If the merger of PSA and Fiat Chrysler Automobiles is completed as expected, there are no plans to eliminate any brands that now belong to the two companies.
PSA CEO Carlos Tavares, the architect of PSA’s turnaround who is in line to take the operational helm in the merged company, said in a TV interview during the weekend that the companies complemented each other well geographically and in terms of technology and brands.
“As of today, I don’t see any need to scrap any of the brands if the deal came to pass. They all have their history and their strengths,” Tavares said in the interview, according to Reuters.
Tavares said the brands that would come under the combined group’s umbrella – PSA’s five passenger car labels include Citroen, Opel and Vauxhall, while FCA has nine, including Alfa Romeo, Maserati and Jeep – were all likely to survive. Some of the FCA brands such as Chrysler and Dodge have seemed to be on the verge of extinction for years but have managed to survive.
In this regard, Tavares appears to have adopted the philosophy of the late Sergio Marchionne, who served as FCA’s CEO up until last summer. Marchionne was reluctant to dump brands, although he was quick to change their positioning and product strategy.
FCA derives 66% of its revenue from North America compared with only 5.7% for PSA, Europe remains the main revenue driver for PSA, which will have the largest market share in European market.
“There’s no doubt it’s a very good deal for both parties. It’s a win-win,” Tavares told France’s BFM Business, in his first interview since the French and Italian companies announced plans to create the world’s fourth-largest auto maker last week.
FCA Chairman John Elkann, who would chair the combined group, said on Friday at an event in Turin, Italy, that the 50-50 merger would help the Italian carmaker “seize great opportunities.”
The deal would allow both companies pool resources to meet new emissions rules and investments in electric and self-driving vehicles, as well as counter a broader downturn in car makers, is still at an early stage.
The plans call for PSA and Fiat to reach a binding outline in the coming weeks, but both companies face questions about potential job losses in Europe, as well as scrutiny about whether the transaction favors one party more than the other.
The merger will also require approval from antitrust authorities.