Monday, December 15, 2008

Report : Fiat & PSA/Peugeot-Citroen set to Merge !

According to Reuters, PSA/Peugeot-Citroen are looking into the possibility of merging with Fiat. Both automakers are looking forward for merger because of the economic downturn of each company. The news comes just days after Fiat's CEO, Sergio Marchionne, stated that the company would need to find another automotive partner to ensure the company's survival in light of the recent economic downturn.

The issue have reached so high-up, that both France and Italy leaders are considering to offer aid packages to their respective home-town automakers, so a merger may be seen as another way of ensuring their future viability.

No official statements have been made by any of the parties involved, but meetings are scheduled between Italian PM Silvio Berlusconi and FIAT controlling shareholder chairman John Elkann. However, the two companies already share technology on several small vans and commercial vehicles. So analysts are looking forward for this merger. And if it happens, the Fiat/Peugeot-Citroen would possibly be the 4th largest auto manufacturer, behind Toyota, GM, and Ford.

Stay tuned for more news as it becomes available.

Source : [Reuters]

No comments:

Advertise with us