Blog: Dave LeggettRenault and PSA?

Dave Leggett | 11 March 2009

The markets are still all over the shop as investors and analysts grapple with the economic/financial crisis and what it will ultimately mean for industries and corporations. And you have to wonder about the herd mentality at work when markets everywhere pick up on the back of a two-month profit at Citigroup.

Are Renault and PSA getting together? Things would have to be really bad before that would be sanctioned as a full-blown merger in Paris. Job losses would inevitably be high, so that outcome would have to look better than the pair of them staying independent. No, I don't think we're quite there yet, though they might be looking at selective collaborations. This recession is bringing rivals closer together where there are cost savings to be had but no danger of compromising competitiveness or brand DNA (like BMW and Daimler on components purchasing).

But I can see why some people would spin the Renault-PSA merger story and how it could sound very plausible. And I expect they are busy selling stock as I write.

FRANCE: Renault and PSA shares spike on merger speculation


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