PSA, which makes Citroen, Peugeot, DS, Opel and Vauxhall cars, has agreed a merger with Fiat Chrysler Automobiles in a move that will raise eyebrows to hairlines all over the industry.
The move means that, once the marriage is complete, Maserati will once again be under the same roof as Citroen, raising all sorts of exotic possibilities. A couple of months ago we imagined some of the possible cars we’d love to see from the then-rumoured merger, but now some of them really might become a reality.
Combining the two groups will create the world’s fourth-largest car-maker by volume and the third-largest by revenue, according to a press release that announced the merger. Annual joint sales are in the region of 8.7 million cars, with revenues of almost €170 billion (£144.4bn).
The move is estimated to lead to €3.7 billion (£3.14bn) in savings without closing any factories. The bean-counters say the aligned brands will be making a profit from year one, securing the brands and the hundreds of thousands of employees who work for them.
Carlos Tavares, current big cheese at PSA, will be Group CEO of the new goliath. It’s a seriously aggressive move for a company that has only recently acquired another major brand and paints an interesting picture for how each brand is going to differentiate itself over the coming years. Tavares said:
“Our merger is a huge opportunity to take a stronger position in the auto industry as we seek to master the transition to a world of clean, safe and sustainable mobility and to provide our customers with world-class products, technology and services.
“I have every confidence that with their immense talent and their collaborative mindset, our teams will succeed in delivering maximized performance with vigour and enthusiasm.”