How Groupe PSA and Fiat Chrysler Automobiles merge depends on the recovery of the corona dip. That says PSA CEO Carlos Tavares.
The merger of Groupe PSA and Fiat Chrysler is still not complete. Not only are both parties still waiting for approval after an investigation by the European Commission, but the financial relations may also need to be reviewed. Carlos Tavares (left on the photo) explains that the corona crisis creates additional uncertainty. According to the PSA CEO, this can of course have a significant impact on the book value of both groups and therefore also have a major influence on how things are distributed.
In an interview with Bloomberg explains the 61-year-old: “It is still too early to discuss this with each other, because we do not yet see a good degree of recovery in both FCA and PSA. At the end of this year, after the recovery, we will see what the potential financial position. ” Chances are that PSA will look better than FCA in that respect. PSA managed to make a profit in the first half of 2020, despite hard blows to turnover due to the corona crisis. Fiat Chrysler has meanwhile taken out a multi-billion dollar loan from the Italian government. The half-year figures of that group are not yet known at the time of writing.
Once both groups merge, the whole story is renamed Stellantis. That will be a mega group with fifteen car brands under it. It shoots up to fourth place in the ranking of the largest car groups in the world. Tavares will be at the helm as top man and the company will be registered in the Netherlands. A formality, of course. The headquarters will remain in France, Italy and the US.