Dodge Nitro Forum banner

1 - 7 of 7 Posts

·
Super Moderator
Joined
·
23,322 Posts
Discussion Starter #1
Fiat Chrysler confirms talks with Peugeot about possible merger
Tie-up would create one of the world’s biggest car makers

10/30/2019




Italian-American firm Fiat Chrysler has confirmed that it is in talks with French rival Peugeot over a tie-up to create one of the world’s biggest car makers.


The statement did not say whether the talks were aimed at a full merger or a looser alliance. Fiat Chrysler has long been looking for a partner to help shoulder investments in the capital-heavy industry.


Talks this year with another French car maker, Renault, failed over French government concerns over the role of the Japanese partner Nissan. Fiat Chrysler Automobiles was formed in 2014 out of a merger of Italian car maker Fiat and the American company Chrysler, which Fiat brought back from the brink of bankruptcy.

SOURCE
 

·
Super Moderator
Joined
·
23,322 Posts
Discussion Starter #2
Fiat Chrysler makes merger deal with Peugeot's Groupe PSA

Oct. 30, 2019


Fiat Chrysler Automobiles NV and French automaker Peugeot's Groupe PSA have agreed to merge, creating a global automaker seeking to compete in an industry evolving toward autonomy and electrification.

The boards of both companies approved moving ahead with the transaction. The combined company likely would be led by PSA CEO Carlos Tavares, 61, and its board would be chaired by John Elkann, chairman of FCA, according to two sources familiar with the situation. FCA CEO Mike Manley, six years younger than Tavares, likely would become chief operating officer and run its North American operations from Auburn Hills.

The proposed merger comes amid FCA's national contract talks with the United Auto Workers, a quadrennial Detroit rite that is not expected to be impacted by news of the company's second potential transatlantic deal this year. Still, the prospect unnerves John Barbosa of Irish Hills, a 14-year employee at FCA's Dundee Engine Plant. He says the combination worries him after seeing reports of PSA cutting jobs to make profit and using many temporary employees.

"We have our contract that is coming up," Barbosa said, noting the UAW deal with General Motors Co. was "pretty sad" given the closure of three plants and a distribution center. "We are kind of expecting the same thing from Fiat Chrysler, and add PSA group to that mix, that will just make sure that the workers will not continue to get their share."

The combination of FCA, Detroit's No. 3 automaker, and PSA, Europe's second-largest car manufacturer, would create the world’s No. 4 automaker, delivering economies of scale to rival European juggernaut Volkswagen AG and shaking up the greater global auto industry. Combined annual sales of 8.7 million vehicles would rank the combined company ahead of General Motors Co.’s 8.4 million vehicles sold last year.

"In two major markets, the competition will be increased," said Ferdinand Dudenhöffer, a professor of automotive economics of the Center for Automotive Research at the University of Duisburg-Essen in Germany. "That will hurt the Japanese, even the smaller Japanese companies like Honda ... and Toyota a little bit. It puts pressure on Ford, which is weak in Europe."

Added Karl Brauer, executive publisher at Cox Automotive: “Neither FCA nor PSA, independently, are in a position to lead the industry in vehicle sales and product development. But as a united front they are immediately back in the fight to compete for volume, market share and advanced technology with today’s more powerful automakers."

This isn't the first time FCA and PSA explored a full-scale merger. Before the maker of Fiat, Jeep and Ram vehicles last spring entered into talks with Renault SA of France — talks ultimately scuttled by meddling from the French government and opposition from Renault partner Nissan Motor Corp. — FCA and PSA moved deeply into merger talks of their own.

Less than six months later, the automakers now are expected to confirm an agreement as early as Thursday, paving the way for the two companies to launch a series of due diligence talks to further detail areas of cooperation, regional responsibilities and engineering efficiencies.

Fiat Chrysler "confirms there are ongoing discussions aimed at creating one of the world's leading mobility Groups," the automaker said in a statement Wednesday in advance of a scheduled meeting of its directors. "FCA has nothing further to add at this time."

The industrial logic of the deal is expected to trace the outline of FCA's aborted merger with Renault, pooling resources to fund next-generation technology even as powertrain combinations and vehicle architectures are rationalized.

