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business Monday 4 January 2021
Cuts likely as Fiat Chrysler-PSA tie-up nears approval

By COLLEEN BARRY and lar Jeep brand and Ram
TOM KRISHER pickup, are hugely profit-
AP Business Writers able and likely will be left
MILAN (AP) — While run- untouched for a while, Brin-
ning Nissan’s North Ameri- ley said.
can operations from 2009 Tavares just three years ago
to 2011, Carlos Tavares had stated his desire to sell PSA
a reputation for closely vehicles in the U.S. within a
watching costs with little decade. He said any glob-
tolerance for vehicles or al automaker has to sell in
ventures that didn’t make the U.S. market.
money. In December the compa-
Experts say that means Ta- nies announced that Fiat
vares, currently the head of Chrysler CEO Mike Manley
PSA Group, is likely to follow would run Stellantis’ opera-
that blueprint when he be- tions in the Americas.
comes leader of a merged Larger Jeep and Ram
PSA and Fiat Chrysler Auto- trucks and SUVs are unique
mobiles. The low-perform- to the U.S. and generally
ing Chrysler brand might don’t sell well in Europe, so
get the axe as could slow- Brinley expects those to be
selling cars, SUVs or trucks designed by Fiat Chrysler
that lack potential. in Auburn Hills, Michigan,
Already the companies are In this Wednesday, Feb. 26, 2020 file photo, CEO of PSA Groupe Carlos Tavares arrives for the north of Detroit. Eventually
talking about consolidat- presentation of the company’s 2019 full year results in Rueil-Malmaison, west of Paris. some cars and some small-
ing vehicle platforms — the Associated Press er SUVs, though, will move
underpinnings and power- Shareholders of both com- Stephanie Brinley. Europe and electric technology to PSA underpinnings, she
trains — to save billions in panies are to meet Mon- has been a money-loser for up to speed. Fiat’s Italian said.
engineering and manufac- day to vote on the merger FCA, and factories in Italy capacity stands at 1.5 mil- PSA has a wider array of fu-
turing costs. to form the world’s fourth- are operating way below lion vehicles, but only a few el-efficient smaller engines,
That could mean job loss- largest automaker, to be capacity — a concern for hundred thousand are be- and Fiat Chrysler will need
es in Italy, Germany and called Stellantis. The deal unions, given Fiat’s role as ing produced each year. those to meet government
Michigan as PSA Peugeot received EU regulatory ap- the largest private sector Most factories were on roll- fuel mileage and pollution
technology is integrated proval just before Christ- employer in the country. ing short-term layoffs due requirements worldwide.
into North American and mas. “We are at a crossroads,’’ to lack of demand, even The PSA Group’s goal is
Italian vehicles. Tavares, who for years has said Michele De Palma of before the pandemic. to offer its all models with
“You can’t be cost efficient wanted to sell PSA vehi- the FIOM CGIL metalwork- The merger is likely to also electrified powertrains by
if you keep the entire scale cles in the U.S., won’t take ers’ union. “Either there is a hit white collar workers, as 2025, an area where Fiat
of both companies,” said full control of the merged relaunch, or there is a slow Tavares is unlikely to keep Chrysler also has lagged.
Karl Brauer, executive ana- companies until the end of agonizing closure of indus- engineering centers in Par- Analysts say the Chrysler
lyst for the iSeeCars.com January at the earliest. try, in particular the auto is, Turin and Rodelsheim, brand could be in jeop-
auto website. “We’ve seen He likely will target Europe industry, in Italy.” Germany, where the Opel ardy in the U.S., where it
this show before, and we’re for consolidation first, be- Italy’s hopes lie with the brand he acquired in 2017 has only two models, the
going to see it again where cause that’s where Fiat ve- luxury Maserati and sporty is located, according to aging 300 sedan and the
they economize these plat- hicles overlap extensively Alfa Romeo brands, but analysts. Pacifica minivan. U.S. sales
forms across continents, with PSA’s, said IHS Markit De Palma said investments FCA’s North American op- of the brand were off 19%
across multiple markets.” Principal Auto Analyst are needed to bring hybrid erations, led by the popu- through October.q
China warns of retaliation for NYSE’s delisting of companies

BEIJING (AP) — China said Donald Trump issued on details on what the mea-
Saturday that it would take Nov. 12 barring investment sures might be.
necessary countermea- in publicly traded compa- Under Trump, the U.S. has
sures in response to the New nies that the U.S. govern- stepped up economic
York Stock Exchange’s an- ment says are owned or sanctions and travel bans
nouncement that it would controlled by the Chinese against Chinese compa-
delist three major Chinese military.“China opposes the nies, government officials
telecoms, in the latest flare- Americans from abusing and Communist Party
up of tensions between national security by listing members, especially re-
Beijing and Washington. Chinese companies into cently in Trump’s last few
The stock exchange said the so-called ‘Communist weeks in office.
Thursday that it would delist China Military Companies’ In December, the U.S. an-
China Telecom Corp. Ltd., list and will take the nec- nounced plans to limit visas
China Mobile Ltd. and Chi- essary countermeasures to for members of the Chinese
na Unicom Hong Kong Ltd., resolutely safeguard the le- Communist Party and their
with trading of the com- gitimate rights and interests family members to one People wearing face masks to protect against the spread of the
panies to be suspended of Chinese companies,” a month, instead of 10 years. coronavirus talk on their cellphones near a booth for Chinese
sometime between Jan. 7 spokesperson for the Chi- Chinese tech giant Huawei telecommunications firm China Mobile at the PT Expo in Beijing
and Jan. 11. nese Commerce Ministry has been shut out of the on Oct. 14, 2020. Associated Press
The move stems from an said in a statement. U.S. market and the U.S.
executive order President The ministry did not offer has lobbied other countries to follow suit, albeit with mixed results.q