FCA Is Closing In On A New Merger
Has Fiat Chrysler Automobiles (FCA) finally found their merge partner? After many failed attempts to join with the French-owned Renault, FCA might have found their match. This time, another French automaker, Groupe PSA, is looking to be the winner of the FCA merger opportunity. FCA CEO Mike Manley and PSA CEO Carlos Tavares are working to finalize a deal expected before the end of 2019. Nissan Americas used to be run by the current PSA CEO. Let’s get into all the recent details of FCA’s plans to expand their company.
FCA Looking To Achieve Faster EV Production
As a company, FCA has long carried a history of being able to develop vehicles rapidly, from inception to production in as little as a year and a half. FCA CEO Mike Manley has commented that Tesla’s pooling deal with FCA will end in 2021. The speculation over whether FCA could create a new EV with Tesla hardware. One of the automotive brands under the FCA umbrella is Maserati, which had a goal of debuting a completely electric version of the Alferi by 2020. This vehicle would be built with an aluminum spaceframe. Reports have a potential merger between FCA and PSA reaching out to Tesla to be their electric battery and drivetrain supplier.
Will FCA Become the 4th Largest Automotive Manufacturer?
Should the merger take place, FCA and Peugeot SA, aka Groupe PSA, would create the 4th largest global car manufacturer in the world with an average of 8.7 million vehicles sold. FCA has strong sales in North America and Latin America and PSA are credible in Europe. The goal is still to strength their EV abilities and synergizing both companies. PSA has looked to add more in the way of EVs as well, going back to half a decade ago when they tried to developt their own platform and bought Opel for $2 billion from General Motors. Their goal was to find out how the Chevy Bolt and Volt technology was made, but upon not being able to find out they asked for a return on their deal.
Tesla To Help FCA?
When asked about the deal from FCA’s perspective, FCA CEO Mike Manley stated that the merger would allow the company to continue its electrification on a “grand scale”. This wasn’t the only headline statement Manley made. Manley believes that “the customer will be agnostic” to any company that adds components from other sources, such as help from Tesla to make their EV platforms. Tesla has already provided help to Mercedes-Benz and Toyota, so adding FCA to their list might be a possibility. FCA would modify any work provided by Tesla, such as tuning the suspension and handling to fit their brands, such as Jeep and Ram.
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