FCA + PSA = Massive Job Losses

FCA PSA Merger – Capacity – Courtesy of and Copyright LMC Automotive all rights reserved

Ken Zino of AutoInformed.com on FCA PSA Merger - Over Capacity

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The Stellantis name will be used exclusively at the Group level, as a Corporate brand. The next step in the process will be the unveiling of a logo that with the name will become the corporate brand identity. The names and the logos of the Stellantis Group’s basic brands will remain unchanged. What actually happens to the brands is an entirely different matter.

For enthusiasts as well as workers there are other threats. How about a spin-off FCA’s expensive low-return Alfa Romeo/Maserati operations? Simple math here: It would provide funds for the new FCA-PSA group while improving its utilization rate.

The proposed combination has the capability to be an industry leader with “the management, capabilities, resources and scale to successfully capitalize on the opportunities presented by the new era in sustainable mobility.” More than two-thirds of run rate volumes will be concentrated on 2 platforms, with approximately 3 million cars per year on each of the small platform and the compact/mid-size platform.

The exorbitantly expensive world of developing clean vehicles is on view at FCA-PSA. The business case is simply put as a way to spread costs as a consolidation would result in FCA-PSA group emerging as the fourth-largest Global Automaker. It could compete with the current Global Big Three – Volkswagen Group, Toyota, and Renault-Nissan-Mitsubishi.

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