Steel Markets
Merger for FCA and Peugeot
Written by Sandy Williams
October 31, 2019
FCA and Peugeot announced a $48 billion merger on Thursday that will make the combined company the fourth largest automaker in the world. The 50/50 merger will have combined revenues of nearly $190 billion and annual unit sales of about 8.6 million vehicles. Together the company will employ roughly 410,000 employees.
Peugeot parent PSA Group and Fiat Chrysler agreed that FCA Chairman John Elkann will be chairman of the combined company and PSA CEO Carlos Tavares will become CEO. The company will be headquartered in the Netherlands.
The merger will help fund the research needed to transition from gas-powered vehicles to electric, said Jessica Caldwell, director of industry analysis at Edmunds.
“The electrified, autonomous future everyone is waiting for just isn’t feasible without automakers merging and forming strategic alliances to share research and development costs,” said Caldwell in a comment to CNN. “This is a smart move by both Fiat Chrysler and PSA to ensure their companies continue to be viable and relevant as the industry evolves.”
FCA and PSA expect $4.1 billion in estimated annual run-rate synergies based on more efficient allocation of resources for large-scale investment and purchasing capability, and without plant closures..
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
HVAC shipments slip in September but are still trending higher
Following a strong August, total heating and cooling equipment shipments eased in September to a five-month low, according to the latest data from the Air-Conditioning, Heating, and Refrigeration Institute (AHRI).
GrafTech Q3 loss widens as electrode demand remains soft
GrafTech International’s third-quarter net loss increased from last year, with the company anticipating continuing weakness in near-term demand for graphite electrodes.
Cliffs forecasts 2025 rebound after Q3’s weakest demand since Covid
The negative impact of high interest rates on consumer behavior, particularly in the automotive and housing sectors, was the primary driver of the demand weakness seen across the third quarter, according to Cleveland-Cliffs executives.
Primetals secures long-term maintenance deals in the Americas
Primetals Technologies renewed two long-term maintenance service contracts with steel producers in the Americas.
Steel imports slip 10% from August to September
September marked the lowest month for steel imports so far this year, according to preliminary Census data released by the Commerce Department.