What The FCA & PSA Merger Means For U.S. Market

Fiat Chrysler Automobiles (FCA) and PSA Peugeot Citroën have formally announced a 50/50 merger, making the now unified automaker the fourth largest in the world.

Any time one or more manufacturers choose to come together and join arms, it leaves a lot of grey area for consumers, especially since new company practices can differ depending upon the market. So what does the big merger mean for the everyday American car-buyer?

According to a report from Car and Driver, the merger is primarily focused on allowing FCA brand vehicles to have access to the advanced technology that PSA has developed since the group was founded in 1976. Some of this tech includes electrified drivetrains and advanced front-wheel-drive platforms.

This means that future models of popular American FCA cars like the Jeep Wrangler can benefit by having access to all kinds of technology that were never available to Jeep’s team of engineers before. In short, the iconic look of some vehicles we have come to know and love may look and drive a bit different in the years to come.

But that’s all speculation, and all we know for now is that both groups are happy to combine forces. With a little luck, each party will bring their biggest strengths to the table and car-buyers will reap the benefits of having access to newer, better cars from some of their favorite brands.

While only time will tell how the American market will be impacted by the merger, FCA CEO Mike Manley believes investors should feel elated about the news.

“I’m delighted by the opportunity to work with [PSA] on this potentially industry-changing combination,” said Manley. “We have a long history of successful cooperation with Groupe PSA and I am convinced that together with our great people we can create a world-class global mobility company.”

The decision for both groups to merge seems to be following a trend that has become more popular in the automotive industry. Automakers are electing to team up in the face of mounting pressure to improve year-over-year growth. And while the FCA-PSA amalgamation accounts for 8.7 million vehicles sold in a calendar year, that’s still only good enough to be the fourth highest in the world.

Keep checking Napleton News for updates on all things related to the automotive industry and how it impacts the North American market.

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