Rationale Behind the Merger of FCA and PSA: An Analysis Using Platform Theory

Questions

Table of Contents
INTRODUCTION ..........................................................................................................................3
In 2020 the two car manufacturing groups FCA and PSA merged to create stellantis, one of the
largest car manufacturing group in the world. Using platform theory, analyse the rationale behind
the merger........................................................................................................................................3
About FCA and PSA ..................................................................................................................3
Platform theory: .........................................................................................................................6
CONCLUSION................................................................................................................................9
REFRENCES ................................................................................................................................10

INTRODUCTION
In the given below report, it is to be analysed that the merger between FCA and PSA has created
Stellantis which is after merger has become world's fourth largest car manufacturing company. It
is analysed in the report that the merger between the FCA and PSA are very beneficial for both
the companies specially in the situation of crises which is ongoing. The given report has also
describes about the merger and the rationale behind the merger of both the companies and how it
is beneficial for both the companies. In the given report the platform theory is to be relate in the
form so that the reason behind the merger can be analysed and the benefits of the merger is
determined.
In 2020 the two car manufacturing groups FCA and PSA merged to create
stellantis, one of the largest car manufacturing group in the world. Using
platform theory, analyse the rationale behind the merger
About FCA and PSA
The merger between PSA group & Fiat Chrysler Automobiles NV brings together the
leading French & Italian industrial empires which means that this merger is more than an
ordinary automotive deal. In early 2019, Fiat Chrysler automobiles seek a merger with Renault,
and made a provisional agreement with company but during negotiation process French
government behaviour leads to abandonment of the deal. The merger between FCA and PSA was
officially agreed on December 2019 and on December 2020 the EU commission announced its
approval on merger resulted in the world's fourth largest car makers company Stellantis (Hu,
2019) [1] . EU commission after imposing minimal remedies in order to maintain healthy
competition in the market approved this merger. The motive of this merger is to make an auto-
mobile group with sufficient funds in order to shift to electric driving and to compete with rivals
such as Toyota and Volkswagen. Stellantis is headquartered in Amsterdam, Netherlands and is
headed by Carlos Tavares, chief executive of PSU and the chairman of the company will be
John Elkann, who is FCA's chairman The focus point of analysts and investors is to how group
address the challenges of excess production capacity to woeful performance in China. Both FCA
and PSA said that the company can cut annual cost of 6.1 billion euro to 1.1 billion euro without
closing the plant.