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FCA and PSA sign merger agreement

Confirming an earlier rumor, PSA Group and Fiat-Chrysler Automobiles (FCA) signed a binding merger agreement to create the world's fourth-largest automaker. The partners hope to leverage the benefits of economies of scale as they develop new technologies and expand their global presence. The announcement ends FCA's years-long search for a partner, which nearly ended earlier in 2019 when it came close to merging with Renault, PSA's rival. It brings Fiat, Chrysler, Dodge, Ram, Jeep, Alfa Romeo, Maserati, Lancia, Peugeot, Citroen, DS, and Opel/Vauxhall under the same roof. That's a huge portfolio of brands that often overlap, but executives pledged to keep them all open, as well as all their respective factories as a result of the transaction. They're committed to making this big family of automakers work by building on each one's strengths, whether they're technical or regional. FCA and PSA jointly predicted they'll sell about 8.7 million cars annually around the globe, while posting an ˆ11 billion (about $12.2 million) profit. North America, a strong market for FCA, will provide 43% of its revenues, and 46% will be generated in Europe, where Peugeot's brands are doing better than ever. Together, they plan to achieve ˆ3.7 billion (about $4.1 million) in annual run-rate synergies. They'll notably have the purchasing power to negotiate a better price with suppliers, and they'll merge their research and development efforts where it makes sense to do so. Over two thirds of the group's annual volume will be built on two shared platforms. One will underpin about three million small cars annually, and the other will serve as the foundation for approximately three million compact and mid-sized cars. Details about these architectures haven't been made public yet, but a quick look at both companies' product portfolios reveals the small car will very likely come from Peugeot. Recent additions to its range, like the second-generation 208, are built on a new architecture named Common Modular Platform (CMP) developed with electric powertrains in mind. Meanwhile, Fiat is still making the cheeky 500 on an evolution of the platform found under the second-generation Panda released in 2003. The bigger architecture could come from FCA, however. The group's brands will share engines, transmissions, electric powertrains, infotainment systems, various sensors used to power electronic driving aids, and other components like wiring looms, but each one will retain its own identity.

Fiat board makes Chrysler merger official, approves $5.4B bond sale

Fiat's board of directors has officially approved the merger plan that will see the conglomerate's automotive operations merged with Chrysler into the new Fiat Chrysler Automobiles.
The plan essentially provides a road map for the structure of the new company. It includes provisions for Fiat shareholders - one Fiat share will translate to one share of FCA common stock. The new company will also include a loyalty voting structure, which will provide for shareholders of Fiat stock or those that have held FCA stock for at least three years. According to the plan, these shareholders would see their voting power double, with two votes for every share of FCA's common stock. The overall merger plan still needs to be approved by the company's shareholders.
In other Fiat-related news, the company's board has announced a bond issuance of four billion euro ($5.4 billion). The new bonds should provide the company with a degree of flexibility in refinancing debts associated with the merger plan.

Ten of the greatest Super Bowl car commercials of all time

With an average of over 100 million viewers each year, the Super Bowl always has advertisers bringing out the big guns. And for those among us who don't know the difference between a safety and a touchback, those commercials can be one of the most compelling aspects of the annual ritual. Car companies, in particular, have a long history of making the most of the huge Super Bowl audience by debuting some of the most memorable advertisements that have ever aired on television. So, in preparation for the new batch we'll be seeing this coming Sunday, here's a collection of our favorites from the past. 10. Audi – The Godfather When Audi created this homage to the quintessential gangster movie to promote its newest sports car, the company managed to make a commercial that was simultaneously funny, a little bit disturbing, and most importantly memorable. 9. Maserati – Strike This one might start out slow, but it delivers not only with the wicked sound of the third-generation Ghibli's engine, but with an interesting message about hubris in the auto industry as well. 8. Nissan 300ZX Twin-Turbo – Dream Directed by none other than Ridley Scott (Blade Runner, Alien), this dystopian spot has centers around a narrator who explains that in his dream the bad guys are unable to catch him despite their best efforts by way of street bikes, race cars, and supersonic jets. While the twin-turbocharged 300ZX car was certainly a performance powerhouse to be reckoned with in its day, the concept and execution of this one does come off a little bit campy now – but in a good way. Then again, it is a dream, after all. 7. General Motors – Robot This one is unique in that it's genuinely depressing on a profound level. Who would've thought that the simulated suicide of a lovable, anthropomorphic car-building robot who has fallen on hard times could be such a downer? 6. Nissan – With Dad Although the debut season of its new LMP1 racer didn't exactly turn out how the team hoped it would, there's no denying that Nissan's depiction of a strained father-and-son relationship that eventually leads to redemption (and the introduction of the 2016 Maxima) tugs at the heartstrings. 5. Volkswagen – Big Day A surprisingly poignant advert, this one might be low on dialogue but it certainly gets its message across. And just as the dramatic soundtrack begins to lull the viewer into a sense of security, our expectations are upended. 4.