Auto-merge of the year: PSA and FCA merge

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Does this mean that the era of unification is coming and the brands popular in Russia will now differ only in price?

Photo: Stephane Mahe / Reuters

<! – Location: <верх страницы>-> French group PSA and Italian-American concern FCA come together, and the fourth largest holding in the world will appear on the market. In the PSA group – Peugeot, Citroen, Opel, Vauxhall, Dongfeng. In the Italian-American FCA, in addition to Fiat and Chrysler, there are also Alfa Romeo, Dodge, Jeep, Maserati. After merging in size, the new alliance will be second only to Toyota, Volkswagen and Renault-Nissan.

According to Vedomosti, the synergy effect will produce over 3.5 billion euros per year without closing plants. The transaction will be completed no earlier than in a year and a half. The plans are ambitious: to sell more than 8.5 million cars a year around the world, combining access to the markets of the USA, Europe and Asia.

For the next five years, the new company will be led by a car racing fan and PSA CEO Carlos Tavares, who is very fussy in terms of finance. In less than two years, he removed the group from the list of unprofitable debtors to the number of profitable producers. Tavares is also known for saving even coffee and water at shareholders meetings.

<! – Location: <верх страницы>-> Of course, the unification of automobile brands will lead to a certain unification, to the creation of a common platform. But this does not mean that the cars will differ only in the shape of the headlights and the dashboard, notes auto expert Igor Morzharetto.

Igor MorzharettoIgor Morzharetto auto expert

Automakers will exchange ideas, technologies, nodes. Chrysler has the best all-wheel drive competencies in the world that it has already passed to Fiat. Now they will appear at Peugeot and Citroen along with access to customers from the United States. In return, Chrysler will gain successful experience in creating commercial vehicles and markets in India and China.
The merger will affect the prices of new products. Indeed, the concern optimizes the costs of technology, production and sale of automobiles, said Dmitry Chumakov, CEO of Vector Market Research.

Dmitry Chumakov CEO of Vector Market Research

By the way, in the PSA line of cars, before, there were different models with similar characteristics and similar in appearance, for example Citroen Berlingo and Peugeot Partner. The largest player, the Volkswagen group, has some models of Volkswagen, Skoda, Seat and Audi from the category of "find ten differences." Same story with Hyundai and Kia.

Experts say that today, similarity is a consequence not only of the merger of automobile concerns. Not the last role is played by the aerodynamics-related economy, safety standards – and the personnel who move from company to company.

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