WASHINGTON — The FCA (Fiat-Chrysler) / PSA (Peugeot Société Anonyme) merger deal was made months ago. Many thought the original deal structure would change, given current market conditions. Turns out the deal hasn't changed and Fiat Chairman John Elkann stated the details are "set in stone.” Thus, the Car Coach has learned, FCA and PSA have entered a binding agreement to create the world's fourth-largest automaker. FCA's John Elkann confirmed he expects the deal to close in Q1 2021.
But FCA has come in for criticism in Italy over a 5.5 billion euro ($6 billion) special dividend that is part of the PSA deal. Italy remains particularly concerned that FCA's local business said it was in talks with Rome and Intesa Sanpaolo over a 6.3 billion euro ($6.9 billion) state-backed loan to help cope with the COVID-19 crisis.
The current deal, however, is not subject to change. Thus, it remains a 50 / 50 merger deal between Fiat Chrysler Automobiles and PSA shareholders. More about this in the video below.
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The U.S. auto industry relies on Mexico for auto parts and components. In fact, about 40% of the parts in US-made vehicles currently come in from south of the border. There remains some concern in Mexico that both electricity generation for manufacturing and from foreign investors that provides renewable clean power both conflict with government-owned companies.
This may affect the auto industry and its green energy initiatives. At this time, companies are struggling to get online, shifting their focus to the global supply chain and away from green energy. You can learn more about this issue in the video below.
In other unrelated auto industry news...
This week two Americans, ex-Green Beret, Michael L. Taylor (59), and his son Peter M. Taylor (26) were arrested. The charges: allegedly helping former Nissan Motor Company chairman Carlos Ghosn flee Japan for asylum in Lebanon as he awaited trial on a number of serious charges. Those charges broadly include financial misconduct carried on during Ghosn's time as Nissan's chair. For his part, Ghosn claims these charges remain unfounded.
Meanwhile, the two Americans allegedly involved in Ghosn's well-planned escape could find themselves extradited from the US to Japan. The Japanese government could make that decision within 10 days or less according to the Financial Times of London and other sources. If convicted in Japan, they could face up to four years in prison. At this time, however, Japan has not yet made a formal extradition request to the US.
Meanwhile, Japan has arrested a total of ten additional individuals in that countryfor supporting Ghosn's escape. Again, more details in the following video.
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