Blog: Dave LeggettGrab your partners

Dave Leggett | 22 January 2009

Are we about to enter a rapid phase of industrial consolidation as auto firms prepare for much lower volumes? There's speculation that Fiat has its eye on PSA. A Fiat-PSA-Chrysler combine would certainly be quite an alliance. There is considerable overlap between Fiat and PSA - product and market geography - which could produce considerable product development cost savings in addition to straight scale economies and Renault-Nissan style savings in parts procurement. Chrysler is more about synergistic gains. 

Marchionne has perhaps watched Carlos Ghosn's alliance and concluded that's the way to go. Add an Asian OEM and he's potentially got the full house. Mr Ghosn might well be a bit miffed that he's - apparently - been beaten to Chrysler and the North American piece of his grand alliance jigsaw is still missing. Mind you, he could always approach General Motors again and the political backdrop to an alliance overture might be a lot more favourable now than it was a few years ago, when he was egged on by Kerkorian...  

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