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What challenges will face the industry

14 November 2019

What challenges will face the industry

The market is demanding, so the mass launch of electric cars and vehicles with Autonomous control - is a necessary need. To start mass production of electric cars, need to invest tens of billions of euros, and such waste will be able to afford only the most leading brands in the world. Difficult financial position and led to the unification of the Italian-American Fiat Chrysler and the French group PSA.

 

7 Oct 2019 Fiat Chrysler published the terms of an upcoming collaboration, outlining the division of assets and the future of the auto giant in half. If the condition is work - the deal can be considered successful, as the automaker will be the fourth in the world after German VW, the Japanese Toyota and the French-Japanese Alliance Renault-Nissan. Presumably, the new company will produce 8.7 million vehicles per year.

 

The Chairman of the concern will be the President of Fiat Chrysler John Elkann, Executive Director - lava Groupe PSA Carlos Tavares, and the Board of Directors will be five people from each automaker. The company's main office will be located in the Netherlands.

 

Initially, Fiat Chrysler planned to merge with French carmaker Renault, however, such cooperation has not endorsed the Paris. Bruno Le Mayor, who is Finance Minister, said, “the most important thing for us, of course, the preservation of all industrial facilities in the country and the preservation of jobs” - this proves that France is pleased with the cooperation of Fiat Chrysler and the French group PSA.

 

The same positive comments left by the Prime Minister of Italy, Giuseppe Conte - “of course the government insists on assurances that production would remain in Italy, because the origins of the company here.”

 

John Elkann, who is the grandson of the late President of Fiat, stood at the head of the concern immediately after the death of the previous leader Sergio Marchionne, in the summer of 2018. After Elkann said that consolidation is the only way to remain competitive in today's automotive market.

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