FCA-PSA Merger Still Set to Move Forward

Since the initial announcement back in October of last year, the Fiat Chrysler-Peugeot 50/50 merger has been ironed out and prepped for completion. The original goal in mind was to combine two steady forces along with their staff and revenue to make what will be the fourth largest automaker. Big plans of new technology, electrification, and unique designs are all still in the works. Even despite all the changes due to Covid-19, the details of the deal haven’t changed, at least not yet. 

Although FCA’s chairman wants everyone to believe that nothing will change financially concerning the deal, there are some speculations on the distribution of profits to shareholders. The automotive industry has been in need of cash flow for months and the strong push forward for the original deal is raising some eyebrows. FCA has no intentions on backing out of previously agreed upon loans and ensures that funds will help their business operations in Italy.

Rome is being nudged in the direction of extending a ban on dividend payments for those who have an existing deadline and state backing. Then again, terms could be re-negotiated post Covid-19 to appease all parties involved. The timeline for when the dividend is due and when the deal is set to close are pretty close, so now would be the time to be realistic, tying up any loose ends on the deal. 

Pandemic or not, Fiat Chrysler and PSA group haven’t let anything get in the way of their merger. They are still on track to finish what they started and on their predicted time of 12-15 months following the announcement. The future is bright from their point of view, and they are eager to start producing fresh designs that consumers want and need. Whether or not the deal is truly “set in stone” is still TBD given the circumstances around us. We will see if this 50/50 deal is sealed over the next 12 months.