Going around, the Peugeot Citroen Group (hereinafter referred to as PSA) and the Fiat Chrysler Group (hereinafter referred to as FCA) finally came together.
On October 31, both the PSA Supervisory Board and the FCA Board of Directors agreed to establish a 50:50 joint venture and strive to achieve a full merger of their businesses. As part of the merger, FCA will pay a special dividend of 5 billion euros, and PSA will sell shares in auto parts supplier Faurecia. With the approval of the merger plan of the two groups, a new company with an annual sales volume of 8.7 million units will also be born, and the new company will become the world's fourth largest auto company after Volkswagen, Toyota and Renault-Nissan. The FCA official said that after the merger, the two groups will be united in the brand advantages of luxury cars, mainstream passenger cars, SUVs, trucks and light commercial vehicles. At the beginning of the establishment, the combined new company will be able to achieve the highest profit margin in the market by virtue of the strength of FCA in the North American and Latin American markets and the strength of PSA in the European market. It is estimated that the synergy between the two groups is about 3.7 billion euros, mainly from more efficient resource allocation for large-scale investment in automotive platforms, power systems and technologies, and stronger purchasing power of new companies after the merger.
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