Fiat CEO Intends to Strike Merger Deal with Peugeot with 12-14 Months
Fiat Chrysler Cars CEO Michael Manley stated Wednesday merger discussions with Peugeot owner PSA to form the world’s #4 auto manufacturer are progressing well, and he hopes to have a deal struck within 12-14 months.
Speaking to on the sidelines of an industry meeting, he stated he would not expect any major barriers that could delay a final contract.
His comments come a month after the two car manufacturers agreed on a binding deal to integrate forces in a deal worth around $50 billion in response to retardation in global demand and mounting costs of making cleaner automobiles amid tighter emissions regulations.
Manley’s timeline for completing the agreement by early 2021 is according to an estimation made by the businesses in December.
FCA and Peugeot are now stepping into the details of how the merger deal will work, together with choosing which car platforms — the technological foundations of a vehicle — will match which products in a mixed company.
Because clients in different areas still favor vastly different vehicles, there is room for a number of platforms in a combined group, Manley stated.
“That international platform is an elusive beast,” he added. “This idea of a massive international platform in my thoughts is almost a fantasy; however, that doesn’t mean to say we’re not going to deliver significant volume.”