The merger attempt by FCA and PSA will be complicated but makes economic and operational sense, including for R&D investment. Whether or not it goes ahead, more consolidation is likely as the automotive industry gears up for electrification
The pace at which PSA Group and Fiat Chrysler Automobiles appear to have agreed a deal to merge and create the world’s fourth largest carmaker is remarkable, with an agreement in principal hammered ou in just a few days.
Although hurdles remain before a final merger, that speed belies a growing urgency across the automotive industry. In the face of mounting pressure to invest in new technology, notably electrified powertrains, expensive fines over emissions, and the risk of a prolonged slowdown in global vehicle sales, traditional automotive players need to gain even more economies of scale and pool risk to make these transitions – if not to survive.
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OEMs are rushing to bring out more electric SUVs in a bid to meet emissions targets and protect margins. But they will require innovations in design and engineering to stay desirable and competitive in an increasingly crowded field
Download our full report and analysis on the devastating impact of the coronavirus crisis on global vehicle demand across major regions. Our forecast includes assessments according to best case, base case and worst case scenarios across North America, Europe, China, Japan, South America, Asia Pacific, the Middle East and Africa.
You asked, we answer. We return to the questions from our audience that we didn’t have time to answer in our live webinar, ranging from which parts of automotive tier 1 suppliers’ business models are at risk of commodification, to how tier suppliers are changing supply chain processes
