New PSA-Fiat Chrysler management to try to improve cost savings

epa07960246 (FILE) - Signage of Italian-US car manufacturer FCA, Fiat Chrysler Automobiles, in Frankfurt am Main, Germany, 04 May 2018 (L) and PSA Group signage in Paris, France, 06 March 2017 (reissued 30 October 2019). Reports on 30 October 2019 state the European car manufacturers PSA Group and Fiat Chrysler Automobiles FCA are engaged is talks discussing a merger that would create a global automobile manufacturing giant valued at more than 44 billion euro. EPA-EFE/MAURITZ ANTIN / CHRISTOPHE PETIT TESSON

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The value of the cost savings announced in the planned merger between Peugeot owner PSA and Fiat Chrysler is nominal and management will target improvements over time, PSA’s chief executive told French BFM Business radio on Friday.

CEO Carlos Tavares also said he does not see the need to scrap any brands within the new PSA-Fiat Chrysler entity.

The two carmaker groups are targeting annual cost savings of 3.7 billion euros ($4.09 billion) as part of a planned merger unveiled at the end of October, which will create the world’s fourth-largest automaker with 8.7 million in annual vehicle sales.

Tavares also said the two groups are willing to make all necessary concessions to get a green light from the European Union.

A source familiar with the matter told Reuters on Saturday that Fiat Chrysler and PSA aim to sign a final merger agreement as early as the beginning of next month.

Via Reuters

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