DETROIT – The boards of Fiat Chrysler Automobiles and PSA Peugeot on Wednesday signed a binding merger deal creating the world’s fourth-largest auto company.
Carlos Tavares will become the new CEO.
ORIGINAL STORY: Fiat Chrysler, Peugeot sign deal for 50-50 merger
The new company’s name is currently unknown.
Unlike past mergers, the FCA-PSA merger is expected to be uneventful with no job cuts or plant closings.
“Fiat doesn’t make any money, Maserati doesn’t make any money, Alfa Romeo doesn’t make any money," said Autoline analyst John McElroy. "Chrysler makes the money. Pugeot is not going to want to kill the golden goose.”
PSA assembled Jeep, Ram, Chrysler, Dodge, Fiat, Alfa Romeo, Pugeot, Citroën, Vauxhall and Open under one roof.
“This combination of PSA and FCA, they’re going to be bigger than GM, bigger than Ford,". "Just to put that into perspective.”
FCA CEO Mike Manley already has plans he couldn’t implement under FCA alone, like a mid size Ram pick up like the Ford Ranger or Chevrolet Colorado.
Local 4′s business editor Rod Meloni believes another partner will be added to the company in the near future.
“If you put PSA and FCA together they don’t have a very big presence in China,” Meloni said. "That’s a weakness they’re going to have to address.”