There is great excitement in the automotive world. Tesla has become the world’s second-largest car company by stock market value after Toyota, as Fca and Psa prepare to merge.
According to the latest statements by Fca CEO Mike Manley, the merger should be finalized relatively quickly.
“I think”-said Mike Manley-“it will take 12 to 14 months to complete the Fca-Peugeot merger because there are many territories in which we operate-there is no delay but time is needed.
The merger will enable the Group to make more adequate investments on new technologies, trying to keep up with the Chinese, Americans and Germans. It will also bring many advantages geographically in that PSA will be able to put a foot in the United States and Latin America, where it is still absent, while FCA will be able to land in Africa. Both, finally, could see their market position in Europe strengthened.
Meanwhile, in anticipation of the merger, after several failed attempts, Fca is preparing to land in China through a lucrative partnership with Hon Hai, one of the jewels of the Asian hi-tech industry.
The Taiwanese company that controls the multinational FoxConn, which produces a wide range of other electronic products and about half of the iPhones sold worldwide, intends, in fact, to form an equal joint venture with Fiat Chrysler, and it is estimated that by partnering with the Taiwanese multinational, the automaker will be able to capture at least 10 percent of the Chinese market.