Fiat Chrysler Automobiles and PSA Group have said they will not to close factories if they merge but this promise is likely to come under heavy strain as the combined group would have spare production capacity of almost 6 million vehicles in a slowing autos market.
Following the news that PSA Group and Fiat-Chrysler (FCA) are in discussions to combine operations and create a leading global group; David Leggett, Editor at GlobalData, a leading data and analytics company, offers his view.
Shares in Fiat Chrysler Automobiles and Renault fell sharply in early trading on Thursday after their $35 billion-plus merger plan fell apart only 10 days after being made public, with FCA blaming French politicians.
Fiat Chrysler Automobiles could face billions in euros in fines from the French government if the automaker is found to have committed fraud by cheating on diesel emissions tests, the newspaper Le Monde reported.
Fiat Chrysler Automobiles and Guangzhou Automobile Group are in talks to deepen their tie-up in China, as the world’s largest car market looks to relax some regulations and Guangzhou prepares to sell its Trumpchi brand in the U.S.
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