Paris (AFP)

PSA and Fiat-Chrysler are on the way towards the creation of a new global automotive giant, a mega-merger between equals that must be done without closing a plant, but leaving the French manufacturer's employees in uncertainty .

The two manufacturers announced Thursday to have agreed unanimously on the principle of a merger, where the shareholders of both groups would share 50/50 capital, after various financial transactions.

The same concern for parity on the board of directors: five members would be appointed by Fiat-Chrysler, five by PSA, the eleventh being Carlos Tavares, current boss of the French manufacturer who would become general manager of the new group. John Elkann, president of Fiat-Chrysler, would take the lead.

The final agreement could come "in the coming weeks," according to their joint statement.

With 8.7 million vehicles sold per year, the new entity would be based in the Netherlands but would remain listed in Paris, Milan and New York and become the world's No. 4.

FCA would distribute in particular to its shareholders a special dividend of 5.5 billion euros, while PSA would give his own 46% of shares in the equipment manufacturer Faurecia.

In factories of the French manufacturer, the employees welcomed the news without enthusiasm but without worry either.

"With a bit of luck ... it will make us a car and more to do.There may be more interim, but cons I do not think there will be more hires: here they no longer hire, "said Catherine, employee of the Sochaux plant in the Doubs in France.

Same uncertainty for Arnaud, operator on a PSA site near Rennes. "We'll see more ... Of course, people wonder, we do not know what's going on, we never know what's going on," he says.

- Netherlands -

For now, the French State, a 12% shareholder of PSA, welcomes the idea of ​​a merger with kindness. During other engagements as spectacular as quickly aborted in the spring, this time between Fiat Chrysler and Renault Nissan, Paris - also shareholder - had on the contrary braked.

"I prefer to see Peugeot continue to develop, become today the fourth largest car manufacturer worldwide with Fiat rather than being outside of this movement of automobile consolidation that is absolutely essential," said the Minister of Economy, Bruno The mayor.

"If there are economies of scale (to be achieved), all the better, both groups will benefit, but the important thing is to guarantee the level of employment and investment here in Italy," said the chief from the Italian government Giuseppe Conte to the Italian Agency AGI.

Both groups ensured that "no plant closures" were planned.

"The same promise was made during the acquisition of Opel Vauxhall in 2017 and it was held," said AFP Patrick Michel, secretary Force Ouvriere - the first union at the manufacturer - the world group committee at PSA.

Unions, on the other hand, are unanimous in criticizing the choice of the Netherlands: a "tax scheme" according to the CGT, a "facility" for FO.

On the other side of the Rhine, the metallurgical union IG Metall remains on the defensive as to the "independence" and "identity" of the Opel brand. Just like the Vauxhall Workers Union in the United Kingdom, which calls for an emergency meeting.

On the stock market, the shares of the two manufacturers had opposite fortunes: in Milan, Fiat Chrysler jumped 8.56% to 13.93 euros, while Paris PSA unscrewed 12.86% and finished 22 , 70 euros.

"The market capitalization of Peugeot is greater than that of Fiat Chrysler.With a merger to 50/50, it is actually Peugeot that technically bought Fiat (...) .The market therefore takes into account this situation," observed from AFP Daniel Larrouturou, equity manager at Dôm Finance.

- A well matched couple? -

PSA and FCA have estimated at 3.7 billion euros the savings of resources generated by their merger, for a company whose consolidated turnover is estimated at 170 billion euros.

The couple wants to match well. "PSA and Fiat-Chrysler know each other very well and their relationships are excellent, which has allowed us to move quickly to this stage." Studying this partnership is fully consistent with our long-standing need to strengthen our connected industry ", said Mike Manley, FCA's managing director.

According to experts, PSA brings its expertise in terms of vehicle electrification, at a time when manufacturers have to adapt to harsher pollution standards. FCA offers its gleaming Alfa Romeo or Maserati.

The merger would also allow the French to return to the US market thanks to the Dodge and Jeep of his ally, while FCA consolidate its positions in Europe, where it is losing momentum. The Italian-American manufacturer announced Thursday a net loss of 179 million euros in the third quarter and a decline in sales.

© 2019 AFP