PSA-Fiat wedding: Europe green light, under conditions
The PSA-FCA merger was authorized by Brussels.Among the conditions imposed: strengthen a partnership with Toyota on the utility market. The decision was expected.Brussels authorized the ...
15/03/2023
The PSA-FCA merger was authorized by Brussels.Among the conditions imposed: strengthen a partnership with Toyota on the utility market.
The decision was expected.Brussels authorized the merger between the PSA and FCA (Fiat Chrysler Automobiles) group).The two manufacturers now hope to complete their wedding by the end of the first quarter 2021.Together, they will form Stellantis, the fourth world car manufacturer.
The European Union has given its agreement subject to commitments made by companies.They concern the market for small utilities.A few months ago, the EU alerted to the risk of monopoly in this area, with the cumulation of Citroën, Opel and Peugeot sales with those of Fiat.
In a press release, the European Commission explains: in nine Member States, "companies have high or very high cumulative market shares and are particularly close competitors.The acquisition would therefore probably have led to an increase in prices for customers ".
For Europe to accept, PSA proposed to strengthen its cooperation with Toyota.The Japanese is a partner but not integrated into the group.Boost its production will therefore modify the market.The Commission indicates that: "This will be done by an increase in the capacity available for Toyota and a reduction in transfer prices for vehicles and replacement parts/corresponding accessories".
Another condition proposed by the bride and groom: facilitate the access of competitors to the repair and maintenance networks of PSA and FCA, for the utilities always.The Commission therefore considered "that the first corrective measure will allow Toyota to effectively compete with the entity resulting from the concentration on the markets concerned in the future.In addition, the second corrective measure will help new entrants to develop and to be competitive on the markets of light utility vehicles ".