In a statement in May confirming plans to move ahead with the transatlantic merger, FCA and Renault said the "benefits of the proposed transaction are not predicated on plant closures, but would be achieved through more capital efficient investment in common global vehicle platforms, architectures, powertrains and technologies."

Like the proposed FCA-Renault deal, an FCA-PSA tie-up likely would maintain three headquarters to accommodate parochial sensibilities: one in Paris, a second in Auburn Hills and a third in Turin, Italy, home to FCA's precursor, Fiat SpA, and the founding Agnelli family now represented by Elkann. And operational decisions, such as FCA's commitment to build a new Jeep plant in Detroit, would be unaffected, as would U.S. employment.

The 50-50 merger with Renault would have created the third-largest global automaker behind Volkswagen and Toyota Motor Corp. The deal could have leveraged Renault's strengths in Europe and a decade of experience in electrification with Fiat Chrysler's advantages in North America and Latin America. And shares in the parent company would have been traded on exchanges in Paris, Milan and New York.

But in June, Fiat Chrysler revoked its offer to merge with Renault over conditions imposed by the French government, which holds a 15% stake in Renault, and the automaker's Japanese partner, Nissan. Leaders at Fiat Chrysler and Renault, however, have said they remained open to a possible combination.

"In economic terms, Renault would be a better deal to go with," Dudenhöffer said. "But in practical terms, Peugeot could be realized in the short term, and that is important."

During the FCA-Renault talks, French Finance Minister Bruno Le Maire said that there was no need to rush merger discussions, part of a concerted effort by the government to guard against politically potent plant closings and job cuts frequently associated with industrial mergers. But Le Maire's office Wednesday signaled it may have realized combining two profitable automakers like FCA and PSA is better than one.

“Consolidation in the world car industry is necessary and France wants to play its full role,” the Finance Ministry said in a statement Wednesday, according to Bloomberg News. “The two French automakers, with their respective partners, would thus be among the world’s top four.”

PSA is no stranger to the French government's influence. Although the French state's investment agency owns the Renault shares, France's sovereign wealth fund, BPIfrance, is in a three-way tie for the majority shareholder of PSA. BPIfrance owns 12.2% of the company. The other two top shareholders are the Peugeot family and Dongfeng Motor Corp., a state-owned automaker in China.

"While there may be great benefits to partnering," Michelle Krebs, an analyst at Cox Automotive, said, "time will tell if this deal sticks."

Conversations between Fiat Chrysler and PSA began earlier this year, when PSA sent out advisers for a deal to turn the company into a global player, according to Bloomberg. Manley, FCA's CEO, said in March he would look at "any deal that would make Fiat stronger." The company has been working to repair its European business, home to its Fiat namesake.

And PSA has a history of taking American brand businesses on the continent and turning them around: In 1978, it purchased the failing Chrysler Europe and assumed its debt as the U.S. parent firm faced financial troubles. In 2017, when GM was abandoning the European market after decades of losses, the Tavares-led PSA bought the Detroit automaker's Opel and Vauxhall brands for $2.33 billion, creating Europe’s No. 2 automaker after Volkswagen. The brands represented $18.3 billion in revenue in 2018.

Tavares' strength is in restructuring, experts say. The Portuguese-born executive schooled in France honed his craft under Carlos Ghosn, his one-time boss at Renault who formerly headed the Renault-Nissan alliance and now is awaiting trial in Japan for misappropriating Nissan funds.

To turn around Germany-based Opel and Vauxhall, Tavares slimmed the number of platforms, consolidated engineering operations and cut thousands of jobs. He has the potential to be the kind of leader to make a deal between FCA and PSA work, AllianceBernstein Holding LP analyst Max Warburton said in a note.

"In our view the combination of FCA and PSA has more logic than the previously attempted FCA-RNO deal," he wrote, "and has a far greater chance of success."

Before his death last year, Manley's predecessor, the late Sergio Marchionne, repeatedly predicted that global automakers would need to partner in order to survive a changing industry beset with increasingly stringent emissions standards and the steady creep toward autonomous and electric vehicles — going so far as presenting his argument in 2015 in his "Confessions of a Capital Junkie."

Marchionne doubled down on Fiat's deal with Chrysler in 2008. He tried to woo GM and its CEO, Mary Barra, into a blockbuster Detroit merger, but failed. He courted Volkswagen, at least from afar, until its Dieselgate scandal, executive turmoil and the massive costs that followed rendered any kind of partnership unlikely.

