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FCA/PSA Merger Is A Hydra Headed Monster

The just announced 50/50 merger of bi-continental Fiat Chrysler Corporation and the sprawling French PSA Groupe is both intriguing and high-wire terrifying.

And it is also by no means a done deal.

When the Fiat Chrysler merger happened amid the economic bloodbath of 2009, many crusty motor press vets scoffed that it was two shaky car companies getting together to create one enormous shaky car company.

And while both sides of the big Italian-American family had problems … they also had enormous brand power, visionary leadership and enough cash, mostly in US and Canadian government loans, to create some major breakthroughs.

With Jeep and RAM pickup trucks powering to new heights of quality, innovation and global sales, Dodge adding super-performance Chargers and Challengers with price tags topping $80,000, even lagging nameplates Chrysler and Fiat have reached a predictable stride.

And let’s not forget cousins Alfa Romeo, Maserati, and Ferrari adding high-tone panache and solid margins.

The impact of this merger in the US will be less prominent than across the Atlantic where PSA Groupe has the popular European brands Puegeot, Citroën, DS, Opel and Vauxhall.

The point of this merger is a $4.11 billion annual savings in production and labor overlap, most likely to impact foreign workers before causing ripple here in North America.