PSA CEO Says Merger Won’t Result In Any Brands Being Let Go

The PSA Group and Fiat Chrysler Automobiles reportedly aren’t planning to ditch any of their brands.

According to PSA CEO Carlos Tavares, the PSA-FCA merger will not result in any brands being let go on either side, he said during a recent interview on a French radio station.

Yet, some people have questioned whether the two companies actually need all those brands, especially since some of FCA’s brands may require heavy investment, and/or could end up competing against PSA’s for sales, as reported by Autonews Europe.

“It is part of the challenge to properly manage these brands to cover the market,” stated Tavares on the BFM Business radio station. “I see that all these brands, without exception, have one thing in common: they have a fabulous history,” he added.

“We love the history of car brands, it gives us a foundation on which we can project ourselves into the future. So today, I don’t see any need, if this deal is concluded, to remove brands because they all have their history and they all have their strengths.”

He went on to say that the merged group “would indeed have a significant number of brands,” but that the number would still be lower than what the Volkswagen Group has.

Tavares added that both companies will target productivity improvements over time and that they are both willing to make any concessions in order to get a green light from the European Union.

“Give all the necessary regulatory approvals that need to be granted, such a deal cannot be closed in less than a year,” said Tavares, while adding that a “binding deal” should be sealed in the coming weeks.

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