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PSA will be merged into FCA

Discussion in 'Mopar / FCA News' started by T_690, Feb 26, 2020.

  1. aldo90731

    Staff Member Level III Supporter

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    Somehow I have a hard time seeing Nissan doing many significant “upgrades” when it’s been trying to cost cut it’s way out of bankruptcy for months.
     
  2. MJAB

    MJAB Well-Known Member

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    The Detroit News - "EU opens investigation into Fiat Chrysler-PSA merger over commercial van competition"
    EU opens investigation into Fiat Chrysler-PSA merger over commercial van competition (at https://eu.detroitnews.com/story/business/autos/chrysler/2020/06/17/eu-investigates-fiat-chrysler-psa-merger-over-commercial-van-competition/3202337001/ )

    note:
    In the article they say talk about "small vans", in reality are most of the vans sold in European Union. Infact the investigation is about the LCV (light commercial vehicles) that are the ones with gross vehicle weigth up to 2.5 tonnes (metric ton).

    It is largest market share for commercial vehiclessince most people driving license is the B class.
    Class B is for vehicles with gross weigth up to 3.5 tonnes, 8 passengers + 1 driver and can tow a trailer maximum weight up to 750 kg for a total of 4250 kg (but there are other possible combination or also an additional exams to tow more and get the BE class license).
     
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  3. 77 Monaco Brougham

    77 Monaco Brougham Well-Known Member

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    Hasn't Nissan been trying to cost-cut its way through the last 20 years already?!;)
     
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  4. T_690

    T_690 Well-Known Member

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    What did I say?

    "Commercial vans ... are a growing market and increasingly important in a digital economy where private consumers rely more than ever on delivery services," Margrethe Vestager, the commission's executive vice president, said in a statement. "We will carefully assess whether the proposed transaction would negatively affect competition in these markets and ensure that a healthy competitive landscape remains for all the individuals and businesses relying on commercial vans for their activities."

    From Wikipedia:
    Margrethe Vestager is a Danish social liberal politician serving in the Von der Leyen Commission as Executive Vice President of the European Commission for A Europe Fit for the Digital Age since 1 December 2019 and European Commissioner for Competition since 2014.
     
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  5. Dave Z

    Dave Z It's me, Dave
    Staff Member Level III Supporter

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    There are ways around this, including licensing.
     
  6. Adventurer55

    Adventurer55 Well-Known Member

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    If this is the only glitch in their merger, then I don't think they have much to worry about. How many of these vans do the combined companies sell in the EU?
     
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  7. T_690

    T_690 Well-Known Member

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    It' the most lucrative part of European market, one with the highest margin and one where FCA and PSA already have JV in place.
     
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  8. MJAB

    MJAB Well-Known Member

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    PSA + FCA in 2019 should be about 755k light commercial vehicles. PSA sells more units.
    Of the total units something less of 300k the larger vans, of which Fiat Professional Ducato about 160k and Peugeot Boxer + Citroen Jumper 140k.
    The Sevel plant in Italy, joint venture FCA-PSA, reached its maximum production capacity.
    PSA before the merging deal, when the Sevel joint venture was renewd till 2023, announced it would also start to manufacture the large vans in its Gliwice plant in Poland.

    In 2013 the toal production at Sevel was 213k units.

    A Fiat Proferssional Ducato pricelist is about Euro 25k + taxes for the smaller van version with 2.0 diesel engine, 26k for the smaller with 2.3 diesel engine and goes up to Euro 37k + taxes for a 35 2.3 diesel Maxi version.
    That is pricelist, than there are discounts made by dealers, most discount are on the ines in the lots "km 0", that are the ones they order to reach some commercial target (discounts from FCA or other vehicles).
     
    #188 MJAB, Jun 17, 2020
    Last edited: Jun 17, 2020
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  9. Adventurer55

    Adventurer55 Well-Known Member

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    So, what kind of a concession would the EU most likely ask for then? Wouldn't it be unfair to ask the companies to both leave that particular van market?
     
    Stéphane Dumas likes this.
  10. Tony K

    Tony K Active Member

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    I've driven the gas 2008, which is a larger platform mate, about a year ago in Germany. Thought it a decent car.
     
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  11. KrisW

    KrisW Well-Known Member

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    Hardly the same scale. I'm always wary of the opinions of investors - maybe they were short on some of their PSA holdings with the hope of increasing their shareholding in future, but now this merger will raise the share price and cost them money.
     
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  12. Beentherebefore

    Level III Supporter

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  13. aldo90731

    Staff Member Level III Supporter

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    Investors should be taken with a grain of salt; they can rarely see more than three months out. At the same time, this pandemic has exacerbated weaknesses and strengths that were already in place. In this case, it has exposed open many of FCA’s underlying weaknesses, and highlighted Tavares’s sound financial practices.

    Given that the auto sector may not return to pre-pandemic conditions any time soon, if ever, this investor may have a point.
     
  14. T_690

    T_690 Well-Known Member

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    Based on? Do you have any evidence for your opinion?
     
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  15. aldo90731

    Staff Member Level III Supporter

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    Based on the numbers in front of you.
     
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  16. T_690

    T_690 Well-Known Member

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  17. MJAB

    MJAB Well-Known Member

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    The sentence about LCV looks like the wanted to built a new large van in PSA after 2023 (in february 2019 the FCA - PSA deal, SEVEL joint venture, was prolongued till 2023).
    Acutal Opel Movano is a Renault Master.
     
  18. MJAB

    MJAB Well-Known Member

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    The italian Corte dei Conti gave green light to FCA loan of Euro 6.3 billion with italian state guarantee, it was the last technical authority that had to give green light.
    Interest rate is 2% (or less).
     
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  19. Adventurer55

    Adventurer55 Well-Known Member

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    Would the loan itself have given way to the investor opinion about PSA?
     

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