Fiat, Peugot to Merge, Creating $50 Billion Auto Giant


This episode of Business Wars daily is brought to you by sent pro online from pitney bowes shipping and mailing from your desk is never been simpler than with sent pro online from Pitney beaus try it free for thirty days and get a free ten pound scale when you visit PBA DOT com slash B W daily in from wondering I'm David Brown and this is business wars daily happy Monday France the auto industry is being up ended Fiat and Peugeot already two of the world's largest automakers are tying the knot the merged business will become the fourth largest vehicle manufacturer on the globe worth close to fifty billion dollars the first three in case you were wondering our Toyota Renault Nissan and Volkswagen. It's been a long long road for for Fiat Chrysler. The Italian American company has unsuccessfully pursued several mergers it attempted to merge with Renault back in June a tie up that would have made it the third largest automaker on the planet but France which owns a fifteen percent stake in Renault didn't support that merger neither did Japan's Nissan which is an alliance with Renault I know ultimately Fiat Chrysler pulled out of the deal that's when Peugeot at one time suter stepped back yet according to the Wall Street Journal Fiat favored averred Renault is a company that would provide better geographic synergies but there are only so many global vehicle behemoths to choose from and automakers especially in Europe Europe are facing enormous challenges both from climate change and tariffs changes that auto execs feel they can better overcome from places of strength this radio comes at a time when every major car companies developing or already selling electric vehicles the pressure is on in Europe as emission standards on the continent grow tighter automakers especially Fiat Chrysler are struggling to meet them according to the Wall Street Journal Fiat Chrysler is facing big fines for failing to meet those standards theoretically this merger would help both companies develop lower emissions vehicles including electric cars for sale on the continent and in the United States both companies are also also looking to join forces to tackle the expensive and difficult development self driving vehicles carmakers need billions of dollars to develop driverless vehicles one factor prompting auto execs to combine their resources for its part Peugeot would also get access to American drivers a market abandoned almost thirty years ago Peugeot had already planned to reintroduce the French vehicle brand here a merger with Fiat Chrysler would give it access to millions of potential customers car buyers this could at least theoretically find Peugeot's for sale at jeep and Ram dealerships in the foreseeable future Fiat Chrysler is also facing headwinds in the US auto sales it's here are expected to cool and tariffs are increasing more and more of its competitors are developing electric and hybrid vehicles but Fiat Chrysler has yet to join the crowd of course the merger could get stymied one of several challenging issues a Chinese car maker owns about twelve percent Peugeot and that Chinese stake could present a stumbling block to American regulators observers say clearly when automakers of this size come together there's nothing simple about it and there's nothing simple about today's transatlantic auto marketplace either to run a fifty billion dollar company bring together several different corporate cultures and expand even further globally really we'll take Bo leadership finesse and speed for Fiat Chrysler and Peugeot the road ahead is anything but straight straight from wondering this his business awards day hey if you like our show rights review on Apple podcasts or your favorite podcast APP it really helps us out a lot and we read every single one thanks for listening. I'm David Brown back with you tomorrow. This episode is brought to you by send pro online from Pitney Bowes Shipping and mailing from your desk has never been simpler simpler than with send pro online from Pitney bowes with simple online is just click send and save for as low as four dollars ninety nine cents that's right four dollars ninety ninety nine cents a month send envelopes flats packages right from your PC and you're back to business in no time try it for free for thirty days and get a free ten pounds scale but only when you visit P._B._A. dot com slash B

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