FCA-PSA merger: the numbers of the French group

PSA is one of the main groups in the automotive sector in Europe (in terms of sales volume it is second only to the giant Volkswagen) and could set up a new entity together with FCA able to play a leading role both in Europe and in North America with excellent numbers also in South America, the Middle East and Africa and with the ambition of being able to join forces to attempt an expansion in Asia.

PSA: in 2018 it sold 3.9 million cars worldwide

From a commercial point of view, PSA can count on around 3.9 million units sold worldwide each year (result achieved in 2018). A substantial portion of the French group's operations is linked to European market where last year PSA sold a total of 3.1 million units and in 2019 it has already reached 1.9 million units with Peugeot which, with its 728 thousand units delivered, records higher volumes than the entire FCA group put together

PSA can count on a good turnover in Middle East and Africa, with about 290 thousand units sold last year. Good data also in South America where in 2018 the French group delivered approximately 175 thousand units. In China (with JV Dongfeng Peugeot-Citroen), after a sharp decline in recent years that brought sales in 2018 to touch 260,000 units (but the first quarter of 2019 ended with a decline of -60%), PSA has started a restructuring project that aims to achieve of the target of 400 thousand units sold in 2025.

As for the financial results, after 9 months of 2019, PSA achieved revenues of almost 54 billion euros with a decrease of -0.2% compared to data for the same period last year. Revenues for the automotive division amounted to 42 billion euros (-0.7%) while Faurecia, a company that deals with components, recorded revenues of 13 billion euros with an increase of + 1.2%. The units sold worldwide by PSA during the first 9 months of 2019 were 2.57 million, with a drop of -10.6%. In Europe, as noted above, the group has already sold 1.9 million units, recording a result in line with last year's figures.

The main shareholders include the French State and the Chinese Dongfeng Motor

As far as PSA's shareholding is concerned, on the other hand, the French group has a very particular structure in which the French State, through Bpi France, plays an important role (even if not at the same level as Renault). The family Peugeot, the Chinese giant Dongfeng Motor and it French state they can count on one 12.23% stake of PSA shares each but with different voting rights. Peugeot and Dongfeng Motor have, in fact, 19.5% of the voting rights while the French State stops at 9.75%. It should be noted that the group's employees have a 1.92% stake with 2.56% of voting rights.

Last August, rumors had suggested a possible departure from Dongfeng Motor. The rumors, unconfirmed, highlighted how the Chinese company was evaluating the sale of its share of PSA with a view to enhancing its participation. Dongfeng Motor, according to some American news agencies, would have made contact with some consulting companies. At the moment, there is no information regarding the opinion of the Chinese house on the negotiation with FCA.