"PSA is a big global automaker with a good European foothold and technologies FCA could benefit from," said Akshay Anand, executive analyst for Kelley Blue Book. "FCA has a big imprint in the U.S., a market PSA is trying to get into. On the surface, it makes sense."

In theory, a combined company could consolidate platforms and address excess capacity issues for the aging portfolios of the Fiat, Opel and Vauxhall brands. PSA also brings some innovations in the Autos 2.0 space, such as ride-sharing and electrification — areas in which experts say Fiat Chrysler is lagging, especially in the face of hefty carbon-emission fines in Europe.

"FCA is far behind competition in e-mobility," Jürgen Pieper, automotive senior advisor at Bankhaus Metzler, wrote in an email. "PSA is at least OK."

Meanwhile, PSA plans to re-enter the rich North American retail market after leaving it in 1991 in the midst of a recession. The Peugeot brand would lead the company's introduction into Canada and the United States by 2026.

PSA has made one step into North America: It launched its free-floating ride-share service, Free2Move, last year in Washington, D.C. The service used Chevrolet Cruzes and Equinoxes, though it planned to use Peugeot models in the future.

The merger likely would not provide much support in China, the world's largest auto market. Both entered the market in the late 1980s, only a few years later to fold. Even though the companies have since re-entered the region, that still has left a bad taste in the mouth of Chinese customers, said Michael Dunne, CEO of ZoZo Go LLC, a Chinese electric mobility company based in Hong Kong..

"I see it as an opportunity to turn a new page for both automakers," Dunne said. "The industry is slowing in China. We can see consolidation on the horizon. They could combine their efforts to survive and thrive."

Fiat Chrysler and PSA have had a standing working relationship since 1981 when they opened together their Sevel plant in Italy. In February, the companies extended the cooperation agreement to 2023 and increased production capacity. The Sevel plant makes the Fiat Ducato, Peugeot Boxer and Citroën Jumper large vans as well as additional versions for PSA's Opel and Vauxhall brands.

PSA is present in 160 countries and possesses 16 production sites across the world. It traces its roots to 1810, when the Peugeot company began in the metal industry. It introduced its first gasoline-fueled vehicle in 1890. In 1976, Peugeot merged with Citroën SA, which launched its first vehicle in 1919. The combined PSA Peugeot Citroën became Groupe PSA — Peugeot Society Anonymous — a name that dates to 1966.

In 2018, PSA posted revenue of $82.2 billion. Fiat Chrysler's was $128 billion.

SOURCE
 

·
Super Moderator
Joined
·
23,322 Posts
Discussion Starter #3
Groupe PSA and FCA plan to join forces to build a world leader for a new era in sustainable mobility
Discussions have opened a path to the creation of a new group with global scale and resources owned 50% by Groupe PSA shareholders and 50% by FCA shareholders. In a rapidly changing environment, with new challenges in connected, electrified, shared and autonomous mobility, the combined entity would leverage its strong global R&D footprint and ecosystem to foster innovation and meet these challenges with speed and capital efficiency.
  • The combination would create the 4th largest global OEM in terms of annual unit sales (8.7m vehicles)
  • At its inception, the combined company would realize among the highest margins in the markets where it would operate, based on FCA’s strength in North America and Latin America and Groupe PSA’s in Europe
  • The combination would unite the groups’ respective brand strengths across Luxury, Premium, Mainstream Passenger Car, SUV and Trucks & Light Commercial – making them stronger together
  • The merged entity would bring together the companies’ extensive and growing capabilities in the technologies shaping the new era of sustainable mobility, including electrified powertrain, autonomous driving and digital connectivity
  • Approximately €3.7 billion estimated annual run-rate synergies without any plant closures resulting from the transaction
  • Highly respected combined management team recognised for exceptional value creation and with proven success in previous OEM combinations
  • Dutch parent company Board would have balanced representation and a majority of independent Directors. John Elkann as Chairman and Carlos Tavares as CEO and member of the Board


October 31, 2019 , Rueil-Malmaison and London - IMPORTANT NOTICE

By reading the following release, you further agree to be bound by the following limitations and qualifications:

This communication is for informational purposes only and is not intended to and does not constitute an offer or invitation to exchange or sell or solicitation of an offer to subscribe for or buy, or an invitation to exchange, purchase or subscribe for, any securities, any part of the business or assets described herein, or any other interests or the solicitation of any vote or approval in any jurisdiction in connection with the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. This communication should not be construed in any manner as a recommendation to any reader of this communication.

