The shareholders of French Peugeot car maker PSA Group massively approved on Monday morning, by a 99.85% majority, the company’s merger with Italy’s Fiat Chrysler, whose own shareholders were expected to vote in favor of the deal in the afternoon.
The outlook: Tavares’ first order of business will be to address the two car makers’ global overcapacity, and decide which plants to shut. And his other stated priority is the Chinese market, the world’s largest and most dynamic, where both Fiat and PSA have struggled. In the short term, the merged group will have to prove its independence from both the French and Italian governments, who have never hesitated in the past to intervene in their respective “national champions'” industrial affairs.
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