On Monday, the European Commission gave the green light to the merger plans of the automobile manufacturers Fiat Chrysler and Peugeot. In return for approval, the two companies make a number of concessions, particularly in the light commercial vehicle market.
The French PSA houses the brands Peugeot, Citroën and Opel. The Italian-American FCA has Fiat, Chrysler and Alfa Romeo in its portfolio. Together they want to become the fourth largest automobile manufacturer in the world under the name “Stellantis”.
However, the Commission feared that competition in the light commercial vehicle market would be too restricted, including in Belgium, France and Italy, where the two companies combined would have “large” to “very large” market shares.
Light commercial vehicles
PSA and FCA therefore offered to expand a cooperation agreement between PSA and Toyota. Under the agreement, PSA will supply the light commercial vehicles for sale under the Toyota brand in the European Union. It was also promised that other manufacturers of this type of vehicle would have easier access to the new group’s repair and maintenance network.
“Access to a competitive market for light commercial vehicles is important for many self-employed and SMEs in Europe. We can approve this merger as the commitments made by Fiat Chrysler and Peugeot SA will facilitate entry and expansion into the small commercial vehicle market, ”said Competition Commissioner Margrethe Vestager in a statement.
PSA and FCA announced their merger plans late last year. The operation should be performed in the first trimester of the next year. In terms of volume, the new group will be the fourth largest automobile manufacturer in the world with the third largest turnover in the industry.