This communication is not a prospectus, product disclosure statement or other offering document for the purposes of Regulation (EU) 2017/1129 of the European Parliament and of the Council of June 14th 2017, as amended from time to time and as implemented in each member State of the European Economic Area and under French and Dutch law and regulation.

An offer of securities in the United States pursuant to a business combination transaction will only be made, as may be required, through a prospectus which is part of an effective registration statement filed with the US Securities and Exchange Commission (“SEC”). Shareholders of Fiat Chrysler Automobiles N.V. (“FCA”) and Peugeot S.A. who are US persons or are located in the United States are advised to read the registration statement when and if it is declared effective by the US Securities and Exchange Commission because it will contain important information relating to the proposed transaction. You may obtain copies of all documents filed with the SEC regarding the proposed transaction, documents incorporated by reference, and FCA’s SEC filings at the SEC’s website at http://www.sec.gov. In addition, the effective registration statement will be made available for free to shareholders in the United States.

Rueil-Malmaison and London, October 31st 2019


The Supervisory Board of Peugeot S.A. and the Board of Directors of FCA N.V. (“FCA”) (NYSE: FCAU / MTA: FCA) have each unanimously agreed to work towards a full combination of their respective businesses by way of a 50/50 merger. Both boards have given the mandate to their respective teams to finalize the discussions to reach a binding Memorandum of Understanding in the coming weeks.

The plan to combine the Groupe PSA and FCA businesses follows intensive discussions between the senior managements of the two companies. Both share the conviction that there is compelling logic for a bold and decisive move that would create an industry leader with the scale, capabilities and resources to capture successfully the opportunities and manage effectively the challenges of the new era in mobility.

The proposed combination would create the 4th largest global OEM in terms of unit sales (8.7 million vehicles), with combined revenues of nearly €170 billion1 and recurring operating profit of over €11 billion2 on a simple aggregated basis of 2018 results excluding Magneti Marelli and Faurecia. The significant value accretion resulting from the transaction is estimated to be approximately €3.7 billion in annual run-rate synergies derived principally from a more efficient allocation of resources for large-scale investments in vehicle platforms, powertrain and technology and from the enhanced purchasing capability inherent in the combined group’s new scale. These synergy estimates are not based on any plant closures.

It is projected that 80% of the synergies would be achieved after 4 years. The total one-time cost of achieving the synergies is estimated at €2.8 billion.

The shareholders of each company would own 50% of the equity of the newly combined group and would therefore share equally in the benefits arising from the combination. The transaction would be affected by way of a merger under a Dutch parent company and the governance structure of the new company would be balanced between the contributing shareholders, with the majority of the directors being independent. The Board would be composed of 11 members. Five Board members would be nominated by FCA (including John Elkann as Chairman) and five would be nominated by Groupe PSA (including the Senior Independent Director and the Vice Chairman)3. The Chief Executive Officer would be Carlos Tavares for an initial term of five years and he would also be a member of the Board.

Carlos Tavares said: “This convergence brings significant value to all the stakeholders and opens a bright future for the combined entity. I’m pleased with the work already done with Mike and will be very happy to work with him to build a great company together.”

Mike Manley said, "I'm delighted by the opportunity to work with Carlos and his team on this potentially industry-changing combination. We have a long history of successful cooperation with Groupe PSA and I am convinced that together with our great people we can create a world class global mobility company."

The new group’s Dutch-domiciled parent company would be listed on Euronext (Paris), the Borsa Italiana (Milan) and the New York Stock Exchange and would continue to maintain significant presences in the current operating head-office locations in France, Italy and the US.

It is proposed that the by-laws of the new combined company would provide that the loyalty voting program will not operate to grant voting rights to any single shareholder in the Shareholders Meeting exceeding 30%4 of the total votes cast. It is also foreseen that there would be no carry over of existing double voting rights but that new double voting rights would accrue after a three-year holding period after completion of the merger.

