FCA To Merge With PSA

FishOnOne wrote:
Again in reality there never is equals... It may be reported that how it's going to be structured but it won't last.

Is this fact or opinion. If fact, then please show me the data you have that you know it won't last

FishOnOne wrote:
Here's a copy/paste: The companies would combine under a Dutch parent company, with a board of 11 members, five nominated by FCA and five by PSA. Carlos Tavares, CEO of PSA Groupe, would be CEO of the new company; FCA Chairman John Elkann would retain his role.

I suspect the CEO will fill the 11th spot or someone at the parent company, and if this report is correct with Carlos Tavares being the new company CEO it looks like PSA will eventually dominate the company.

In this scenario, FCA actually have more leverage because they have more board representation with the 11 member being John Elkann from FCA as chairman of the board. The board can hire or fire a CEO while the CEO cannot touch a board member. The board can also override the CEO if they have enough votes to do so. So FCA will have 6 votes on the board to PSA's 5. The CEO is from PSA who does not have a vote which means FCA can out vote PSA on anything they wish to. So saying that PSA will dominate the company is highly unlikely unless PSA gets one of the FCA board members to vote against FCA.

RobertRyan wrote:
Not the only European incursion into the North American Automotive Scene recently
Navistar showed Scania Light Quarry Trucks to be used in the Canadian Mining Industry
Navistar is relying a fair bit on Scania expertise.
Just to remind you Scania and MAN do have an agenda to buy Navistar outright when Global conditions improve.

And Scania and MAN are part of Volkswagen Group.

Not the only European incursion into the North American Automotive Scene recently
Navistar showed Scania Light Quarry Trucks to be used in the Canadian Mining Industry
Navistar is relying a fair bit on Scania expertise.
Just to remind you Scania and MAN do have an agenda to buy Navistar outright when Global conditions improve.

philh wrote:
I don't know much about PSA, but I do know that FCA is way behind in product development of BEV and hybrids. They have been milking the high horsepower revenue without much new development. Jeep is a valuable commodity. Trucks are doing well. Cars not so much.

That is one reason they want this " marriage" PSA is much more advanced in BEV tech and oddly diesel technology

wilber1 wrote:

colliehauler wrote:

Me Again wrote:
La Conner, a town 70 miles North of Seattle had a LeCar police car in it's day, which allowed crooks to get away on foot or in an auto.

I remember them, they had only 3 lug nuts holding the wheel on. The person that owned it called it Lecrap. Where I worked another person owned a Peugeot that everyone called a Push-it because of it's reluctance to start.

I had a Peugeot 504 wagon. Under powered but solid and very comfortable. Never had a problem starting it.

Most US people can only remember the distant past with Pug and Citroen, times have rapidly changed

thomasmnile wrote:
I don't have a clue Shiner, I don't work for either company. From reading, I do know that since Lee Iacoca Chrysler was on the block for some arrangement to assure their survival. This merger is no different and it's not just about entree' into new markets. Matter of fact, I also saw a story earlier this year in the Free Press that FCA was considering ending the Chrysler product line entirely.

So no, all these machinations don't sound like FCA is dealing from a position of strength. My opinion.....and I'm entitled to it.

Your right it is a survival strategy in a rapidly changing world. Sergio was desperate to merge with another partner to allow FCA to survive and grow

colliehauler wrote:

Me Again wrote:
La Conner, a town 70 miles North of Seattle had a LeCar police car in it's day, which allowed crooks to get away on foot or in an auto.

I remember them, they had only 3 lug nuts holding the wheel on. The person that owned it called it Lecrap. Where I worked another person owned a Peugeot that everyone called a Push-it because of it's reluctance to start.

I had a Peugeot 504 wagon. Under powered but solid and very comfortable. Never had a problem starting it.

I don't know much about PSA, but I do know that FCA is way behind in product development of BEV and hybrids. They have been milking the high horsepower revenue without much new development. Jeep is a valuable commodity. Trucks are doing well. Cars not so much.

philh wrote:
FCA is in huge trouble. This is not a merger of equals.

You are right,Carlos Tavares the CEO of this merged entity is extremely good. He turned around GM's " basket case" Opel within a year( says a lot about GM management)
It will be the 4th largest Global vehicie maker in front of Ford and GM.
VW, Toyota, Renault/ Nissan/ Alliance then PSA/ FCA

Me Again wrote:
La Conner, a town 70 miles North of Seattle had a LeCar police car in it's day, which allowed crooks to get away on foot or in an auto.

LeCar was a Renault.