The car manufacturers PSA and FCA are authorised by Brussels to merge, because Peugeot mother PSA would be willing to transfer the production capacity of vans to Toyota.
That reports Reuters news agency based on sources. With the merger of PSA and FCA to the merger name Stellantis, the worlds fourth largest automobile manufacturer is created with the brands Peugeot, Citroën, DS, Opel, Fiat, Chrysler, Jeep, Dodge, Ram and Maserati.
However, the European Union opposed this merger because the new company would gain too much power in the vans market. The transfer of the production of vans from PSA to Toyota Japan would have addressed the concerns of the cartel authorities. PSA already has a joint venture with Toyota in the field of vans.
When the EU really gives consent is not yet clear. Brussels has until 2 February 2021 to decide on the marriage between the French and Italian-American car manufacturer. However, the two indicated that they wish to complete the merger in the first quarter. The merger hung by a thread earlier this year, because due to the corona outbreak the stock market value of the two has evaporated to a large extent.
PSA and FCA had already planned to merge into Stellantis a year ago, saving €5 billion in costs each year. This is going to be a hell of a job, because these savings must be made under pressure from the French Government without closing down factories.