Steel Markets
December 19, 2019
Merger of Fiat Chrysler and Peugeot Forms Fourth Largest Automaker
Written by Sandy Williams
FCA and PSA Peugeot signed a binding agreement on Dec. 18 providing for a 50/50 merger to create the fourth largest global auto manufacturer by volume and third largest by revenue.
The combined company will have annual unit sales of 8.7 million vehicles and expected revenue of nearly $189 billion, based on 2018 results. The merger will expand the group’s geographic balance with 46 percent of revenues derived from Europe and 43 percent from North America. The group expects to have positive free cash flow in the first year and annual synergies of $4.1 billion without any plant closures. Eighty percent of savings are expected to be achieved by year four.
