Peugeot maker PSA Group and Fiat Chrysler would retain all of their car brands if their planned $50 billion merger goes ahead, the would-be chief executive of the combined group said on Friday.
PSA CEO Carlos Tavares, seen as the architect of PSA’s turnaround and in line to take the operational helm in the Fiat tie-up, said in a TV interview that the companies complemented each other well geographically and in terms of technology and brands.
FCA derives 66 percent of its revenue from North America compared with only 5.7 percent for PSA, Refinitiv Eikon data shows. Europe remains the main revenue driver for PSA.
“There’s no doubt it’s a very good deal for both parties. It’s a win-win,” Tavares told France’s BFM Business, in his first interview since the French and Italian companies announced plans to create the world’s fourth-largest automaker last week.
Fiat Chrysler (FCA) Chairman John Elkann, who would chair the combined group, said on Friday at an event in Turin that the 50-50 share merger would help the Italian carmaker “seize great opportunities.”
The deal, which would help the firms pool resources to meet tough new emissions rules and investments in electric and self-driving vehicles, as well as counter a broader downturn in car markers, is still at an early stage.
PSA and Fiat have said they aim to reach a binding outline in the coming weeks, but still face questions over potential job losses, as well as scrutiny over whether the transaction favors one party more than the other.
Tavares said the brands that would come under the combined group’s umbrella – PSA’s five-passenger car labels include Citroen and Vauxhall, while FCA has nine, including Alfa Romeo, Maserati and Jeep – were all likely to survive.
“As of today, I don’t see any need to scrap any of the brands if the deal came to pass. They all have their history and their strengths,” Tavares said.
Few carmakers have as large a portfolio, with German rival Volkswagen counting 10 passenger brands, if newer Chinese ones such as electric vehicle label Sihao are included.
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