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Old 15-04-2010   #1
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Fiat to merge with PSA?

I read over at that Sergio Marchionne, the CEO of both the Fiat Group and Chrysler Group, suggested that Fiat will merge with PSA soon. According to him, a merge between Fiat and the second largest auto group in Europe would be a "marriage in heaven".

I am definitely looking forward to such a merger. Could you imagine a car that has the style and speed of an Alfa Romeo combined with the comfort given by a Hydractive suspension from Citroen? Now that would be one hell of a car.
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Old 16-04-2010   #2
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Re: Fiat to merge with PSA?

He said that "some time ago" according to the article. He also has said that with Chrysler, Fiat is now big enough that it doesn't need to merge with anyone else.

I don't see a Fiat/PSA merger any time soon. The Italian and French governments, people, and workers wouldn't like it. I could see them co-operating on shared platforms though.

Do Citroen still use their hydraulic suspension system?
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Old 17-04-2010   #3
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Re: Fiat to merge with PSA?

I think the merger is a good idea. The small car market is booming, but if you see the cost structure and the price of the entry level hatchback across the globe, they are very different.

In India, the entry-level car is the Tata Nano which costs $2,500, but in a country like Romania, I think it is much higher. Similarly, in Russia, the entry point is higher than in Romania. Though these markets are classified as 'emerging' they are very contrasting.

So Fiat tying up with other car manufacturers could help in penetrate new countries with the help of brands that have a better understanding of those regions.
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Last edited by notjustshrawan; 17-04-2010 at 05:51.
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