Fusion FCA-PSA – Elkann confirms the objectives and the times: “the crisis of The Covid-19 supports the operation”

“The crisis of the Covid-19 has further confirmed the solid reasons for the union between FCA and PSA, which relies on the creation of an innovative business model, with the size to generate huge efficiencies and combine the expertise necessary for the development of advanced technologies”. He said the president of the manufacturer, italo-american, John Elkann, during the annual general meeting of the shareholders on the financial statements 2019, in Amsterdam, speaking of themerger agreement was signed at the end of last year.

Great future in sight. “A great future”, he added, is the new company that will have the leadership, resources and know-how to offer customers the best products at affordable prices, and will be a point of reference for innovation, quality and choice. The union between the FCA and PSA has all the papers in rule in order to give life to a successful leader in this new world, and the excellent relationship that has been established in recent months, even on a personal level, with Louis Gallois (president of the supervisory board of the PSA, editor), Carlos Tavares (ceo, ed) and their team is a clear demonstration of our shared vision and our determination to reach the goal.”

Timing confirmed. Elkann, as stated yesterday, from Tavares, he then confirmed the objective to close the transaction by the end of the first quarter of 2021, despite the European Commission has launched anin-depth investigation on the consequences of the merger, in particular the market of light commercial vehicles.”The fusion joint with the Psa – has the president of the FCA, will create a global group that will be the fourth in the world for volumes, able to generate synergies by year for 3.7 billion euros and ready to seize the great opportunities of the new era of sustainable mobility. Despite the enormous challenges that have arisen due to the emergency Covid-19, I can confirm that the work carried out by our team to bring to an end the blending is continued at a rapid pace and we expect to achieve the goal of becoming a single company within the first quarter of next year”. “Last year,” continued Elkann – I pointed out that the historic and continuing commitment of my family to the company and I have also told you that we are ready to handle decisions and initiatives, with the daring and creativity to build a solid future and promising”. Elkann has explained, “the agreement with PSA was the culmination of a year of strenuous activity, aimed at transforming words into deeds. They are also particularly happy, he said that this merger marks the union with the Peugeot, which is also a family that has more than a century of commitment, and extraordinary success in this industry.”

The words of Manley. On the issue of the survey of Brussels was also attended by the chief executive of the FCA, Mike Manley: “The process of merging with PSA goes forward according to the time schedule and the work of the european antitrust will not be affected”. “The European Commission – has added Manley has begun an examination of the merger project with a focus on light commercial vehicles: we don’t expect that this would cause delays on the roadmap towards the completion of the merger. The two groups will continue to engage with the Commission in a constructive spirit. The preparation of the merger is progressing well and according to plan, we already had the ok of antitrust in the United States, China, Japan and Russia”.

2019 important for the present. Elkann also spoke of 2019 and the current situation affected by the effects of the coronavirus: “Even if now seems to be the past a long time, last year was extremely important: we have achieved successes and consolidated strengths, which proved both useful in the first months of this 2020 so challenging. We have further strengthened our already solid financial position, and made important steps forward in the process of transformation of the company for the new era of sustainable mobility. It was the best way to celebrate the 120th anniversary of the founding of Fiat”. “For us to FCA – continued the president – to handle adversity is not a new thing, and our people know well how to give priority to what is important to the company. The many and difficult challenges that, in the course of the years, we have faced and overcome on a global level have taught us that to successfully manage our company is also of fundamental importance for the local communities where we are present. The commitment and the solidarity that our people have shown in these months, offering assistance that was needed anywhere in the world – for example, building field hospitals, putting vehicles and ambulances at the disposal of the first responders, fabricating, and repairing ventilators to the lungs, producing masks and face shields – are a clear demonstration of the excellent spirit which animates the FCA”.

Activities broken down. “The first half of 2020 has reminded us, even if we are probably the last company to have need of a similar reminder, that we never know what the future holds. But what we can do is to make sure that you always be as strong as possible in each area of activity, in order to be ready at any moment to face the challenges that await us,” he stressed Elkann. “The results of 2019 has strengthened the foundations are already solid and have helped us to handle this emergency with confidence, flexibility and determination. The emergency that, according to Manley, is now behind us, at the least, its worst effects. “Starting this week, he explained, most of the systems are again operational. Together with the restart of production, the greater part of our dealer network is open”. “We entered this crisis with a budget that is very solid and, despite significant cash outflows, we have further strengthened our liquidity with a new line of credit bridge 3.5 billion dollars in April, and a credit line of € 6.3 billion that we signed at the beginning of this week was dedicated to our operations in Italy. The way in which we have tackled this challenge tells me that, in spite of the months of the challengers that we have still before us, and we will come out stronger than ever,” he concluded.

Source: Quattroruote.en – Edited by Anthon K.