A standstill in respect of the shareholdings of EXOR N.V., Bpifrance Participations SA, DFG and the Peugeot Family would apply for a period of 7 years following completion of the merger. EXOR, Bpifrance Participations and the Peugeot Family would be subject to a 3-year lock-up in respect of their shareholdings except that the Peugeot Family would be permitted to increase its shareholding by up to 2.5% during the first 3 years following the closing, only by acquiring shares from Bpifrance Participations and DFG.

Prior to the completion of the transaction, FCA would distribute to its shareholders a special dividend of €5.5 billion, as well as its shareholding in Comau. In addition, prior to completion, Peugeot would distribute to its shareholders its 46% stake in Faurecia. This would enable the combined groups’ shareholders to equally share in the synergies and benefits that would flow from a merger while recognizing the significant value of FCA’s differentiated platform in North America and strong position in Latin America, including its market-leading margins in those regions. It would also reflect the added value that FCA’s higher-end global brands Alfa Romeo and Maserati would bring given their substantial development potential.

The extended portfolio would cover all market segments with iconic brands and strong products based on rationalized platforms and optimization of investments.

The proposal would be submitted to the information and consultation process of the relevant employee bodies, and would be subject to customary closing conditions, including final board approvals of the binding Memorandum of Understanding and agreement on definitive documentation.

1 Represents FCA Net Revenues, excluding Magneti Marelli, and Groupe PSA Revenue excluding Faurecia Revenue to Third Parties.

2 Represents FCA Adjusted EBIT, excluding Magneti Marelli, and Groupe PSA Recurring Operating Income excluding Faurecia

3 Employee representatives would be defined based on legal requirements at all levels

4 No blocking minority in a Dutch entity; all the decisions made by simple majority of votes of quorum>50%

Contacts:

Investor enquiries:

FCA

Joe Veltri
Vice President, Investor Relations
+1 248 576 9257
[email protected]

Groupe PSA
Andrea Bandinelli
Senior Vice President, Investor Relations
+ 33 6 82 58 86 04
[email protected]

Media enquiries:

FCA

Niel Golightly, [email protected], +1 248 933-6285
Shawn Morgan, [email protected], +1 248 512-2692
Andrea Pallard, [email protected], +39 0110030675
Fernao Silveira, [email protected], +55 11 4949-3901
Leonardo Guan, [email protected], +86 21 2218 7896
Lucy McLellan, [email protected], +61 3 8698 0200

Groupe PSA
Pierre Olivier Salmon, [email protected], +33 6 76 86 45 48
Karine Douet, [email protected], +33 6 61 64 03 83

UK/USA
Sard Verbinnen & Co
Jon Aarons, Robert Rendine
+44 20 7467 1050/+1 212 687 8080
[email protected]

Italy
Community, Strategic Communications Advisers
Auro Palomba, Marco Rubino
+39 02 89404231
[email protected]

France
Image 7
Anne-France Malrieu, Flore Larger
+33 1 53 70 74 95/+33 1 53 70 74 90
[email protected]

About FCA
Fiat Chrysler Automobiles (FCA) is a global automaker that designs, engineers, manufactures and sells vehicles in a portfolio of exciting brands, including Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep®, Lancia, Ram and Maserati. It also sells parts and services under the Mopar name and operates in the components and production systems sectors under the Comau and Teksid brands. FCA employs nearly 200,000 people around the globe. For more information regarding FCA, please visit www.fcagroup.com.

About Groupe PSA
Groupe PSA designs unique automotive experiences and delivers mobility solutions to meet all customer expectations. The Group, which employs 210,000 people, has five car brands, Peugeot, Citroën, DS, Opel and Vauxhall and provides a wide array of mobility and smart services under the Free2Move brand. Its ‘Push to Pass’ strategic plan represents a first step towards the achievement of the Group’s vision to be “a global carmaker with cutting-edge efficiency and a leading mobility provider sustaining lifetime customer relationships”. An early innovator in the field of autonomous and connected cars, Groupe PSA is also involved in financing activities through Banque PSA Finance and in automotive equipment via Faurecia.
Media library: medialibrary.groupe-psa.com
Twitter: @GroupePSA_EN

FCA FORWARD-LOOKING STATEMENTS
This communication contains forward-looking statements. These statements are based on the FCA’s current expectations and projections about future events and, by their nature, are subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future and, as such, undue reliance should not be placed on them. Actual results may differ materially from those expressed in such statements as a result of a variety of factors, including: volatility and deterioration of capital and financial markets, changes in commodity prices, changes in general economic conditions, economic growth and other changes in business conditions, weather, floods, earthquakes or other natural disasters, changes in government regulation, production difficulties, including capacity and supply constraints, uncertainties as to whether the proposed business combination will be agreed or consummated or as to the timing thereof as well as the realization of the anticipated synergies therefrom, and many other risks and uncertainties, most of which are outside of the FCA’s control.

