News PSA - Fiat Chrysler: will the crisis abort the merger project?

10:05  25 march  2020
10:05  25 march  2020 Source:   pressfrom.com

Every Automaker That Offers Incentives, Loan Support in Pandemic

  Every Automaker That Offers Incentives, Loan Support in Pandemic Manufacturers are looking to boost sales, but they're also looking to help customers stay in their cars. Here’s a continuously updated list of the offers. Automakers are offering new incentives and support for current borrowers and lessees during the ongoing COVID-19 pandemic.For current owners, rescheduling payments is an option on a case-by-case basis.With these offers in hand, now might be a good time to buy a new car.

Fiat Chrysler and PSA will each nominate five members to the new company’s board. The chief executive, Mr. Tavares, will hold the 11th seat. Most union leaders at PSA welcomed the merger , saying it would let the automaker compete with giants like Volkswagen and Toyota and possibly

Auto giants Fiat Chrysler and France's PSA group are planning a merger that would see the company become The merger — which is not guaranteed — comes following a failed attempt earlier this year to Northvolt's mammoth project . Headed by a former Tesla executive, Swedish company Northvolt

PSA - Fiat Chrysler : la crise fera-t-elle avorter le projet de fusion ? © SP / Peugeot PSA - Fiat Chrysler: will the crisis put an end to the merger project? Shadows hang over the marriage announced between PSA Peugeot Citroën and Fiat Chrysler Automobiles (FCA), because of the pandemic which weakens the two giants of the car and threatens the balance of the operation, according to financial sources.

The coronavirus threatens the PSA-Fiat Chrysler marriage. Announced at the end of October and supposed to be finalized at the beginning of 2021 at the latest, this merger, if it comes to an end, must give birth to the world number 4 of the automobile, housing under the same roof emblematic brands like Peugeot, Citröen, Jeep, Alfa Romeo and Maserati. Certainly preparations are continuing, according to these sources who requested anonymity to discuss this sensitive subject. Legal teams and lawyers are still working hard to get the go-ahead from antitrust authorities, it says. Audit and consulting firms and financiers are working on the required stock market documentation, in particular the famous F-4 file required by the SEC, the policeman of the American Stock Exchange.

Coronavirus and Car Buying: What You Need to Know

  Coronavirus and Car Buying: What You Need to Know Coronavirus and Car Buying: What You Need to KnowThe effects of the coronavirus pandemic continue to spread throughout the world, creating disruptions in the economy, sending the stock market into steep losses, shaking consumer confidence, and putting thousands out of work.

Fiat Chrysler and PSA of France said Wednesday that they had agreed to the terms of a merger that would create the world’s fourth largest automaker. PSA has shown no sign of second thoughts about the merger even after Fiat Chrysler became the target last month of a racketeering lawsuit by G.M

Fiat Chrysler has made a "transformative" merger proposal for French carmaker Renault, the Italian firm said on Monday. The combined business would be 50% owned by Fiat shareholders and 50% by Renault stockholders. The carmaker said the merger would create a global automotive leader, with

But the Covid-19 pandemic, which caused to plummet financial markets, is plunging the economy into recession and shutting down the two manufacturers' production sites by Europe and FCA in the United States. And she is now questioning the financial terms of the marriage, say these sources who are working on the transaction. "The two groups need this marriage in view of the heavy investments that must be made in the electric car but it must be recognized that, taking into account the economic situation, for the merger to take place, it is necessary to review the initial financial terms ", suggests one of the sources.

>> Read also - The Peugeot family holding company will be able to strengthen in PSA

"The assumptions on the value of companies, the income and sales projections made during the discussions must be reassessed", opines Karl Brauer, expert at Kelley Blue Book. PSA and FCA "no longer have the certainties they had even a month ago in terms of sales, revenues, market share, product mix," he said. The two groups want a merger "between equals", which, according to their plan, involves the distribution of an ordinary dividend of 1.1 billion euros to their respective shareholders for 2019.

First driver! McLaren drivers waive part of their salary

 First driver! McLaren drivers waive part of their salary © PIXATHLONPIXATHLONSID McLaren: Sainz and Norris waive their salary Hamburg - Carlos Sainz (25) and Lando Norris (20) are the first Formula 1 drivers to voluntarily waive parts in the wake of the Corona crisis of their salary. The measure is part of a savings package at the traditional McLaren racing stable, which had to send numerous employees on unpaid forced leave. Out of solidarity with the employees, Sainz and Norris and company boss Zak Brown cannot be paid the money due.

