RESPONSE TO A SHAREHOLDER – Carlos Tavares, ceo of PSA, has officially denied that there is an intention to revise the terms of the agreement of merger with FCA because of the economic crisis due to the pandemic coronavirus. It brings back an article in Automotive News where the number one of the French group, in the course of the annual general meeting of the shareholders of the PSA, has reaffirmed its no to a shareholder, Phtrust, who was asking to review the terms of the agreement due to the recession in the global automotive industry.
The TERMS ARE THOSE For Tavares, never as in this period the agreement with Fiat-Chrysler is of fundamental importance to accelerate the process of optimization and savings on your costs of living industrial. A concern is unnecessary because the FCA has just received the ok for a loan of 6.3 billion euros supported by the Italian government, while the budgets of the French group are at the moment holding up well to the sudden economic collapse. Tavares has also added that you need to be serious professionals: PSA has signed an agreement that is balanced and satisfactory to both parties. And in a difficult time like this it would not be fair nor appropriate to change the cards on the table.
It will BRING GREAT SAVINGS In the course of the assembly, Tavares added that the agreement will bring great benefits in the long term: in the next ten years and maybe even more of these synergies will result in huge benefits to the two groups. By the fourth year, says Tavares, these synergies will enable a net gain of € 3.7 billion, a sum that for a large part will come from savings due to the use of common platforms.
THE EU IS NOT A PROBLEM – Tavares he added that 25 teams, representing 500 manager of the PSA, are working on the merger with FCA, while he minimized the consequences of the possible measures that the antitrust of the EU in the sector of light commercial vehicles. It is not a problem, he says, because at least 10 of the 20 dossiers submitted by the antitrust authority have already been approved in the EU.