Fiat Chrysler in merger with PSA
Fiat Chrysler is negotiating a merger with PSA, the owner of Peugeot after a similar merger plan with Renault fell through last year.
In the US$50Bn deal, John Elkann, Chairman of Fiat Chrysler could take over the helm at the new company while the current CEO of PSA, Carlos Tavares would take over as the Executive President of the new company according to information from The Wall Street Journal.
The French group PSA had already announced its plans to invest up to €25 million in a factory at Mangualde to produce a new car model that will produce less CO2. The model is set to be launched in 2023.
According to the US newspaper the method that is currently being studied is for a merger whereby the current shareholders of the two companies will receive the same amount of shares in the new car company that will be created.
But other options are also on the table since negotiations between the two companies are still underway.
On announcement of the merger shares in Fiat Chrysler Automobiles soared by 7.60% on the New York Stock Exchange.
In Portugal, the PSA group owns a light vehicle car production factory in Mangualde. At the start of October, the company began mass production on a Opel Combo.
In July the General Director of the Mangualde factory managed by the PSA group, José Maria Castro said that it would invest up to €25 million in the factory in the Viseu district for the car that began production this month.
He said that the investment would be used to “improve the factory and the manpower” and added that they would not be increasing the number of workers but rather employing more skilled ones.