The French PSA and the Italian-American Fiat-Chrysler announced that in the event of a merger, the synergies released would be “without plant closure”. But a rationalization of the production tool of car manufacturers risks intervening.
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A single entity, for a common industrial device. In the event of a merger, PSA and Fiat-Chrysler will have to manage the consolidation of their factories around the world. Not a problem in the United States, since only the Italian-American manufacturer is present there, via its North American entity Chrysler. The same is true in Africa and the Middle East, where PSA sold 292,000 vehicles in 2018 thanks to a growing industrial presence, notably with the launch of its Kenitra plant in Morocco.
But the operation could be more delicate in Europe, where the two groups have a strong industrial footprint.