Fiat Chrysler and Peugeot owner PSA Group have signed a binding merger agreement, solidifying a nearly billion deal that will create the world's third largest automaker.

Citing increased cost savings the companies announced an agreement to merge , forming the fourth-largest global automaker by volume and third largest If this is your first time registering, please check your inbox for more information about the benefits of your Forbes account and what you can do next!

FCA is supposed to also pay a dividend exceptional 5.5 billion euros, while PSA must distribute to its shareholders its 46% stake in the capital of the French equipment manufacturer Faurecia. First problem: the market capitalization of Faurecia has melted by at least a third since the announcement of the engagement, so that the value of the participation of PSA had decreased by nearly a billion euros on Monday. "We will have to rebalance things between shareholders if we still want to talk about merger between equals," said one of the financial sources. "I have always found that parity is very much to Fiat's advantage. It is even more so" with the fall of the Faurecia title, adds an industry expert on condition of anonymity.

It is also no longer certain that PSA and FCA keep their promise to each pay the dividend of 1.1 billion euros, say the sources, because they must preserve their liquidity to cope with the coming collapse in sales. automobiles both in Europe, where the former earns most of its revenues, and in the United States, where the latter generates very large margins.

Corona and its consequences: does Ducati sacrifice the factory team in the Superbike World Championship?

 Corona and its consequences: does Ducati sacrifice the factory team in the Superbike World Championship? © Ducati Ducati face major losses: does Corona threaten the WSBK factory team? No races, stationary belts in the factories and the great uncertainty as to whether people will buy as many motorcycles as before after the corona crisis: Ducati is currently having to think about how to best respond to the consequences of the corona pandemic. Although Ducati is significantly smaller than its Japanese competitors, the Italians work teams in the MotoGP and Superbike World Championships .

Conversations between Fiat Chrysler and PSA began earlier this year, when PSA sent out advisers for a deal to turn the company into a global The merger likely would not provide much support in China, the world's largest auto market. Both entered the market in the late 1980s, only a few years later to fold.

The PSA Group- Fiat Chrysler combination announced Thursday comes as auto sales have cooled worldwide. Speaking on Fiat Chrysler ’s earnings call Thursday morning, chief executive Michael Manley said that the merger was “consistent with everything we’ve been saying for a long time about

All the more so since governments will be vigilant. French Minister of Economy Bruno Le Maire on Tuesday asked "all companies, especially the largest, to exercise the utmost restraint on the payment of dividends". "It is a time when all the money has to be used to run businesses." A fortiori if companies call on state aid.

>> Our service - Save money by testing our

Auto Insurance comparator Claiming that 14 million European jobs are threatened, the Association of European Automobile Manufacturers (Acea) asked, on March 20, for a financial support for the automotive industry, which is facing "the worst crisis" ever experienced by this sector. "If PSA or FCA appeal to the state, how could they justify that they demand billions from taxpayers and at the same time distribute billions to their shareholders?" Wonders Gregori Volokhine, expert at Meeschaert Financial services.

When questioned by AFP, the French Ministry of the Economy, indirect shareholder of PSA via the sovereign fund BPIFrance (12.2%), did not wish to react. A PSA spokesperson simply recalled that the merger schedule remained "unchanged", while FCA did not follow up. Jean-Marie Messier, whose firm Messier Maris & Associés advised PSA in this transaction, and Michael Zaoui, counsel to the Peugeot family via Zaoui & Co, also did not comment.

>> Join the Capital Boursicoteurs Club on Facebook (click on the image)

  PSA - Fiat Chrysler : la crise fera-t-elle avorter le projet de fusion ? © Provided by Capital Getty Images

>> Subscribe to our Companies and Markets newsletter

>> Our service - Invest in innovative companies and with high valuation potential before their IPO

dealership in Austria wants to sell DTM-Aston-Martin: 1.7 million euros! .
An Austrian car dealership offers the Aston Martin Vantage for sale: why it happened, why the DTM car is now green and what role HWA is playing What happens to the Aston Martin Vantage cars after the R-Motorsport-Aus in the DTM? There was talk of a sale by HWA to China and even of a possible comeback in the upcoming DTM season .

—   Share news in the SOC. Networks
usr: 0
This is interesting!