Would-Be Fourth-Largest Automaker Faces Another Hurdle

Industry News / Comments

Will this merger ever happen?

Despite being announced months ago, the proposed $50 billion 50-50 merger between Fiat Chrysler and France's PSA Group is still not a done deal. As the world begins to emerge from lockdowns and economies start up again, the two global automakers continue to inch forward towards the finish line, only now they're facing another problem.

Reuters claims EU antitrust regulators are taking issue about what would be the world's fourth-largest automaker's high market share in the small vans segment. Although small vans, such as delivery vans, are not quite as popular in the US as they are elsewhere, such as Europe, regulators are certainly making life difficult for both companies at the moment.

FCA and PSA have exactly two days, specifically this Wednesday, to reassure the commission's doubts or to offer concessions. If they fail to do either, then the proposed deal will be delayed even longer because of a required four-month-long investigation.

2017-2020 Alfa Romeo Giulia Quadrifoglio Front View Alfa Romeo
Rear View Driving Alfa Romeo
Front Angle View Alfa Romeo

Neither automaker was available to comment but the future of the merger could potentially be decided this week. The longer both sides are forced to wait, the greater potential for something further to go wrong that could unravel the deal. Add to that the global economic uncertainty these days and the pressure cooker gets turned up several notches. Neither automaker wants this proposed merger to fall through for numerous reasons.

FCA is strong in North America and Latin America while PSA is a major presence in Europe. Therefore, the proposed automaker would have a greater geographical footprint.

Why The 2021 Cadillac Escalade Is The Ultimate Fullsize SUV
Why The 2021 Cadillac Escalade Is The Ultimate Fullsize SUV
Greatest Shelby Super Snake Models Ever Made
Greatest Shelby Super Snake Models Ever Made
2018-2020 Jeep Wrangler Unlimited Front-End View CarBuzz
2018-2020 Jeep Wrangler Front Angle View Jeep
2019-2020 Maserati Levante Trofeo Front Angle View Maserati

Also, the companies have common ground with platforms, engine families, electric vehicle platforms, autonomous technologies, and, of course, vans. Production of current and hot-selling vehicles like the Jeep Wrangler and Gladiator will remain in Toledo, Ohio, but it's entirely possible future vehicles will be manufactured outside of the US and imported.

Above all, Fiat, Jeep, Dodge, Chrysler, Ram, Maserati, Alfa Romeo, Peugeot, Opel, and Citroen will all be under a single umbrella. But unless EU regulators get the reassurances they're demanding, none of this will happen.

2015-2020 Chrysler 300 Sedan Front View Chrysler
2017-2020 FIAT 124 Spider Abarth Front Three-Quarter Left Side View Fiat
2019-2020 Dodge Challenger SRT Hellcat Rear View Driving Dodge
2019-2020 Dodge Challenger SRT Hellcat Front View Dodge
Source Credits: Reuters

Join The Discussion