Fiat Chrysler and Peugeot to merge

Zubeneschamali wrote: »

The Giulia has been selling against BMW 3 series since its launch. It's a niche product, selling tens of thousands to the BMWs hundreds of thousands.

Likewise the Maserati Ghibli vs. the 5 series.

Fiat Chrysler has started 90% of planned investments in Italy: executive

MILAN (Reuters) - Fiat Chrysler (FCHA.MI) has already started 90% of the investments earmarked for Italy, the auto maker’s Chief Operating Officer for the EMEA region Pietro Gorlier said on Monday.

FCA - which is finalizing merger talks with France’s Peugeot owner PSA (PEUP.PA) to try to create the world’s fourth-largest carmaker - announced last year it would spend 5 billion euros ($5.5 billion) in Italy up to 2021.

The plan is aimed at helping the group launch its first electric and hybrid models and to fill capacity utilisation at its Italian plants.

Gorlier said that despite unfounded speculation, FCA has “consistently confirmed the plan through action, with no delays”.

“Around 90% of investments have been kicked off,” he said, according to the text of a speech he gave at the Italian car industry association ANFIA assembly, in the FCA plant in Melfi, southern Italy.

As part of its 5 billion euro plan, FCA will launch from next year its full-electric 500 small car and hybrid and electrified models of its Maserati, Jeep and Alfa Romeo brands.

Fiat Chrysler and PSA Forge Ahead With Merger Plan Despite GM Lawsuit GM lawsuit
faces uphill battle, although some financial analysts have said it could slow down merger talks
An worker inspects Peugeot 3008 compact SUVs on a PSA Group assembly line in Sochaux, France; Fiat Chrysler and PSA are moving forward with merger plans despite GM’s move to block them in court.
By Eric Sylvers in Milan and Nick Kostov in Paris
Dec. 1, 2019 7:00 am ET

Fiat Chrysler Automobiles NV and Peugeot maker PSA Group of France are moving forward on their planned $50 billion merger in coming weeks, brushing aside concerns that a recent lawsuit by U.S. rival General Motors Co. could threaten the auto industry’s biggest deal in decades.
The two companies wrote to their employees last week to say negotiations were progressing and they aimed to sign a memorandum of understanding soon. More than 50 people have been working on the merger project since Fiat Chrysler and PSA announced their deal at the end of October, the companies told employees in an internal document, a copy of which was viewed by The Wall Street Journal.
How do you think a Fiat Chrysler and PSA merger could affect the auto industry? Join the conversation below.
Fiat Chrysler and PSA updated their employees days after GM filed a racketeering suit alleging that Fiat Chrysler bribed U.S. union negotiators to gain a competitive advantage during the collective bargaining process in 2011 and 2015.
The GM suit directly accuses Sergio Marchionne, Fiat Chrysler’s longtime chief executive who died last year, of authorizing bribes as the car maker sought to gain an advantage over GM by lowering its own labor costs.
While legal experts say GM’s lawsuit faces an uphill battle, some financial analysts have said the accusations could slow down negotiations between Fiat Chrysler and PSA.
Fiat Chrysler has denied the allegations and called them meritless.
The merger partners have discussed the lawsuit, but it is unlikely to throw the deal off track, according to people on both sides of the talks. PSA agrees with Fiat Chrysler’s position that the claim is meritless, some of these people said, adding that lawyers and other specialists had examined GM’s claim for the French side. PSA would likely be supportive of any countermove, such as a countersuit, that Fiat Chrysler could choose to make against GM, these people said.
If the contention drags on past the closing of the deal, PSA Chief Executive Carlos Tavares would be well qualified to deal with it, these people said. A countersuit from Fiat Chrysler would likely lead to a discussion between the two car makers, and Mr. Tavares developed a good working relationship with GM Chief Executive Mary Barra when buying the U.S. company’s European business in 2017.
The accusations surprised both car makers, and people close to them have suggested that the lawsuit is an aggressive attempt by GM to gain leverage over Fiat Chrysler, either through financial damages or by making the merger harder to achieve. Fiat Chrysler has long sought a partner to help spread out the cost of developing new vehicles, a push that has become more pressing as global auto sales have peaked.
The GM suit relates to a long-running federal probe into corruption between leaders at the United Auto Workers union and labor-relations executives at Fiat Chrysler. UAW President Gary Jones stepped aside from his role in early November, days after federal prosecutors charged one of his top aides with embezzling union dues. Fiat Chrysler has said the wrongdoing was perpetrated by a small group of individuals acting in their own interest.
“The timing of the suit has everything to do with revelations from the U.S. government’s ongoing investigation and nothing to do with the proposed FCA-PSA merger,” GM said in a statement.
Shareholders in Fiat Chrysler and PSA will each collectively own 50% of the new entity that will emerge from the merger, which is expected to close by the end of 2020. The new company will produce almost as many cars in Europe as Volkswagen AG , the continent’s largest car maker, and will have a large presence in the U.S. and South America. Mr. Tavares will have the same role with an initial five-year term.
In a positive sign for negotiators, unions representing PSA workers have generally welcomed the deal. At a PSA European council meeting last week, 15 trade unions gave a favorable opinion on the merger, while one trade union signaled its opposition to the deal and another abstained, the car maker said.
The message to Fiat Chrysler and Peugeot employees called the memorandum of understanding “the formal document that signals the willingness of both companies to work together to create a 50/50 merger.” The negotiation process is being overseen by Doug Ostermann, Fiat Chrysler’s group treasurer and global head of business development, and Olivier Bourges, PSA’s executive vice president for program and strategy groups. The two have established nine “workstream teams” to work on the negotiations, the document said.
Fiat Chrysler and PSA told employees that the two companies would remain competitors until the merger is completed.

—Nora Naughton contributed to this article.
Write to Eric Sylvers at eric.sylvers@wsj.com and Nick Kostov at Nick.Kostov@wsj.com

Tuco88 wrote: »

Whats Ford up to? The seem to be just to be heading down the road of light commercial vehicles only.

road_high wrote: »

The only problem being that it costs just as much to develop a New Guilia as it does a new 3 Series - hence making the business case for the Guilia far far less enticing for investors. Same for the Ghibli. At a time when the desperately need new products (BMW seem to launch something new every other month).

GeneHunt wrote: »

Jayzus, that's a shocking comparison, is that true, can you link it..

ANE wrote:

Lancia sold more cars in Italy in the first nine months than Alfa Romeo sold in the whole of the European Union, according to industry association ACEA. Lancia's Italian sales rose 29 percent to 45,783 through September, while Alfa Romeo's EU sales fell 42 percent to 39,114.

GeneHunt wrote: »

Jayzus, that's a shocking comparison, is that true, can you link it. It's a shame to see Lancia with only one model range now. The Fiat 500, Panda and the Ypsilon are all ancient, it looks like Fiat Chrysler did very little with developing replacement cars in there car ranges, I know it's all down to finance, but there car ranges have been drying up for same time. The Alfa Romeo Mito, the Fiat Punto weren't replaced, and that's just two to name as examples. These areas should still be selling well, It will be hard to reclaim lost ground for some of these brands.

Lucia Slow Ballerina wrote: »

Stellantis ,

ffs seriously , its like a car make Alan Partridge would drive