admin PSA and Fiat Chrysler are all set to get a $38 billion merger approval from EU. This is mainly for the purpose of meeting the dual challenge posed by the industry: cleaner vehicles and the pandemic that we all face.
If they do get a green signal from the EU, it would formalise the creation of Stellanis which would be a car making group that would have the potential of getting very huge profits by selling Ram pickup trucks as well as Jeep SUVs to all the United States drivers in order to fund the expensive development of zero-emission vehicles. Sale would also be prevalent in the markets of China and Europe.
This all share merger was announced late last year. It would unite a number of brands like Fiat, Jeep, Dodge, Ram and Maserati with Peugeot, Opel and DS. This would lead to major cost cuts almost of 5 billion euros that estimates to $6 billion without having to close or shut down any of the factories.
The companies will also allow all their dealers to engage with the rivals in order to repair certain parts. In order to diminish and put to rest the anti- trust issues that EU has, PSA has also offered to help and strengthen Toyota Motor Corp of Japan. PSA has a van joint venture already going on with Toyota in accordance to which the production of Toyota vans has been ramped up and at the same time they are being sold at a price that is extremely close to the production cost itself.
Although with the coming of the pandemic, the challenge to build electrical cars has only worsened, the companies did not feel the need to have to argue that in order for the merger to take place.
It was only last month that FCA and PSA had re-structured the terms of their earlier agreement in order to cut more costs and looked at saving more and more given the current scenario of a pandemic.
This merger is almost through and just requires one final approval of the EU which it shall in all probabilities receive, both the companies involved in the merger however have refused to comment on the same.
Magazine 
