It’s a shame Sergio Marchionne isn’t around to see the deal unveiled by Fiat Chrysler Automobiles and French rival Peugeot, says rob1cox via breakingviews:
HONG KONG - It’s a shame Sergio Marchionne isn’t around to see the deal unveiled by Fiat Chrysler Automobiles and French rival Peugeot. The merger, to create a carmaker worth more than $50 billion, is the apotheosis of an industrial vision that Marchionne advocated for years, but never got to see play out. After more than a decade running Fiat, Marchionne passed away in the summer of 2018.
What is most remarkable about the “confessions”, especially given the new mega-merger, is the absence of any mention by Marchionne of electric vehicles or batteries. It contains a single reference to autonomous driving. Yet the research and development cost and capital expenditure required to compete in this transportation arms race only makes the argument for cost-sharing manoeuvres even more relevant today than it was a few years ago.
In the end, the deal may be better than some of the alternatives that, through fits and starts and various dalliances even when Marchionne was alive, Fiat Chrysler could have envisioned. The near-marriage earlier this year with Renault is a case in point. Financially, the annual cost-savings from that union were greater than the 3.7 billion euros that Fiat-Peugeot is promising. But taxed and capitalised, what’s on offer now is worth at least 20 billion euros to investors today.
Since taking over in late 2013, Peugeot shares have chalked up a total return of some 260%, including dividends, according to Eikon. That compares to a 28% total return for General Motors and a negative 9% performance for crosstown rival Renault. Not only did Tavares manage to steer the French company out of a ditch and through a bailout that brought Dongfeng and the French state into its capital. He also went on the offensive, purchasing GM’s European arm, Opel Vauxhall, in 2017.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Cox: Sergio Marchionne posthumously gets his dealFiat Chrysler’s $50-bln-plus merger with Peugeot culminates a journey begun by the Italian carmaker’s former CEO to reduce capacity and wasteful spending in the industry. It took some fits and starts, and dalliances with GM and Renault, but has finally come to fruition.
Lire la suite »
Cox: Sergio Marchionne posthumously gets his dealFiat Chrysler’s $50-bln-plus merger with Peugeot culminates a journey begun by the Italian carmaker’s former CEO to reduce capacity and wasteful spending in the industry. It took some fits and starts, and dalliances with GM and Renault, but has finally come to fruition.
Lire la suite »
Fiat Chrysler has been trying to merge with another carmaker for years — here's whyA merger would conclude a massive financial-engineering project undertaken by the late FCA CEO Sergio Marchionne and Fiat scion John Elkann.
Lire la suite »
Breakingviews - Just Eat bidders distracted by messy sideshowFrom Breakingviews: Unattended cooking is the leading cause of house fires. Bickering bidders for Just Eat face a similar hazard if they fail to focus on what shareholders in the food delivery group care about most: a better offer, says KarenKKwok:
Lire la suite »
Chrissy Teigen Gets Real About Dealing With Anxiety as a Celebrity MomChrissy Teigen is undoubtedly the queen of honesty, and we’re here for it.
Lire la suite »
Breakingviews - GM lets short-term profit trump no-emissions goalFrom Breakingviews: GM lets short-term profit get in the way of its commitment to zero emissions
Lire la suite »