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Psa Peugeot Citroen3/12/2021
FCAs portfolio includes Chrysler, Dodge, Jeep, Ram, Fiat, Alfa Romeo, and Maserati, and PSA Group is the parent company of French brands Peugeot, Citron, and DS as well as former GM units Opel and Vauxhall.This merger is not so much about finding new markets for products as letting FCA share in the more sophisticated technology PSA controls, including electrified drivetrains and advanced front-wheel-drive platforms.Mergers between large auto companies may excite analysts and business journalists, but our first reaction is more selfish: Whats in it for us Now that its confirmed Fiat Chrysler and PSA are throwing in together to create what will likely be the worlds fourth-biggest automakerbuilding 8.7 million vehicles a yearwere more interested in the specifics of future model plans.Instead, perhaps inevitably, the evaluation of a deal like this tends to be more about stockholder value, future earnings, and potential for cost-saving synergies than about the product.
And thats a shame. ![]() Psa Peugeot Citroen Plus Abarth AndAs well as Fiat and the little that remains of Chrysler, FCA has Dodge, Ram, Jeep, Alfa Romeo, and Maserati in its portfolio, plus Abarth and the (dead outside Italy) Lancia. PSA has Peugeot and Citron plus the upmarket DS brand, as well as Opel and Vauxhall, which were acquired from GM in 2017. Thats a huge portfolio with both significant overlap but also geographic anomaliesthe most obvious being that apart from the Buick Regal, which is built in Germany, no PSA products are currently sold in the United States. Dont be surprised if the target date of 2026 for Peugeot sales to start gets pulled closer, which counts as a reason to be cheerful. Jeep models are already sold in Europe, but FCA gave up on European sales of both Dodge and Chrysler some time ago; its fair to say there will be no more demand for cars like the 300C on the far side of the Atlantic than there was when the plug was pulled. ![]() All European automakers are facing the challenge of reducing average fuel consumption and CO2 emissions, with huge fines for those that exceed per-car averages. PSA has already made big moves toward hitting these ultra-tough targets; FCA, much less so. The merger will mean that future models from the Fiat side of the family will be able to share PSAs technology and electrified drivetrains, with further cost-saving synergies from what will likely be merged production. That means that smaller next-gen models from Fiat, Alfa, and even Jeep could be switched to PSAs considerably more advanced architecture, similar to the way the Volkswagen Groups MQB platform underpins dozens of different models. ![]() Earlier this year PSA was reportedly discussing a merger with Jaguar Land Rover, and while the marriage to FCA may well have killed that idea, even a technical alliance with the beleaguered British maker could offer a way of sharing costs for larger cars. PSA CEO Carlos Tavares turned around the groups fortunes with aggressive cost cutting, and he may well see some low-hanging fruit in the combined companys multitude of nameplates and territories. In Europe, little but habit justifies the continued existence of the Vauxhall brand in the U.K.it is used for right-hand-drive versions of Opels. Closer to home, we would not be surprised if Fiats slumping sales see the brand withdrawn from the U.S., or if Maseratis recently announced plans for several new models get brutally pruned. With global pressures on traditional automakers set to continue growing, the PSAFCA merger could also be the start of a wave of amalgamations. You may be able to find the same content in another format, or you may be able to find more information, at their web site. You may be able to find more information about this and similar content at piano.io.
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