Blog: Dave LeggettMischievous Marchionne?

Dave Leggett | 13 April 2010

I wonder what they make of Sergio Marchionne's latest reported comments over at PSA? Fiat's talkative supremo is highlighting PSA as ripe for another merger attempt after the MMC tie-up unravelled. He has a point. PSA is, on Marchionne's platform-scale analysis, too small to survive on its own.

PSA's record of selective collaborations on engines and certain vehicles (like the Sevel LCVs JV with Fiat) might not be enough going forward. Arguably, tougher conditions in the industry mean that it still needs a deeper strategic partnership with another firm in order to take more cost out, get greater scale economies and extend international presence.

Who might make a suitable partner then? Well, there's a car firm based in Turin led by a guy putting an alliance together that is also still short of the required volume for survival...

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