The deal, which was first unveiled in October,
was billed as a 50-50 merger, but PSA has one
extra seat on the board and Tavares at the helm,
giving the French carmaker the upper hand in
daily management.
The executives said they expect the deal to take
12-15 months to close. It will create a company
with revenues of nearly 170 billion euros (nearly
$190 billion) and producing 8.7 million cars a
year — just behind Volkswagen, the Renault-
Nissan alliance and Toyota.
The merger is expected to yield 3.7 billion euros in
savings a year, which will be invested in “the new
era of sustainable mobility” and to meet strict new
emissions regulations, particularly in Europe.
“The merged entity will maneuver with speed
and efficiency in an automotive industry
undergoing rapid and fundamental changes,”
the companies said in their statement.
The new technologies include electrified
engines, autonomous driving and connectivity,
part of what Tavares described as ’’the transition
to a world of clean, safe and sustainable
mobility.” Both companies have lagged in
developing electric cars in particular.
No plants will be closed under the deal, the
companies said. Savings will be achieved by sharing
investments in vehicle platforms, engines and
technology, while leveraging scale on purchasing.
But the executives also said there would be
cuts. Decisions on where those will come will be
made after the deal closes.
“There is room for sharing (a) significant amount
of existing platforms and avoiding excess
investments for the future,” Tavares said.