FCA and its affiliates, directors, advisors, employees and representatives, expressly disclaim any liability whatsoever for such forward-looking statements.

Forward-looking statements speak only as of the date they are made. FCA does not assume any obligation to update any public information or forward-looking statement in this communication to reflect new information, future events or circumstances or for any other reason after the date of this communication, except as may be required by applicable laws, and any opinion expressed in this communication is subject to change without notice. FCA shall not have any obligation to correct any inaccuracies therein or omissions therefrom which may become apparent.

This communication includes some information on specific transaction proposals that remain subject to discussions and certain approvals and other conditions.

GROUPE PSA FORWARD-LOOKING STATEMENTS
This communication contains forward-looking statements with respect to the financial condition, results of operations and business of Groupe PSA, including the expected effects of any proposed transaction.

Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which are beyond the control of Groupe PSA, including, among other things, the possibility that the expected synergies and value creation from the transaction will not be realized, or will not be realized within the expected time period; the risk that the businesses will not be integrated successfully; the possibility that the transaction will not receive the necessary approvals, that the expected timing of such approvals will be delayed or will require actions that adversely impact the benefits expected to realized in the transaction; and the possibility that the transaction does not close. Neither Groupe PSA, nor any of its respective directors, officers, employees and advisors nor any other person is therefore in a position to make any representation as to the accuracy of the forward-looking statements included in this communication, such as economic projections and predictions or their impact on the financial condition, credit rating or financial profile of Groupe PSA, or the market for the shares of Groupe PSA. The actual performance, the success and the development over time of the business activities of Groupe PSA may differ materially from the performance, the success and the development over time expressed in or implied from the forward-looking statements contained in this communication.

Groupe PSA does not assume any obligation to update any public information or forward-looking statement in this communication to reflect new information, future events or circumstances or for any other reason after the date of this communication, except as may be required by applicable laws, and any opinion expressed in this communication is subject to change without notice.

Groupe PSA shall not have any obligation to correct any inaccuracies herein or omissions herefrom which may become apparent.




Contact Information
Please login to view contact details.

Niel Golightly

Shawn Morgan


Attached
Press release (pdf)
 

·
Super Moderator
Joined
·
23,322 Posts
Discussion Starter #4
Fiat Chrysler and Peugeot S.A. Agree to $48 Billion Merger



The merger will result in the world’s fourth-largest automaker.

Oct 31, 2019



It’s official: after rumblings of a merger, Fiat Chrysler and Peugeot owner PSA are making it happen.


The deal calls for an equal split, with 50 percent ownership of the new group for each existing company. In 2018 FCA and PSA combined produced 8.7 million vehicles globally, enough to put them in a solid fourth place, behind Volkswagen AG, Toyota, and Renault-Nissan-Mitsubishi.


This level of scale is necessary, say the automakers, to address the industry’s moves into electric vehicles as well as autonomous tech. FCA expects savings of roughly $4 billion per year thanks to the merger, plus zero plant closures.


FCA—which includes Jeep, Chrysler, Dodge, Ram, Alfa Romeo and Fiat—has a strong presence in the North American market. It’s an arena Peugeot has vowed to re-enter in the next few years, which makes the partnership all the more important. Meanwhile the lion-badged brand is second in sales in Europe, selling alongside partners Citroën and Vauxhall/Opel.


PSA is no stranger to mergers, having just picked up Vauxhall/Opel from General Motors in 2017.


The new mega-company will be headquartered in the Netherlands, where Fiat Chrysler has its current HQ. John Elkann, current FCA chairman, will take the same position at the new company. The board would consist of 11 members: five from each existing company, plus current PSA CEO Carlos Tavares. Tavares will also keep his title post-merger, as CEO for at least five years.


