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Automobile: PSA-Peugeot and FCA-Fiat-Chrysler merger seen from Italy

In Italy, the merger agreement between PSA (Peugeot, Citroën in particular) and FCA (Fiat Chrysler) to form the 4th world automobile giant is welcomed by employers and the government. But it raises some perplexities within the unions, whose representatives will be received by the management of FCA this Friday, December 20 in Turin.

From our correspondent in Rome,

Are the nuptials between French and Italian-American car manufacturers considered an opportunity that could be useful to all?

We observe that the press, general or specialized, hails the merger between PSA and Fiat Chrysler Automobile above all as " a crucial pole for innovation and development " in the automotive sector. In particular for hybrid, electric and connected vehicles.

In addition, so far, Italian politicians have shown little interest in alliance projects, including the failed one between Fiat Chrysler and Renault. But this time, the head of government, Giuseppe Conte, granted a river interview to the Turin daily La Stampa .

For him, " this merger which values ​​synergies is important for the whole European economy ". Among the political parties, only the Nationalist League of Matteo Salvini is very critical, because the president-elect of the group is the boss of PSA, Carlos Tavares.

For employers, the agreement is seen as a great operation, from a strategic point of view. In France, on the other hand, the unions are questioning the maintenance of the level of activity of the production sites and the evolution of employment.

How are Italian unions reacting?

The heads of the metalworking branch of the unions, who will be received this Friday by the management of Fiat Chrysler in Turin, will ask above all for guarantees for the 199,000 jobs in Italy. Especially since the sites operate at around 60% of their capacity. Which is objectively worrying.

But large trade union organizations, such as CGIL, the General Confederation of Italian Workers, welcome the new model of governance. This provides for two employee representatives from PSA and FCA on the board of directors. CA of which John Elkann, 43, president of the Italian-American group, and inheriting the Agnelli family, will take the lead.

What are the first challenges for FCA?

According to industrial economics expert Giuseppe Berta, a professor at Bocconi University in Milan, Fiat Chrysler must " invest more, and quickly in cars and electric batteries ".

Currently, the production of these vehicles, like the electric version of the Fiat 500, which will be on the market in summer 2020, is limited to 1.3% of the total in Italy. To avoid closing sites, FCA should also revitalize two historic brands, Alfa Romeo and Maserati, which have been neglected for too long. In other words, a new industrial vision is needed for a good marriage with PSA.