Rumor: Peugeot might join Chrysler-Fiat alliance

Article by Christian Andrei, on August 27, 2010

The global alliance that have been the topic of much discussion lately has already been officially signed last week by Fiat Group, Chrysler and its parent company Cerberus Capital Management.

This alliance, which is an important element to the viability plan of Chrysler, would enable Chrysler to access Fiat's competitive, fuel-economical vehicle platforms, the latest powertrains, and parts to be manufactured at Chrysler's facilities.

On the other hand, Fiat will be providing Chrysler its distribution capabilities in important growth markets, including considerable cost-cutting opportunities and management expertise besides the aforementioned access to its technology and parts.

As reported, Fiat will not be putting in cash or be funding Chrysler in the future, but instead Fiat will be receiving 35 percent equity investment for all that it has offered Chrysler.

The advantages Chrysler will enjoy in this alliance includes city and compact vehicles sourced from Fiat, fuel efficient and eco-friendly powertrains, access to distribution networks for Chrysler vehicles in markets outside of North America.

Fiat, on the other hand, will also be provided the necessary platform to reintroduce its products, such as the Fiat 500 and Alfa Romeo, in the US markets, which will be built by Chrysler locally making a lot of business sense.

Lately, there have been signs that PSA Peugeot Citroen may be joining the alliance through a merger with Fiat, but nothing is certain though. There are reports coming out saying that Fiat is searching Europe to secure a credit line of up to 5 billion Euros ($6.4 billion) to fund it Peugoet takeover.

Meanwhile, the Agnelli family, which owns an estimated 30 percent of Fiat SpA, is trying to increase its stake in the merged company with 2 billion Euros ($2.56 billion) to retain a controlling stake. If this tripartite allegiance pushes through, it would become the third biggest in the global industry behind Toyota and GM.

If you liked the article, share on:


Login or Create new account to add a comment!


Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016
Most of you may have heard or already have one of those autonomous home appliances doing the house chores. Thus, it’s not anymore unusual to see a car going places...
by - October 20, 2016