

FCA's former CEO, Sergio Marchionne, strongly believed that substantial money and resources were being wasted in product development by the sheer number of independent manufactures. He argued that consolidation was necessary for the industry to flourish, and for these companies to remain profitable. At one point, he tried to woo General Motors.

**p1acebo** · October-30-19, 05:50 PM

Originally Posted by LongGone06

FCA's former CEO, Sergio Marchionne, strongly believed that substantial money and resources were being wasted in product development by the sheer number of independent manufactures. He argued that consolidation was necessary for the industry to flourish, and for these companies to remain profitable. At one point, he tried to woo General Motors.

From a business prospective I get it, but with all of these mergers won't cars look and feel all the same? I mean I feel like vehicles in general look so similar as is, it would just get worse.

**401don** · October-30-19, 06:24 PM

Originally Posted by p1acebo

From a business prospective I get it, but with all of these mergers won't cars look and feel all the same? I mean I feel like vehicles in general look so similar as is, it would just get worse.

I think that ship has sailed. That's why I made the comment about 5 vehicle segments. When Chrysler merged with Fiat it looked like it was giving Chrysler access to small cars [[which, granted, nobody wanted) and Fiat to trucks. Peugeot used to have some great looking sedans but I took a look at their line-up and was surprised it's almost all suv's/crossovers as well.

**Danny** · October-31-19, 07:13 AM

FCA will become PFCA... What's next. GMPFCA-Ford!!

**Johnnny5** · October-31-19, 07:18 AM

We're already facing headwinds in the auto industry, and combining with France based Peugeot will likely push the balance of power at FCA further towards Europe.

They may be trying to sell this as a merger of equals, but the stock prices of the two this morning say otherwise. If this happens, Metro Detroit is likely to end up with the short end of the stick.

**Atticus** · October-31-19, 07:18 AM

The real question I have is what does this mean for the region?

I am assuming that Auburn Hills will remain the North American HQ. Does this merger bring new or expanded engineering here, or does that get shifted to somewhere in Europe? As part of any large merger, much of the cost savings comes from eliminating redundancy and streamlined functions. Does the streamlining come at the expense of jobs here, or somewhere else?

To me, this merger presents an opportunity to create new jobs and new technologies here, or to watch existing jobs get shipped elsewhere. Hopefully the local leadership is involved and takes the right steps to grow employment here.

**JonWylie** · October-31-19, 07:28 AM

Originally Posted by Atticus

The real question I have is what does this mean for the region?

I am assuming that Auburn Hills will remain the North American HQ. Does this merger bring new or expanded engineering here, or does that get shifted to somewhere in Europe? As part of any large merger, much of the cost savings comes from eliminating redundancy and streamlined functions. Does the streamlining come at the expense of jobs here, or somewhere else?

To me, this merger presents an opportunity to create new jobs and new technologies here, or to watch existing jobs get shipped elsewhere. Hopefully the local leadership is involved and takes the right steps to grow employment here.

I don't anticipate the Jeep/Dodge/Chrysler leadership will go anywhere. Peugeot chose Atlanta for its NA HQ so I'm not sure we'll gain any workers either. Maybe they will shift to Michigan now, but I see that at more likely than moving FCA anywhere

**1953** · October-31-19, 10:32 AM

On account of its accumulation of brands, and GM's divestment of brands during bankruptcy, I think Chrysler should now be called General Motors and GM should be called, by extension, Specific Motors.

**313WX** · October-31-19, 11:50 AM

Originally Posted by JonWylie

I don't anticipate the Jeep/Dodge/Chrysler leadership will go anywhere. Peugeot chose Atlanta for its NA HQ so I'm not sure we'll gain any workers either. Maybe they will shift to Michigan now, but I see that at more likely than moving FCA anywhere

Groupe PSA only has 15 workers at a temporary wework office in Atlanta. That can all easily be uprooted.

I'd be surprised if the gravity of operations doesn't remain in Detroit, at least for NA.

**pocketchange** · November-01-19, 08:38 AM

I don't see how this will really help the NA side of FCA. FCA already has difficulties selling the EU product [[Fiats/Alfas) in NA in large volumes. It seems what FCA NA could use are platforms to expand beyond Jeep/Ram in the form Americans want to purchase. I don't see how PSA helps this. I do see how it would help FCA EU and PSA in Europe, and impacting the work force there.

**Metro25** · November-01-19, 10:27 AM

Does it benefit us? Does it not? Does it make them more competitive in self-driving or electric vehicles? Does it not?

Just seems like a whole lot of nothing. How lame.