27 Oct 20
News

EC will approve FCA, PSA merger

The European Commission will approve the merger between FCA and PSA, reports Reuters. The new group will be the world’s fourth largest carmaker.

In response to EC concerns that the combined FCA and PSA marketshare on the LCV market would be too dominant, the new group has offered to increase production capacity for Toyota at its Sevelnord joint venture in France, where Peugeot Expert and Citroën Jumpy vans are built alongside the Toyota ProAce.

The new group will operate under the name of Stellantis. It will unite FCA brands like Fiat, Jeep, Dodge and Ram and PSA brands Peugeot, Citroën, DS and Opel.

Stellantis is not looking at closing factories but the new group is targeting annual cost cuts of 5 billion euros.

The merger should be finalised by the end of Q1 2021.

Image copyright: PSA Group

Authored by: Benjamin Uyttebroeck