Following the initial announcement from October 31, Fiat Chrysler Automobiles and PSA Group have just officially signed the 50:50 merger deal, which effectively creates the world’s fourth-largest car manufacturer with projected annual sales of around 8.7 million cars.
The new manufacturer’s projected revenues will be nearly $190 billion (€170 billion) per year with a recurring operating profit of over $12.2 billion (€11 billion) and an operating profit margin of 6.6 percent. All these numbers are calculated based on a simple aggregated basis of 2018 results.
In terms of consolidations, the newly-formed automaker will have more than two-thirds of its mainstream models based on just two platforms, with approximately three million cars per year on each of the small platform and the compact/mid-size platform.
As previously announced, the board of directors will be comprised of 11 members – five coming from FCA and its reference shareholder and five nominated by Groupe PSA and its reference shareholders. PSA’s current CEO Carlos Tavares will be Chief Executive Officer for an initial term of five years and will also be a member of the director’s board.
“Our merger is a huge opportunity to take a stronger position in the auto industry as we seek to master the transition to a world of clean, safe and sustainable mobility and to provide our customers with world-class products, technology, and services,” Tavares commented.
“This is a union of two companies with incredible brands and a skilled and dedicated workforce. Both have faced the toughest of times and have emerged as agile, smart, formidable competitors. Our people share a common trait – they see challenges as opportunities to be embraced and the path to making us better at what we do,” Mike Manley, FCA CEO, added.