While the French government is expected to press a merged company to protect the country's jobs and manufacturing base, officials from both automakers have privately concluded it won't try to block a deal. And there would be far less reason to even though it holds a 12.23% stake in the Paris-based automaker.
Tavares also led a turnaround of the Opel brand PSA acquired from General Motors in 2017. As part of the French company, it was profitable in its first year, reversing two decades of losses under GM. The insider confirmed several key details about the planned merger. While several scenarios have been discussed, including one in which PSA would acquire the Italian-American counterpart, the deal ultimately shifted to the same basic model that Fiat Chrysler and Renault intended to follow, a merger-of-equals.
But the plan announced two years ago is set to play out in a series of stages through the middle of the coming decade — and only in its final stage would products bearing the Peugeot badge be sold to retail customers. Where the merger is expected see the two companies quickly combine forces is in the area of electrified and autonomous vehicles, several insiders from both sides of the company agreed.