PSA Boss Sees More Auto Deals
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The head of Peugeot maker PSA Group expects more consolidation in the auto industry as carmakers invest vast sums to make electric vehicles, he said on Monday, while predicting some wouldn’t make it through the coming decade.
“Only the most agile with a Darwinian spirit will survive,” Carlos Tavares said at the Reuters Automotive Summit teleconference, adding PSA was no longer investing in internal combustion engines as Europe and China push for cleaner driving.
Tavares also said PSA was far ahead of its objectives in meeting European Union CO2 emission targets.
PSA is working towards a planned merger with Italian-American Fiat Chrysler Automobiles NV (FCA) and Tavares reiterated this was on track for the first quarter of 2021.
“So far, so good,” he said, adding much of the hard work in bringing the two companies together had already been done.
PSA and FCA will operate under the name Stellantis after they merge, becoming the world’s fourth-largest carmaker.
Tavares said one of the tasks facing the merged group would be improving its performance in China, the world’s largest car market, where it will have a considerably smaller market share than in Europe and the United States.
“No global car company can afford not to be in the largest car market in the world,” Tavares said.
Questions & Answers
Q.What is the primary reason for the expected consolidation in the automotive industry?
What is the primary reason for the expected consolidation in the automotive industry?
The head of PSA Group believes carmakers are investing vast sums into electric vehicles, which will lead to more industry consolidation. He anticipates some companies will not survive the coming decade.
Q.What is the current status of PSA's merger with Fiat Chrysler Automobiles NV?
What is the current status of PSA's merger with Fiat Chrysler Automobiles NV?
The merger with Fiat Chrysler Automobiles NV is reportedly on track for the first quarter of 2021. Carlos Tavares stated that much of the hard work in bringing the two companies together has already been completed.
Q.What will be the name of the merged entity, and what will its global ranking be?
What will be the name of the merged entity, and what will its global ranking be?
After the merger, PSA and FCA will operate under the name Stellantis. The combined entity is expected to become the world's fourth-largest carmaker by volume.
Q.What key challenge will the merged Stellantis group face regarding its market presence?
What key challenge will the merged Stellantis group face regarding its market presence?
A significant challenge for Stellantis will be improving its performance in China, which is the world’s largest car market. The group will have a considerably smaller market share there compared to Europe and the United States.
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