Suddenly everything went very fast: The day before, had confirmed speculation that talks between Fiat Chrysler Automobiles (FCA) and Peugeot SA (PSA), it was reported on Thursday law enforcement. The italo-American (including Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Maserati) and the French-German car manufacturers (Citroën, DS, Opel, Peugeot) go together! Thus, the created, behind Toyota, VW and Renault-Nissan is the fourth-largest car producer in the world, with around 8.7 million vehicles produced per year and 187 billion Swiss francs in annual sales.

This year-long speculation about a possible mega-merger of FCA with a competitor to an end. The 2018 deceased Ex-FCA CEO Sergio Marchionne, General Motors and VW had beautiful eyes, but always a basket brought. Most recently, his successor, Michael Manley wanted to rates in the June FCA with Renault and with it the promise, but failed as well.

an Equal merger?

The combination of heavy weights is to be completed by a share split in the ratio 50:50 equivalent. PSA boss Carlos Tavares will lead the group, FCA Chairman John Elkann will take over the same Job in the new group. But both companies really benefit equally from the merger?

the FCA has been long exhausted. Years of stress due to the merger with Chrysler, tenacious sales and, above all, the lack of investment in new technologies have cause the group to fall back. Add to that Overcapacity, the reduction could be realized Marchionne a hard time against the Italian unions. Because of the Jöh effect, the Fiat 500 sold still well. In the coming year, the new Generation is expected. But otherwise, the core brand acts burned out and the model range is in urgent need of renewal. The former successful model of Punto has been deleted, the boring, but objectively successful Tipo is marketed only in a very dilatory fashion.

Jeep topp, Maserati na Yes

of the more expensive models shines at FCA Jeep with rapidly growing sales, especially in the U.S. – 90 percent of group profit train is North America. And after all, the reboot of the Alfa Romeo was achieved with the Stelvio and Giulia. But the high-flying plans for Maserati – 50’000 cars per year – collapsed after a straw fire, after the Levante SUV again. In the last year, slightly more than half as many Maserati’s were delivered as targeted.

And for the future it is little better: The electrification was almost sleepy; until the beginning of 2020, the first Plug should appear-in Hybrids at Jeep. And when Autonomous FCA is dependent To the innovation of the Alphabet, a daughter of Waymo, after all, the hard-working Vans orders as a basis for Autonomous prototypes.

synergies in the small-car

FCA therefore benefits massively from the merger with PSA: Both companies are heavily car is small and can be achieved with common platforms and drives significant savings – per year it should be around 9.6 billion Swiss francs. The same is true for the important business with light commercial vehicles. And PSA has done with the Peugeot e-208, or the DS 3 cross back E-Tense long since the entry into electro-mobility. FCA could easily access existing technology in the saddle

Ambivalent about in the so-called Premium Segment: Here, PSA has little to offer, could set up with FCA help. At the same time, Carlos Tavares, however, is not a friend to more expensive precious technology, or Extravagances such as a rear or a mechanical all-wheel drive. Alfa, Jeep and Maserati will have to fight hard for their positions.

More markets, less capacity

The PSA gains access to the American market. Already in March, Tavares had announced that it will return with a Peugeot on the US market, which had been abandoned in the course of the 1980s gradually. The is now easier. Jointly the necessary investments in CO2-reduction, electrification, networking, Autonomous Driving, or mobility services can also be easier to lift. Sure FCA benefited more, but the merger is likely to turn out for both groups as a love marriage. If it is possible to synchronize different business cultures.

it is Clear, however, that There will be a consolidation in production capacity. Plant closures were not provided, it means, from the group’s circles. The European car market is saturated. Competitive advantages can only be about cost savings – i.e. redundancies – can be realized. And the pressure increases by the 2020 current CO2 limit of 95 g/km. More emissions of the new cars fleet will have to be with the penalties offset, which is sure to lead to a rise in car prices.

Who will take a reduction?

In the French PSA works has cleaned up the iron-hard renovators Tavares is already strong, in the case of Opel, the process is advanced to far. But even there, it could lead to further Savings if the Italian unions prove once again as a tough opponent and their jobs with tooth and Claw to defend – against all economic necessity.

And in Switzerland, it is exciting: From the 1. February, the Emil Frey AG, notabene the largest car dealer in Europe, the Swiss PSA business. Whether behind the Scenes now on the FCA brands being discussed?