Fiat, PSA merger hits EU roadblock, may need concessions

New Fiat Panda and Fiat 500 mild-hybrid cars are seen in piazza Maggiore, in Bologna, Italy. REUTERS

Fiat Chrysler’s planned $50 billion merger with Peugeot maker PSA has hit a bump after EU regulators voiced concerns about the companies’ market share in small vans, indicating concessions may be required, sources said.

Fiat and PSA, which are seeking to create the world’s fourth biggest carmaker, were told of the European Commission’s concerns last week.

If the two companies fail to dispel those concerns in the next two days and then decline to offer concessions by Wednesday, the deadline for doing so, the deal would face a four-month investigation once the preliminary review ends.

The EU competition enforcer, which has set a June 17 deadline for concluding its preliminary review, declined to comment. Fiat and PSA also declined to comment.

Fiat Chrysler and PSA already produce most of their vans through a joint venture called Sevel, which is based in Atessa, Italy, and is Europe’s largest assembly plant for vans, producing 1,200 units a day before interruptions due to the coronavirus.

Hiving off overlapping businesses, usually a regulatory demand to ensure more competition, could prove tricky for the carmakers because of the technicalities.

Fiat and PSA are looking to merge to help offset slowing demand and shoulder the cost of making cleaner vehicles to meet tougher emissions regulations.

The deal puts under one roof the Italian carmaker’s brands such as Fiat, Jeep, Dodge, Ram, Maserati and the French company’s Peugeot, Opel and DS. (REUTERS)

Related post

2022 KTM Adventure 390 launched in India

KTM has officially revealed the updates on the Adventure 390. The all-new 2022 Adventure 390 comes with major upgrades to the bodywork and features, such as the addition of two-mode traction control: street mode and off-road mode.

Read More

TVS Ntorq 125 XT launched in India

TVS Motor Company has launched its new scooter–the Ntorq XT–in India. The newly launched scooter is the company’s most expensive model in its Ntorq-125 series. The XT is based on Ntorq’s disc brake variant, but comes loaded with new features and technology. The scooter has been launched in India at a starting price of INR 1.03 lakh.

Read More

Ioniq 5, Kia EV6, and Taigun nominated for the 2022 World Car Awards

The Hyundai Ioniq 5, Kia EV6, and Volkswagen Taigun have all made it to the 2022 World Car Finals in their respective categories. The Ioniq 5 has been nominated in three different categories, the EV6 in two, and the Taigun in one.

Read More

GWM Haval H6 earns five-star ANCAP safety rating

Great Wall Motor’s (GWM) HAVAL H6 has received high scores in the rigorous Australasian New Car Assessment Program (ANCAP) crash test,

Read More

Komaki debuts in Nepal with two electric scooters–the Venice and the SE

Komaki Electric Vehicles, the Delhi-based EV maker, has debuted in Nepal with the launch of two electric scooter models: the Venice and the SE. Unity Trading Concern Pvt. Ltd has taken the role of distributing the Komaki Electric vehicles in the country. Design The Venice, a retro-styled scooter, comes with a circular LED headlight, LED […]

Read More

Shadow Top Brand Shadow