John Elkann: “FCA and PSA, the journey continues”

It was not the usual notice to investors, the one sent by John Elkann, chairman of FCA, to the subscribers of shares Exor: not the usual report on the trend of the market, not an analysis about the subsidiaries, FCA, Ferrari and Cnh Industrial, are not the usual indications on the size of dividends to be received, but rather the reassuring words of hope in relation to the present moment: “I write a “letter from lockdown”, while we are going through the difficult weeks, that you are rapidly transforming in the months unimaginable. Events that none of us would have been able to predict even just a short time ago when we held our Investor Day in Turin, which also marked the tenth anniversary of Exor. Our family is in business for a long time and has overcome wars, revolutions, crises, and pandemics. During this crisis, we have done everything possible to protect our society, knowing that when the economies will be first in line to do so that all of our communities and the Countries in which we operate can start the recovery”.

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John Elkann, who in recent days has announced to waive its fees for the current year because of the emergency Covid-19, confirms that “there were days and weeks are difficult for all of us, and we know that the repercussions of this crisis will remain for some time. But we were impressed by the spirit and determination of our people, to ensure that our company will emerge stronger when all this will end. There are glimmers of hope that tell us that we can finally start to get back to some kind of normality, remembering that it is not possible to choose between the health of the people and the economy: without the first, there can be no second, never”.

Finally Elkann, confirming the confidence to continue in the implementation of future projects, outlines the next steps for the merger with the PSA: “We are very confident of being able to achieve the synergies declared, equal to about € 3.7 billion a year, given the current situation (i.e. without closures), thanks to the creation of a new company, especially considering that will be driven by Carlos Tavares, who got solid results as the Ceo of PSA and understands the importance of corporate culture. Exor will be the majority shareholder of NewCo, with about 14% of the capital, and is ready to work together with the family Peugeot, through its holding company, EPF and FFP, will be the second largest shareholder. In doing this, we will be able to rely on what we have learned in successful partnerships that we have with the Ferrari family, which has provided the management of Ferrari the governance stable it needs to continue to grow their great companies. The next twenty years the automotive industry have the potential to be as exciting as the first twenty. We believe that the new company will have the size and resources to be at the forefront of this new era of sustainable mobility”.