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PSA shares rise following FCA's breakup with Renault

Shares in Groupe PSA, parent company of automakers Peugeot, Citroen and the DS brand, rose on Thursday as analysts considered the possibility that Fiat Chrysler could turn back to PSA after withdrawing its $35 billion merger offer for Renault. "Both parties have acknowledged the need for scale or [mergers and acquisitions] and may pursue other opportunities. If Nissan was an obstacle (to an FCA-Renault deal) PSA-FCA discussions could resume," wrote brokerage Jefferies. Back in March at the Geneva Motor Show, rumors started swirling that PSA was interested in a potential merger with FCA. Mike Manley, who took over at the helm of Fiat Chrysler following the death of Sergio Marchionne, had indicated a willingness to look into potential partnership options. Of course, that was all before FCA proposed a merger with Renault — with that deal now off the table, attention naturally turns back to PSA, which is also based in France. "We expect both shares to react negatively but see FCA having wider strategic options and Renault shares more downside risk near-term," said Jefferies. According to Reuters, PSA shares were up 1.5% at the time this was published, making it the top-performing stock on France's benchmark CAC-40 Index. Renault saw its shares slump 7%. Shares for FCA fell 3% in early trading on the Milan Stock Exchange. Considering that FCA said in its statement confirming the withdraw of its merger offer with Renault that "political conditions in France do not currently exist for such a combination to proceed successfully," we have to wonder how keen the company is to begin negotiations with another French automaker like PSA. Those thoughts were similarly voiced by Bernstein Research analyst Max Warburton, who said (via Forbes), "Expect PSA to rise on unrealistic hopes it may be FCA's next date." Earnings/Financials Chrysler Fiat Mitsubishi Nissan Citroen Peugeot Renault FCA renault-nissan

Fiat buying rest of Chrysler in $4.35 billion deal, IPO avoided

Chrysler will now become a wholly owned member of the Fiat family, as it's been announced that the 41.46-percent stake in the Auburn Hills, MI-based manufacturer owned by the United Auto Workers' VEBA trust fund will be sold to the Italian company. Concluding the agreement will mark the closure of a piecemeal purchase process that could have resulted in an initial public offering.
The total cost of the sale will see the VEBA healthcare trust receive $4.35 billion, $3.65 billion of which will come from Fiat. $1.75 billion of that will be cash, while an additional $1.9 billion will be part of a "special distribution." An additional $700 million will be paid over four separate installments according to reports from Automotive News Europe and USA Today, although the shares will belong to Fiat following the first payment. The deal was reportedly initially struck on Sunday (though it is just being announced today), and is being portrayed as particularly good news for Fiat and Chrysler, which have now prevented the remaining shares going to the stock market in a UAW-forced IPO.
"The unified ownership structure will now allow us to fully execute our vision of creating a global automaker that is truly unique in terms of mix of experience, perspective and know-how, a solid and open organization that will ensure all employees a challenging and rewarding environment," Fiat CEO Sergio Marchionne said in a statement.

Dodge Viper production to end after 2017

We can't say we're surprised, but we're still saddened to report that the Dodge Viper will not live on past the 2017 model year. It's had a solid 25-year run, though, and that's worth celebrating. Fiat Chrysler Automobiles does just that for the Viper's final model year, with five special editions (some of which seem less special than others, admittedly): The 1:28 Edition ACR, GTS-R Commemorative Edition ACR, VoooDoo II Edition ACR, Snakeskin Edition GTC, and Dodge Dealer Edition ACR. Instead of running through what makes each of these 2017 Vipers special, we'll direct your attention to the press release below and the images above. All but the Dodge Dealer Edition commemorate memorable Viper models of the past 25 years, and the GTS-R is probably the pick of the litter with its classic blue-on-white paint scheme. Unless you prefer to err on the side of gaudy, in which case Dodge has you (and your car) covered with Snakeskin Green. If none of these special-edition Viper models strikes your fancy but you'd still like to park a 2017 Viper in your garage, fret not. Dodge is still offering its "1 of 1" customization program for the Viper's final year of production. Finally, instead of dwelling on the past, even when that past is as exciting as the Viper's, let's choose to look to the future with the only logical question left unanswered: What's next? Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.