PSA chief says merger negotiations with FCA still not possible image

According to chief executive officer Carlos Tavares, any possibility for a merger with another global automaker would only become viable for the second largest European automaker, PSA Peugeot Citroen after its recovery strategy would be completed.

The chief executive officer of the ailing automaker, which last year needed a 3 billion euros capital infusion to survive and thus sold matching 14 percent stakes to China’s Dongfeng and the French government, has not moved to dismiss speculations of a possible tie-up with another global powerhouse – merely postponing them until the company’s financial health is recovered. The top executive discussed the matter with a newspaper after reports in the media speculated about a possible partnership with the seventh-largest automaker in the world, Fiat Chrysler Automobiles NV. “Sergio Marchionne is welcome every time he wants to speak to us but for us it’s a little bit early now,” commented Tavares for Italy’s Corriere della Sera. “We need to finish our cure and recover our good health.”

The reports were also fueled by the fact that Fiat Chrysler chief executive officer Sergioo Marchionne announced he was already mulling various merger and acquisition opportunities. MainFirst, an equity research firm, already presented how a possible FCA – PSA merger would turn out. In their view, the two global powerhouses could form a new entity – named Peugeot Chrysler Fiat Automobiles – with Marchionne serving as chairman and Tavares becoming the chief executive officer, reported recently French newspaper Les Echos. FCA was not long ago also linked to a possible tie-up with VW AG in order to form a new carmaker that would surge past Japan’s Toyota to assume global leadership.

Via Automotive News Europe