A Fiat Chrysler-Peugeot merger better positions the combined company to make strides with electric vehicles:
stake in PSA and could lead the merger down a similar path. However, given FCA's previous experience with regulators, the companies may be able to better navigate or preempt regulatory hurdles, and likely made concessions that increase the likelihood of the merger going through.
Among the top benefits of an FCA-PSA merger are the massive potential cost savings for the newly created company. The merger is expected to result in annual savings of around , as the company can cut redundancies by combining R&D efforts and consolidating supply chains, for instance. Additionally, the combined company's larger size and higher potential sales volume would give it better bargaining power and help it strike more favorable deals with suppliers.
The merger would also better position the combined company to adapt to the changing auto industry as manufacturers invest in electric vehicles . Both FCA and PSA have
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