The merger attempt by FCA and PSA will be complicated but makes economic and operational sense, including for supply chain management and logistics. Whether or not it goes ahead, more consolidation is likely as the automotive industry gears up for electrification
The pace at which PSA Group and Fiat Chrysler Automobiles appear to have agreed a deal to merge and create the world’s fourth largest carmaker is remarkable, with an agreement in principal hammered ou in just a few days.
Although hurdles remain before a final merger, that speed belies a growing urgency across the automotive industry. In the face of mounting pressure to invest in new technology, notably electrified powertrains, expensive fines over emissions, and the risk of a prolonged slowdown in global vehicle sales, traditional automotive players need to gain even more economies of scale and pool risk to make these transitions – if not to survive.
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Daihatsu has shut down all production in Japan and halted the domestic and export shipment of vehicles following an investigation into safety procedure irregularities
Tesla’s refusal in October to sign a collective agreement for repair centre mechanics has resulted in strike action taking place across the country
Stellantis production in North America was hit by a cyberattack against its parts supplier Yanfeng International Automotive Technology last week.
