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BangShift Question Of The Day: FCA + PSA, Good Or Bad?

BangShift Question Of The Day: FCA + PSA, Good Or Bad?

Earlier this week Fiat Chrysler Automobiles and Groupe PSA agreed to a $50 billion, 50/50 merger of their businesses. The new company will be based out of The Netherlands, and so far at least, there is no plan to cull any of the automotive nameplates, which means that Peugeot, Citroën, Opel, Vauxhall, Abarth, Alfa Romeo, Fiat and Fiat Professional, Lancia, Dodge, Chrysler, Ram, Jeep and Maserati are all safe for the moment. Whether that remains is a matter of time, but for now, it’s a quick sigh of relief.

Over the next year to year and a half, the mix-up will be undergoing antitrust approval in the countries they operate in and gaining approval from the shareholders. The name of the new company isn’t known yet and as far as any new models in the pipeline, it’s too early to tell and PSA CEO Carlos Tavares has said as much.

The interesting overlap between FCA and PSA brands is that…well, there really isn’t any. Peugeot isn’t in to truck manufacturing, and tends to stick with Euro-friendly smaller vehicles. The biggest vehicle they sell, the Citroën Relay and the Peugeot Boxer, are both based on the Fiat Ducato…which we see as the Ram ProMaster. Otherwise, they have smaller cars, SUVs and crossovers, while we do well with larger cars, sport-utilities and pickup trucks. But that does leave options on the table, such as one of the larger Peugeot sedans making inroads as a potential smaller car for dealers.

The ink is drying and the process is in motion. What do you think the outcome will be?

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10 thoughts on “BangShift Question Of The Day: FCA + PSA, Good Or Bad?

    1. Marc

      I hear ya Crusty!! Though I have a longer stretch to go.. no pension for me.. I’m after Legacy.. Solidarity Brother!! UAW LOCAL 1166 Kokomo, Indiana Casting Division.

  1. Gary

    Funny I was thinking about this earlier this morning. I think it a bad thing, in general. But I’m not into this globalism crap. My project cars will always be Mopars, I guess, since I have enough to last me the rest of my life. But will I ever buy another new or even late model Chrysler product? I’m not so sure. It certainly hasn’t been the same company it once was for decades, regardless of the absolutely awsome vehicles they currently produce. It may be a great thing for certain shareholders and executives. But for the company as a whole, and the car-buying public, I don’t get any warm fuzzies.

    1. Marc

      It’s all good!! It will help us with smaller, more economical vehicles and the technology sharing for going all electric which is the direction FCA and all Automakers are going for.. no worries on the trucks, Hellcats and such.. those are strong sellers and we will continue. UAW Local 1166, Kokomo, Indiana Casting Division

  2. 69rrboy

    Been the biggest Mopar fan all my life but like Gary said, what I consider to be MY company with the exception of a few things was from the first day Walter P opened the doors until the end of 1980. Anything since then has held little to no interest to me. All the things I fiercely back and defend were made over 30 years ago.

    After all the bail outs, mergers, and hostile take overs I take this news like a middle aged woman who just saw her 5th husband walk out the door for the last time. “Yeah well whatever!”.

    “Somebody” will continue to make Jeeps and Ram trucks because it’s a license to print money but the rest of the company will end up in the trash can. And since NONE of that money is coming directly to me I couldn’t care less who that somebody is.

  3. Scott

    “We think Chrysler gets boned….”

    I guess the writer hasnt noticed who builds the baddest and most popular muscle cars of this era?

  4. Marc

    The merger should be a good thing for FCA.. we will be sharing technology on smaller, electric autos… it will also give FCA a broader market to sell our trucks, SUV’s, and Jeeps and our High Performance vehicles in the European Market which translates into higher sales and profits for everyone. It seems like a good venture between the two not to boot will make FCA combined the 4th largest automaker in the world. We employees are confident this will be good and shouldn’t be another Dalmer Deal like preciously. UAW Local 1165 Kokomo, Indiana Casting Division

  5. Henrik

    I for one will just love to see a new peugeot Being sold as the new charger???? I would as a mopar fan just love to own a 5 door Electric crossover pos with a dodge badge on it. Or maybe a new dodge ram as we know them just with a fiat badge and a puddel instead of a ram on the grill. Im sorry but im not a fan of to Many makes of cars coming from one Company. It was hard enough to se my dads face when he realised that the brand new peugeot boxer van he just bought was in fact a fiat. ( we hate fiat in our family ) he was ready to take it back. It wil be fun to see who ford and gm will join with.

  6. CJ Monhan

    One reason FCA has revolving doors on the front of the headquarters; people, products are ever-changing, and not always necessarily for the good. FCA needed this merger to assist in becoming greedier as an auto maker. Aside from the fact that the biggest clencher is the money owed to the government for fuel insufficient vehicles. Unlike Volkswagen debacle, FCA unlike Ford, owes a substantial amount in citations for that meeting government deadlines and standards for fuel-efficient vehicles. Thus, inaccurate advertising of fuel-efficient vehicles, as well as, misrepresentation of their diesel vehicles AKA Rams. Then, FCA gets the bright idea, to change direction with the Jeep brand engine. Particular engine that is in place in all Jeep vehicles is weaker overall to the previous engine of pass Jeep vehicles. With that being said, having weaker engines ie lasting less time, at the dealers more than on the road, brings in more revenue for FCA, correct? Overall, this merger yes, definitely wanted by greedy corporate execs, desired, plain greed for more money to build one of the largest automakers in the world. But let us, remember this is off the backs of many workers which now stretches I crossed an ocean into several different countries. Yes, this merger was why should say is something that is good for FCA because it\’s about money, status and greed. It is not about the auto workers in the factories, it is not about the support staff that makes the executives shine everyday, it is about corporate America and in this case, corporate America in the Auto industry once again being greedy, and building on the backs of the workers, and cubicles, on the line, and then down to the consumer.

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