This article is from the public number:2030 Travel Lab (ID: PHD2030MRL), author: San Antonio small mason, mechanical engineering graduate student at Buffalo State University of New York in reading. Main research areas: dynamics, control and mechatronics. The title map is from: Visual China, original title: “Magic Realism – FCA & PSA AllianceCome to guess”
From May 27, 2019, FCA CEO McCain’s letter on “FCA and Renault Automotive Group will merge” to October 30, 2019, PSA Group on “PSA Group and Fiat The Chrysler Group is in the process of “merging and discussing”, and on October 31, 2019, “the joint announcement of the Peugeot Citroen Group and the Fick Group”, in just five months, involved the three companies that merged the overall situation. They have experienced ups and downs like a roller coaster.
In the automobile industry where both the crisis and the opportunity existed, in 2019, whether it was the employees of the three companies or other people in the industry, it seemed to be a good show of “If You Are the One”. Regardless of the outcome, this node in 2019, for both parties, this is a win-win attempt. And for Renault, it may have missed one or perhaps a few opportunities to reinvent itself in the midst of dramatic changes in the industry.
When FCA and PSA officially succeeded, the world’s fourth-largest automaker was born, second only to Volkswagen, Toyota, and Nissan-Renault. When FCA and PSA officially succeeded, the car group with 16 sub-brands was born.
There are 16 sub-brands. If you use a classic line to describe such a scene, I think it should be the sentence: “I have never played such a wealthy affair with Li Yunlong.” As two car manufacturers with small personality and regional influence enough, their merger has made us think about the future of the new alliance. After all, when Peugeot, Citroen, DS, Alfa Romeo, Jeep, DODGE, Maserati and other distinctive brands are under the same banner, how can you not expect them from their future products?
Status of the two companies:
The PSA Group’s operating income in 2018 was to reach 74 billion euros, up 18.9%, the group’s recurring operating margin reached 7.7%, and recurring operating profit was 5.689 billion euros, net profit. It was 3.295 billion euros, an increase of 40.4%. The group’s sales in 2018 reached 3.88 million units, an increase of 6.8%. Even Opel and Vauxhaul, which ran into the bottom of GM, can also make a return to contribute a profit of 900 million euros.
The FCA Group sold 4.82 million units worldwide in 2018, an increase of 2%. At the same time, both revenue and profit increased, with a net profit of 3.6 billion euros, an increase of 3%. The North American market accounts for 55% of the group’s total sales in 2018, it is also the main source of revenue, accounting for 63% of total revenue. This is mainly due to the rapid growth of Jeep and RAM. The Jeep brand has increased by 17% in the US market in 2018, to reach 970,000 units.
In terms of financial status and sales, the performance of the two companies in 2018 is considered to be remarkable. But at the same time, it relies heavily on a single market. Let me talk about FCA first:
North American Free Trade Zone revenue reached a record 6.2 billion euros, an increase of 19%, and a profit margin of 8.6%;
The income of Latin America is 400 million euros, an increase of 138%, and the profit margin is 4.4%, an increase of 250 basis points;
Europe, Middle East and Africa is 4100 million euros, down 45% after poor performance in the second half;
The performance in the Asia Pacific region is low, mainly due to poor performance in China, and Maserati has also been seriously affected in China.
For the PSA Group, 3.1 million of the 3.87 million sales in the year came from the European market, while the remaining three markets in Latin America, the Middle East and Africa, China and Southeast Asia fell by 15%, 52.8% and 32.2 respectively. %.
two bases – US and European markets:
For the future of FCA and PSA, North America and Europe remain two important bases. In the future, the products of the former FCA will remain the mainstay, but the products of the PSA Group will return to the US market with the help of the alliance.
Carlos Tavares, former CEO of PSA Group and soon to become CEO of the combined alliance (Carlos Tavares) In February of this year, PSA will return to the United States with its Peugeot brand, and hopes that this can begin in 2026. (PSA will re