The proposed merger between Peugeot owner PSA Group and Fiat Chrysler would retain all car brands if a deal goes ahead, according to Carlos Tavares, chief executive of PSA Group.
In a TV interview with France’s BFM Business, the would-be chief executive of the combined group said the group would have a ‘significant amount’ of brands, but they complement each other geographically, and share a common characteristic of “fabulous history”.
He said: “If this deal were to be concluded, I do not see any need to scrap any brands because they all have their history and they all have their strengths.”
Some 14 marques will fall under the newly-formed group: Abarth, Alfa Romeo, Chrysler, Citroen, Dodge, DS, Fiat, Ferrari, Jeep, Lancel, Maserati, Opel, Peugeot, and Vauxhall.
Speaking of the deal, Tavares said the companies are prepared to make concessions to meet regulatory requirements, but does not believe that will be necessary. Talks are progressing well, but Tavares does not expect anything to be finalised in less than a year.
News of the merger sparked concern for UK unions, who described the deal as “deeply unsettling for Vauxhall’s UK workforce”.
Tavares responded to concerns around job safety by stating that the group could achieve billions of euros in annual cost savings without closing factories – but when quizzed on job cuts, he pointed to wider issues affecting the car market as a whole.
The combined group would create the fourth largest OEM in terms of unit sales (8.7m vehicles) globally, with a joint revenue of almost €170bn (£146bn). The companies predict that 80% of synergies would be achieved after four years, with a total one-time cost of €2.8bn (£2.42bn) expected to complete the merger.
“Both share the conviction that there is compelling logic for a bold and decisive move that would create an industry leader with the scale, capabilities and resources to capture successfully the opportunities and manage effectively the challenges of the new era in mobility,” FCA and PSA said in a statement.