Ongoing talks between FCA and Peugeot for a $ 50 billion merger

Talks are ongoing between FCA and Peugeot for the creation of a 50 billion dollar 'giant'. The Wall Street Journal reported. According to a source close to the dossier, quoted by the American newspaper, a possibility that the two parties are discussing is a merger of equal parts.

In the new automotive giant, the managing director of Peugeot, Carlos Tavares, would become the CEO while John Elkann, president of the FCA, would assume the same role in the new society.

According to the source, the interviews are still 'fluid' and other options could be considered. At this stage there would be no guarantee that a final agreement will be reached.

"We do not comment on market rumors". So at AFP, a spokesman for the French automaker responded to the first rumors about the dialogue between Fca and Psa Group, the owner of the Peugeot and Citroen brands. A "No comment" also arrived from Fca.

The reaction of the unions

"I am not aware of these contacts: one thing is certain, the fact that FCA is looking for international partners to carry out joint ventures is positive. The important thing is that FCA continues to value Italian factories and production". Thus the leader of the Uilm, Rocco Palombella, comments the rumors on the merger. "Above all – he adds – the partners to whom it is addressed must have an advantage from the point of view of the electric which is the added value that Fca needs".

"Any alliance must be useful to grow in Asian markets, to have technologies and resources for the transition to electricity". The general secretary of the FIM CISL states this to the Agi, Marco Bentivogli. "It is difficult to comment on the rumors but it seems there is something more, it is not the first time that Elkann and Tavares are talking. On Wall Street, FCA immediately rises with + 8%. Both the FCA group and Psa need alliances. blatant setback for the French government that has missed the opportunity to create a European car champion with Fca and Renault ".

"The important thing is to protect employment in Italy". This is the comment of Michele De Palma, member of the Fiom national secretariat for the car. "Since we are talking about an issue that concerns two multinationals and even two countries, it is essential that we do not review what happened with the Renault affair, but that the government and the Presidency of the Council protect the research and development capacity we have in our Country because the whole world of Italian components depends on this, in a moment of great transformation of the automotive sector We have a common interest in our country and it is linked to the fact that there is an installed capacity to produce 1, 5 million vehicles in Italy: any hypothesis of agreement or merger or joint venture must start from full employment and production of Italian plants ".

The previous attempt with Renault

Those between Italy and France are relationships of love and hate. At least in terms of financial transactions between 'cousin' companies. The wedding trial between Fca and Psa-Peugeot (at the second attempt) that would give life to a colossus of the auto industry of 50 billion dollars is just another episode in the often tumultuous history of the relations between the Italian and the French economic world.

As it was last June, when the negotiations between Renault and its own FCA broke to form an automotive giant. That time, Fiat Chrysler took responsibility for the decision to the French government, a 15% shareholder, based on the fact that the "political conditions" were not met in France to complete such an operation.

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