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 > FCA To Merge With PSA

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ShinerBock

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Posted: 10/31/19 06:38am Link  |  Quote  |  Print  |  Notify Moderator

spoon059 wrote:

Bonjour.

What I always find interesting is why you need to "merge" with another company. The new owner is simply going to get rid of failing lines, streamline process and find a way to turn a profit. You don't need a merger for that, you need competent management for that. Save the time, effort and money of a merger and hire a CEO that will do what needs to be done.


A merger generally happens when a company wants to enter into new markets or expand their network, but does not have the capital to do it. So they generally will find another company to merge with to combine assets to enter these markets or expand their network. It is beneficial to both. This is why FCA has been looking for another company to merge with for a while now, especially one that already has a presence in upcoming markets such as China.

The Fiat and Chrysler merger was another example. Fiat was wanting to expand their presence in the US for a long time. Chrysler also wanted to expand into more European markets. So they merged and the Chrysler side became FCA USA and the the Fiat side became FCA Italy. The previous CEO came from Fiat while the current CEO is from Chrysler.

I will add that this merger would have probably never happened if the Obama administration would have never allowed the US treasury to sell the Chrysler shares it held to Fiat. If they would have kept them just a few more years, Chrysler would have been able to pay it back and then some due to the success from Ram and Jeep had in the following years. Although, if that didn't happen, then we would not have things such as the Ecodiesel or ZF 8-speed and some of the failing models and brands would probably still be here so there were some pluses to the merger for the Chrysler side.

* This post was edited 10/31/19 07:10am by ShinerBock *

colliehauler

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Posted: 10/31/19 07:20am Link  |  Quote  |  Print  |  Notify Moderator

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.

FishOnOne

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Posted: 10/31/19 08:01am Link  |  Quote  |  Print  |  Notify Moderator

thomasmnile wrote:

Quite aware of what a merger is, thank you. I also know that every time Chrysler was acquired/merged by Daimler, Cerberus, Fiat, the man in the moon, it was because Chrysler's continued existence depended on it. Is this even a merger of 'equals'? Equally distressed or flush with cash?


There is never a merger of equals. The one that holds the most cash holds all the cards on the table.


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ShinerBock

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Posted: 10/31/19 08:16am Link  |  Quote  |  Print  |  Notify Moderator

FishOnOne wrote:

thomasmnile wrote:

Quite aware of what a merger is, thank you. I also know that every time Chrysler was acquired/merged by Daimler, Cerberus, Fiat, the man in the moon, it was because Chrysler's continued existence depended on it. Is this even a merger of 'equals'? Equally distressed or flush with cash?


There is never a merger of equals. The one that holds the most cash holds all the cards on the table.


Actually if you look at the data and numbers, a PSA and FCA merger would be a merger of equals. Each side would own half the shares. They will also have an equal split of board representations similar to the the Fiat/Chrysler merger did.

PSA And Fiat Chrysler Unveil Merger Of Equals

* This post was edited 10/31/19 08:22am by ShinerBock *

thomasmnile

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Posted: 10/31/19 11:03am Link  |  Quote  |  Print  |  Notify Moderator

The Detroit Free Press is calling it a merger of equals because the executives say it is. Might create 4th largest automaker in the world but I'm waiting for the talk of corporate 'synergies' READ: Layoffs to start.

ShinerBock

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Posted: 10/31/19 12:08pm Link  |  Quote  |  Print  |  Notify Moderator

thomasmnile wrote:

The Detroit Free Press is calling it a merger of equals because the executives say it is. Might create 4th largest automaker in the world but I'm waiting for the talk of corporate 'synergies' READ: Layoffs to start.


So what data do you have that says it is not a merger of two equals because all of the data such as equally split shares and equal representation on the board says equal merger....... or are you just saying that because it is your opinion and want it to be true?

An unequal merger would mean one side would have more shares and more board representation which is not the case here. An acquisition would mean one company has all shares and board representation.

* This post was edited 10/31/19 12:34pm by ShinerBock *

womps

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Posted: 10/31/19 01:17pm Link  |  Quote  |  Print  |  Notify Moderator

Just announced that it’s a done deal.

ShinerBock

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Posted: 10/31/19 01:25pm Link  |  Quote  |  Print  |  Notify Moderator

FCA, Peugeot maker PSA Groupe plan 50-50 merger

"It's official: Fiat Chrysler Automobiles and PSA Groupe intend to merge operations.

The companies early Thursday announced their plans for a 50-50 joint shareholder-owned entity that they said would save $4.11 billion (3.7 billion euro) annually without plant closures. The companies would have combined revenues of $189.06 billion (170 billion euro) with profits of more than $12.23 billion (11 billion euro) based on 2018 figures."


thomasmnile

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Posted: 10/31/19 02:49pm Link  |  Quote  |  Print  |  Notify Moderator

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.

ShinerBock

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Posted: 10/31/19 03:26pm Link  |  Quote  |  Print  |  Notify Moderator

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.


I just wanted to know if I was dealing with statements based on facts or statement based on biased opinion. One I take in consideration and with value, the other I take with a grain of salt.

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