Fiat & Peugeot-Citroen Merging?

Fiat, Peugeot, Citroen logo

Whoa, what? Are they serious? The news out of Europe is that Fiat and Peugeot/Citroen are thinking about merging? Most of the merger talk has been all in the US, mainly about who is going to marry Chrysler, but this one has come out of nowhere.

Fiat’s CEO, Sergio Marchionne, said that ” … the company would need to find another automotive partner to ensure the company’s survival in light of the recent economic downturn.” Hm, OK, that’s showing some foresight on his part, and also let’s you know just how deep in this mess we’re all in.

It seems that things are far enough along that political leaders in both France and Italy have held discussions on the matter. This, of course would be a necessary step, since both the Italian and French governments are part owners of Fiat and PSA (the conglomerate that contains Peugeot-Citroen).

The marriage isn’t without precedent, since the companies have worked together in the past such as the recent Peugeot Boxer, Citroën Jumper and Fiat Ducato vans. Also, if the merger takes place, the resulting company would be the fourth largest automaker in the world, with an output rivaling Volkswagen and Renault-Nissan.

Source: World Car Fans via Edmunds



Filed Under: Car NewsCitroenFiatPeugeot


  • PETER

    the French government doesnot have any financial connection with the PSA group. however it does still retainabout 15% in Renault, which it nationalised after the war.

    as for Fiat, my understanding is, that there is no government involment. Origionally the Italian G'vnmt controlled Alfa Romero, which was perputually bankrupt, but unloaded it to FIAT sometime ago.

    while there is some co-operation between these two companies, ie light commericals.PSA has strongly indicated that it wishes to remain alone, after the disasterious aquisation of Chrysler Europe [another basket case], which almost sent it down. Then at the behest of the French government the control of Citroen, which took a decade or so to turn around.

    What with the current fiscal support of both French auto manufacturerres to survive this current down turn, one would question why either would want to take on the burden of a struggling auto manufacturer, the likes of GM or Chrysler ; which is desd in the water-and for years- why did Daimler bail out?]

    So, PSA, while co-operating with the likes of , Ford Europe [ diesel engines] Mitsubishi [ Four wheel drives] Toyota, BMW and joint ventures in China & Latin America , PSA's indicated policy is no aquisitions./

    FIAT [cars], has been struggling for decades and only recently got a few products that are salable.There could be some benifits for PSA in a co-operative manner.Primarly, it would appear, the company is sound, being run for generations, by a conserviate French commerical family.