Both companies expect to finalize the deal in the coming weeks.


Tavares had this to say on the merger: “This convergence brings significant value to all the stakeholders and opens a bright future for the combined entity. I’m pleased with the work already done with Mike and will be very happy to work with him to build a great company together.”

 

·
Super Moderator
Joined
·
23,322 Posts
Discussion Starter #5
FCA Statement in Response to GM Lawsuit


November 20, 2019 , Auburn Hills, Mich. - We are astonished by this filing, both its content and its timing. We can only assume this was intended to disrupt our proposed merger with PSA as well as our ongoing negotiations with the UAW. We intend to vigorously defend against this meritless lawsuit and pursue all legal remedies in response to it.
 

·
Super Moderator
Joined
·
23,322 Posts
Discussion Starter #6
GM sues Fiat Chrysler alleging bribery scheme in union negotiations
Nov 20 2019


  • General Motors accused Fiat Chrysler in a lawsuit filed Wednesday of undermining its collective bargaining negotiations with the United Autoworkers Union.
  • GM said the alleged bribery scheme was authorized at the highest levels of Fiat Chrysler, including the company’s late CEO, Sergio Marchionne.
  • Earlier this month, federal prosecutors charged retired UAW Vice President and former GM board member Joseph Ashton with fraud and money laundering, as part of its corruption probe into the union.
General Motors filed a federal racketeering lawsuit against Fiat Chrysler and its former executives on Wednesday, accusing the automaker of bribing United Auto Workers officials to receive more favorable terms in labor negotiations.
“This lawsuit is intended to hold FCA accountable for the harm its actions have caused our company and to ensure a level playing field going forward,” Craig Glidden, GM’s general counsel, said in a statement.

GM said that Fiat Chrysler “corrupted” collective bargaining agreements between GM and UAW in 2009, 2011 and 2015 by paying millions in dollars in bribes.
“FCA was the clear sponsor of pervasive wrongdoing, paying millions of dollars in bribes to obtain benefits, concessions, and advantages in the negotiation, implementation, and administration of labor agreements over time,” the company said in a statement.
GM said the alleged bribery scheme was authorized at the highest levels of Fiat Chrysler, including the company’s late CEO Sergio Marchionne. The automaker is seeking damages to recoup losses resulting from what it claims was a “systematic and near decade-long conspiracy” to undermine GM’s negotiations with UAW officials.
Fiat Chrysler called the lawsuit “meritless” and said it plans to vigorously defend itself.
“We are astonished by this filing, both its content and its timing. We can only assume this was intended to disrupt our proposed merger with PSA as well as our negotiations with the UAW,” the Italian-American automaker said in a statement. The company last month announced a tentative agreement to merge with Peugeot maker PSA Group, creating the fourth-largest automaker in the world.

GM’s general counsel told reporters on a conference call Wednesday that the lawsuit has no bearing on the ongoing merger discussions between Fiat Chrysler and PSA Group. Glidden also said that the lawsuit won’t affect existing collective bargaining agreements, and that there are no current allegations against Fiat Chrysler CEO Michael Manley.
Shares of GM slipped 3% following the news, while Fiat Chrysler shares dropped nearly 4% during midday trading.

SOURCE
 

·
Super Moderator
Joined
·
23,322 Posts
Discussion Starter #7
FCA: General Motors’ Lawsuit Without Merit


November 20, 2019 , London -

Fiat Chrysler Automobiles (“FCA” NYSE: FCAU /MTA: FCA) confirms that it will defend itself vigorously against the lawsuit filed yesterday by General Motors. FCA believes General Motors’ claims are nothing more than a meritless attempt to divert attention from that company’s own challenges.

This astonishing ploy comes at a time when FCA is proving itself to be an ever more formidable competitor that continues to create significant value for all its stakeholders through the successful implementation of its long-term strategy. This includes the proposed merger with PSA, which itself completed the successful turnaround of the European businesses it acquired not long ago from General Motors.

FCA will deal with this extraordinary attempt at distraction through the appropriate channels and will stay focused on continuing to deliver record results while realizing an exciting vision for the future of the industry. FCA is confident that it will prevail in defending itself against these claims in court and will also pursue all available remedies in response to this groundless lawsuit.
 
1 - 7 of 7 Posts
Top