PSA Refutes Rumors About Not Merging With FCA

28 March 2020 - motor1

PSA Refutes Rumors About Not Merging With FCA

Economic uncertainty grips the world.

The future of what would be the world's fourth-largest automaker isn't in jeopardy, according to PSA Group. The automaker said it's committed to its merger with Fiat Chrysler Automobiles, according to a new report from Automotive News, even as the world's economic outlook darkens with the spreading coronavirus pandemic. The virus has forced automakers to halt production while dealerships have closed their doors.

The two automakers signed a memorandum of understanding back in December, less than two months after the initial announcement when both said there were ongoing discussions about a potential merger. Between the October announcement and December's finalization, we learned the merger would retain the numerous automakers each automotive group owns, putting 13 brands under one corporate roof.

Putting the deal in jeopardy, at least according to some, is the worsening economic outlook automakers – and the world – are facing. With vehicle production halted and dealerships closed, it's difficult for automakers to make money. Part of the deal between the two included paying a special dividend – €5.5 billion ($6.1 billion) – to FCA shareholders. At the same time, PSA would spin-off Faurecia, a French parts supplier, as part of the deal. The optics of either automaker taking government assistance, loans or otherwise, while paying shareholders billions would likely not be well received by taxpayers, according to the report. Both have seen share prices fall since the merger's announcement.

PSA Groupe told the publication it was "inappropriate to speculate" about the merger or how it could change considering the recent – and still developing – events around the world. The company said it's focusing on protecting its employees and the company. FCA declined to comment to Automotive News about the situation. Two potential fees may need to be paid if there are unforeseen hiccups with the merger.

News By Tags

A1A2AbarthACAPAcidentealfa romeoAlfa Romeo GiuliaAlfa Romeo TonaleAlgarveAljustrelAmaranteappleArcos de ValdevezAssociação Automóvel de Portugalaston martinauctionaudiAudi A3Audi A4Audi A6Audi e-tronAudi q8Audi R8Audi Rs4Audi Rs6auto industryAutódromo Internacional do AlgarveAzores RallyeBarcelosBarreiroBejabentleybikebikesBMWBMW 1 SeriesBMW 2 SeriesBMW 3 seriesBMW 4 SeriesBMW 8 seriesBMW M3BMW M4BMW m5BMW X3BMW X5BMW x7bmw z4bombeirosBragaBrasilBrazilBrexitBugattibuying guideCabrioCaminhaCampeonato de Portugal de KartingCampeonato de Portugal de RalicrossCampeonato Nacional de Velocidadecar buying guidecar rentCarlos GhosnCarro elétricocarros usadosCarta de conduçãoCascaisCastelo BrancochevroletchinaChryslercitroenCitroen C3classicclassic carclassicsCoimbraconvertiblecoronavirusCrash Testcrash testsCristiano RonaldoCupraCupra Formentorcustom cardaciaDacia DusterDacia Sanderodieseldiesel scandaldieselgatedrag raceDSDucatielectricEMELemissionsEspanhaEspinhoEstacionamentoestradasEUEuropaeuropeevFafeFaroFCAFederação de Motociclismo de PortugalFerrariFiatFiat 500Fiat 500eFiat 500XFiat PandafordFord FiestaFord FocusFord KugaFord Transitformula 1Formula eFranceFrankfurt Motor ShowGenesisGeneva Motor ShowGermanyGNRGondomarGoogleGovernoGuardaGuimarãeshistoryhondaHonda CivicHonda HR-VhybridHyundaiHyundai i20Hyundai Santa FeHyundai TucsonISVitaliaItalyJaguarjeepJeep CompassJeep GladiatorJeep WranglerkiaKia NiroKia SportageLA Auto ShowLamborghiniLancialand roverLand Rover DefenderLand Rover DiscoveryLeirialexusLisboaLisbonLotusLouléMaçãoMadeiraMaiaMarco de CanavesesMaseratiMatosinhosmatrículasmazdaMazda CX-5Mazda CX-60Mazda MiataMcLarenMercado automóvelmercedesMercedes A-classMercedes S-ClassmetroMGMiguel OliveiraminiMini CooperMini CountrymanMini John Cooper WorksMitsubishiMitsubishi OutlanderMonçãoMontalegreMorganMOTOCROSS E ENDUROmotorcyclemotorsportNew York Auto ShownissanNissan GT-RNissan LeafNissan MicraNissan QashqaiOdemiraoffroadOlhãoOliveira de AzeméisopelOpel AstraOpel CorsaOpel MokkaOvarPalmelaparcómetrosParedesPenafielPeugeotPeugeot 208Peugeot 308Peugeot 5008Peugeot 508Peugeot 508 SWpickuppolicePombalPonta DelgadaPonte de LimaPorschePorsche 911Porsche CayennePorsche MacanPorsche PanameraPorsche TaycanPorsche Taycan Cross TurismoportagensPortimãoPortoPortugalpreçosProdução automóvelPSAPSPradaresRalicrossRamRange RoverRange Rover EvoquerecallrenaultRenault AustralRenault CapturRenault DusterRenault MeganeRenault Zoerent a carreplicarestorationRio MaiorRolls-Roycesafetysafety ratingsSafety testsSamsungSanta Maria da FeiraSantaremSanto TirsoSão João da MadeiraSão MiguelscooterseatSeat CupraSeat LeonSeat TarracoSergio MarchionneSetubalSintraskodasmartSmart ForTwospainspy shotsStellantissubarusupercarssuvsuzukiSuzuki JimnytaxitechnologyteslaTesla Model 3Tokyo Motor ShowtoyotaToyota AygoToyota CorollaToyota HiluxToyota Land Cruisertoyota supraToyota YarisTroféu BetatrucktuninguberukUnited StatesUSAused car buying guideValençaValongovendasVendas de carrosViana do CasteloVieira do MinhoVila do CondeVila Nova de FamalicãoVila Nova de GaiaVila RealVila VerdeViseuvolkswagenVolkswagen GolfVolkswagen ID.4Volkswagen T-RocvolvoVolvo XC40vwVW CaddyVW golfVW PoloVW T-RocYamaha