no review of the merger with FCA


ANSWER TO A SHAREHOLDER – Carlos Tavares, CEO of PSA, officially denied that there is any intention to review the terms of the agreement fusion with FCA due to the economic crisis due to the coronavirus pandemic. An article by Automotive News where the number one of the French group, during the annual shareholders’ meeting of PSA, reiterated its no to a reference shareholder, Phtrust, who was asking him to review the terms of the agreement due to the recession of the industry global automotive.

THE TERMS ARE THOSE – For Tavares, the agreement with Fiat Chrysler has never been of fundamental importance for accelerating optimization and cost savings live industrial. A useless concern also because FCA has just received the ok for a € 6.3 billion loan supported by the Italian government, while the French group’s balance sheets are currently holding up well to the sudden economic collapse. Tavares also added that serious professionals are required: PSA has signed a balanced and satisfactory agreement for both parties. And in a difficult moment like this it would not be correct or even appropriate to change the cards on the table.

IT WILL BRING GREAT SAVINGS – During the meeting, Tavares added that the agreement will bring great results long-term benefits: in the next ten years and perhaps even more, these synergies will translate into enormous advantages for the two groups. Within the fourth year, Tavares always says, these synergies will allow a net profit of 3.7 billion euros, a sum that will largely derive from the savings due to the use of common platforms.

THE EU IS NOT A PROBLEM – Tavares added that 25 teams, representing 500 PSA managers, are working on the merger with FCA, while minimizing the consequences of possible EU antitrust measures in the light commercial vehicle sector. It is not a problem, he says, also because at least 10 of the 20 files submitted by the antitrust authority have already been approved in the EU.

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