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You can find the current article at its original source at https://www.theguardian.com/business/2019/oct/30/peugeot-owner-in-merger-talks-with-fiat-chrysler
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| Version 1 | Version 2 |
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| Peugeot owner in merger talks with Fiat Chrysler | Peugeot owner in merger talks with Fiat Chrysler |
| (about 1 hour later) | |
| The French owner of the Peugeot and Vauxhall brands is in talks with Fiat Chrysler Automobiles (FCA) pursuing a merger that would create one of the world’s biggest carmakers. | The French owner of the Peugeot and Vauxhall brands is in talks with Fiat Chrysler Automobiles (FCA) pursuing a merger that would create one of the world’s biggest carmakers. |
| PSA Group on Wednesday confirmed the existence of the talks, which come months after a failed merger attempt between FCA and PSA’s French rival Renault. | |
| FCA has long pursued greater consolidation in the car industry, with leaders of the Italian-American carmaker past and present keen to pool resources. Carmakers across the world are grappling with one of the biggest and most expensive upheavals in the industry’s history as they move away from fossil fuels and towards battery electric vehicles and autonomous technology. | FCA has long pursued greater consolidation in the car industry, with leaders of the Italian-American carmaker past and present keen to pool resources. Carmakers across the world are grappling with one of the biggest and most expensive upheavals in the industry’s history as they move away from fossil fuels and towards battery electric vehicles and autonomous technology. |
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| Shares in Fiat Chrysler surged 10% in Milan on Wednesday morning after the Wall Street Journal reported that talks were under way. Shares in PSA rose by 5%, while shares in Renault fell. | Shares in Fiat Chrysler surged 10% in Milan on Wednesday morning after the Wall Street Journal reported that talks were under way. Shares in PSA rose by 5%, while shares in Renault fell. |
| In a brief statement, PSA Group said: “PSA Group confirms that discussions are in progress with the aim of creating one of the world’s principal automotive groups.” | In a brief statement, PSA Group said: “PSA Group confirms that discussions are in progress with the aim of creating one of the world’s principal automotive groups.” |
| A deal between PSA and FCA would still face obstacles, however. The talks between FCA and Renault fell through in June, with the carmakers blaming the intervention of the French government, Renault’s largest shareholder. | A deal between PSA and FCA would still face obstacles, however. The talks between FCA and Renault fell through in June, with the carmakers blaming the intervention of the French government, Renault’s largest shareholder. |
| Peugeot’s chief executive, Carlos Tavares, has been open about PSA’s willingness to pursue merger opportunities if they made sense for shareholders. In April, Tavares said he would consider buying Britain’s largest carmaker, Jaguar Land Rover, but its Indian owner, Tata, said the company was not for sale. | |
| Tavares, known for his turnarounds of PSA and the Opel/Vauxhall business bought from General Motors, would likely apply his “cost discipline” at a combined PSA/FCA, according to Brian Studioso, an automotive analyst at Creditsights, a debt ratings agency. | Tavares, known for his turnarounds of PSA and the Opel/Vauxhall business bought from General Motors, would likely apply his “cost discipline” at a combined PSA/FCA, according to Brian Studioso, an automotive analyst at Creditsights, a debt ratings agency. |
| “European auto [manufacturer] consolidation is often more of a cost-reducing exercise than a revenue-enhancing one, and jobs will inevitably be on the line, or at the very least called into question,” Studioso wrote. | “European auto [manufacturer] consolidation is often more of a cost-reducing exercise than a revenue-enhancing one, and jobs will inevitably be on the line, or at the very least called into question,” Studioso wrote. |
| A Peugeot-Fiat deal could have an impact on British workers at Vauxhall’s factory in Ellesmere Port, Cheshire. PSA issued a stark warning in June that the future of the plant was dependent on a good Brexit deal and Tavares has said the company could switch to a plant in southern Europe to build its Astra cars. | A Peugeot-Fiat deal could have an impact on British workers at Vauxhall’s factory in Ellesmere Port, Cheshire. PSA issued a stark warning in June that the future of the plant was dependent on a good Brexit deal and Tavares has said the company could switch to a plant in southern Europe to build its Astra cars. |
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