- Title: Fiat Chrysler and Peugeot owner agree $50 bln merger deal
- Date: 18th December 2019
- Summary: RUESSELSHEIM, GERMANY (FILE - NOVEMBER 9, 2017) (REUTERS) PSA CEO CARLOS TAVARES JOINING OPEL CEO MICHAEL LOHSCHELLER ON STAGE, VARIOUS OF THEM POSING FOR CAMERAS
- Embargoed: 1st January 2020 09:57
- Keywords: DAX FiatChrysler Frankfurt Opel PSA Peugeot m&a merger shares stocks
- Location: FRANKFURT & RUESSELSHEIM, GERMANY / UNDISCLOSED LOCATION
- City: FRANKFURT & RUESSELSHEIM, GERMANY / UNDISCLOSED LOCATION
- Country: Germany
- Reuters ID: LVA003BAI57RH
- Aspect Ratio: 16:9
- Story Text: Fiat Chrysler and Peugeot maker PSA have reached a binding agreement over their roughly $50 billion merger that will reshape the global car industry.
France's PSA and Italian-American Fiat Chrysler (FCA), which are yet to decide on a name for their new company, will now start work on delivering their pledge to cut costs by 3.7 billion euros ($4.1 billion) a year without closing factories.
That will be all the harder with politicians and strong labour unions in both France and Italy worried about job losses at a combined business that will employ around 400,000 people.
In Frankfurt, car industry analyst Juergen Pieper of Metzler bank said that while PSA was "looking for size, size, size," Fiat Chrysler did not have a choice since Fiat's technology is "out of date."
Pieper said that the merged company would have to take a close look at Fiat's Italian factories where "a lot of clean-up work is required."
Asked about the future of PSA's German unit Opel, Pieper said the brand from Ruesselsheim outside Frankfurt stood out as "one of the bright lights," destined for a bright future.
(Production: Hakan Erdem, Frank Simon, Michele Sani)
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