Consolidation moves forward?

According to Bloomberg, two big car manufacturers - the PSA Group and Fiat Chrysler Automobiles (FCA) are in preliminary talks about limited cooperation (at least initially).

The main topic is a partnership, which could result in a new joint "super platform". Because the market shifts towards electrification, the new platform would, of course, include electric cars.

Other areas of interest would be investment-intense autonomous driving technologies.

Both, PSA CEO Carlos Tavares and FCA CEO John Elkann hinted recently that they looking for opportunities. PSA recently expanded its company to include Opel/Vauxhall while Fiat acquired Chrysler - partnership would result in further cost savings on volume production.

PSA and Fiat already are engaged in cooperation on light-duty vans in Europe.

Carlo Alberto Carnevale Maffe, a professor at Bocconi University in Milan said:

"No single car manufacturer alone can afford the sheer size of investments needed to develop platforms for the kind of smart, hybrid and connected vehicles that will hit the road in coming years. Talks between PSA and FCA, as well as the one by BMW and Daimler, are a clear sign that the industry needs to find a new equilibrium of competition on final products and services, leveraging on inevitable cooperation in technology development and supporting infrastructures."

Source: Bloomberg