Fiat Chrysler’s Big Move
Fiat Chrysler Automobiles is moving forward with its merger with French auto company PSA Group. According to an internal document detailed by the Wall Street Journal, about 50 people are working to finalize a 50/50 deal.
Despite dealing with a federal racketeering lawsuit filed by competitor General Motors, the FCA and PSA Group (which makes Peugeot) are still continuing with the merger.
In a joint statement, the boards of Fiat Chrysler, Peugeot, and PSA agreed towards a binding agreement in the coming weeks. The reason behind this is that the agreement would create the fourth-largest automaker with a combined market value of about $50 billion.
This merge would create a regional force to be reckoned with, challenging Volkswagen AG. The collaboration would bring together the Italian billionaire Agnelli family and the French Peugeot family as the act of merging sweeps through an industry trying to finance major transformation.
Last week in a message obtained by The Journal, FCA and PSA Group informed their employees that the two sides were working toward a memorandum of understanding. The message defined a memorandum of understanding as “the formal document that signals the willingness of both companies to work together to create a 50/50 merger.”
Doug Ostermann, FCA executive, and Oliver Bourges, PSA executive are leading the respective negotiating teams. The deal is expected to be settled by the end of 2020.
According to The Journal, a daily newspaper in West Virginia, Unions representing PSA employees have signaled support for the deal.
Saturday, The United Auto Workers and FCA reached an unsettled agreement on a new four-year contract, which includes a total of $9 billion in investments but still needs final consent from workers.
Due to a matter which started at FCA, involving bribery and embezzlement, an ongoing investigation might leave the merge somewhat affected. Many workers at the company have become quite cynical due to the union’s leadership since the scandal became public in 2017.
Union President Gary Jones, whose home was raided by federal agents, resigned in November, leaving Vice President Roby Gamble in charge.
According to a union spokesperson, on a unanimous decision, Gamble was confirmed by the UAW’s International Executive Board. Prior to this, Gamble spent 12 years as regional director at the union before being elected to vice president. Additionally, he was commissioned to lead the union’s Ford Department just last year.
Upon recent weeks, Gamble has vowed to move swiftly in order to restore credibility to the union, which represents more than 400,000 members. He plans on doing this by implementing ethics and other reforms. “It was an honor to complete my career and serve the members in this great union,” said Gamble. He also made reference to the difficult circumstances that led to his appointment.
It worth noting that Jones has not been charged.
A Brighter Perspective
On a lighter note, Miami Lakes Automall currently has some deals on Chrylser vehicles, more specifically the 2020 Chrysler Pacifica Touring L Plus. Its priced below KBB Fair Purchase Price! It comes in a Steel Metallic color and is a 9-Speed 948TE Automatic. It’s a 4D passenger van that’s perfect for a family. Feel free to contact our team for availability and specials!