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Deal Undone:
Fiat Chrysler Renault Merger

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It was a merger of equals, bringing together automakers with a strong presence in Europe and the Americas. The deal seemed to emerge from nowhere and just as quickly it died. Whatever thoughts you had about a Fiat Chrysler Renault tie-up, it isn’t going to happen. At least not in the near future.

Fiat suddenly pulled out of the deal on Wednesday, reportedly weary of the delays it ultimately pinned on the French government. Renault itself was onboard — but the company is also partially owned by the French, thus government involvement was and is an important consideration in the manner the automaker is operated.

Fiat Chrysler Automobiles

Ghosn is Gone

Apparently, the French were waiting on Nissan’s feedback, a company allied with Renault. Although not directly involved in the merger, Nissan would have a significant say in how the alliance would continue after the merger. At first, the Japanese automaker seemed indifferent to the merger, but the French were concerned that the alliance might unravel later. Further, where Carlos Ghosn once held Renault, Nissan, and Mitsubishi together, his leadership is no longer a factor. In fact, Ghosn is in legal trouble with Nissan and that dilemma extends to the Japanese government itself.

Oh, what a tangled web we weave! (When first we practise to deceive!)

Although deception isn’t listed as one of the reasons for the failed merger (with apologies to Sir Walter Scott), a lack of trust certainly was. Indeed, the post-mortem showed much weariness on Fiat’s part in getting the French government’s approval, which again, was based on Nissan’s backing. An initial delay turned into a second delay, which soon morphed into a postponement of at least five days. That last setback was too much, so FCA officially canceled the deal.

Bigland Whistleblower Lawsuit

While all this was happening, another story emerged that might have helped scuttle the deal. On Wednesday, FCA’s head of Ram truck sales, Reid Bigland, filed a whistleblower lawsuit against his employer. This stunning development comes as the federal government continues to review the automaker’s sales figures.

In particular, the SEC noted that the company reported inflated sales, which could have an impact on investors. In his lawsuit, Bigland charged that FCA pinned the blame on him and withheld most of his compensation in 2018, in part to cover fines it attributes to the executive. The executive is seeking to clear his name and regain lost compensation, reportedly in the millions of dollars.

Bigland is also the only FCA executive to sell all his shares in the automaker. That said, CEO Mike Manley sold $3.5 million in company shares immediately after the FCA-Renault merger was announced. Exactly what the sales figures and share selling have to do with the aborted merger isn’t known, although it adds an interesting wrinkle to the story.

FCA: Moving Forward

With the failed merger now in its rearview mirror, FCA will have to address the Bigland suit and settle with the federal government. It is never a good thing when a top executive files suit, especially one from one someone so influential. Bigland is also the CEO of FCA Canada.

Besides the Bigland suit, the company must continue its focus on two core brands: Jeep and Ram. Jeep has become the company’s star player, driving sales and profits to bolster the company. The automaker plans to build a new manufacturing plant in Detroit, where it will produce a pair of full-size and upscale Jeep models.

The Ram brand is also thriving and delivers its own share of the profits. The redesigned Ram 1500 recently nudged the Chevrolet Silverado out of second place among full-size pickup trucks and continues to garner a larger slice of the sales pie.

Finally, FCA will have to plan a future without another automaker, at least not with Renault. Had it merged with Renault, it would have gained access to the French brand’s electric vehicle platform, saving the company billions of dollars. As it now stands, FCA will bear that cost alone along with the added expense of developing autonomous vehicles in-house.

See Also — Fiat Chrysler Renault Merger Talk Heightens

Peugeot Prepares for its U.S. Return

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Peugeot 2008 SUV
This Peugeot 2008 SUV may someday find its way to the U.S.

French automaker Peugeot departed the U.S. market in 1991, following years of operating in relative obscurity. Indeed, the company never sold more than 20,000 vehicles annually during its time in the states, with just a fraction of that number sold in its final years.

The automaker’s parent, the PSA Groupe, has been planning its U.S. return since 2016, although it wasn’t clear whether it would market its Peugeot, DS or Citroën brands stateside. Furthermore, the company later acquired the Opel and Vauxhall brands from GM, casting a bit more uncertainty about its intentions.

Push to Pass: Bring Us a Peugeot

We now know that the Peugeot brand is PSA’s choice for leading the company back to North America. Moreover, Peugeot’s return is part of a wider Push to Pass” plan, which was outlined this week.

The global plan includes bringing Citroën to India and Opel to Russia, while enhancing DS’s international footprint. The company is seeking to increase its non-European business by 50 percent by 2021, an ambitious undertaking that won’t include U.S. and Canadian sales. Indeed, Peugeot’s North American return won’t happen before 2026, thus the company’s initial sales thrust will depend on other markets.

Don’t expect PSA to commit to building a U.S. manufacturing plant, at least not initially. The company plans to import cars from China and Europe to meet North American capacity (including Canada), according to Automotive News. PSA CEO Carlos Tavares said the North American launch will be done in a “frugal, conservative and profitable way.”

Free2Movie App
PSA’s U.S. operation already includes this Free2Move app.

There’s an App for That

PSA’s North American headquarters is based in Atlanta. Already, the company has its Free2Move app, which tracks all the shared cars, scooters, bikes, and rides in a city. The app consolidates various car- and transportation-sharing businesses to one app, making it easier for users to find what they want. At present, the app tracks Car2Go services in Portland and Seattle and adds cycling service to Washington, DC.

PSA plans to launch a whopping 116 vehicles by 2021, including concepts. The automaker wants to reduce the average age of its product range to just 3.5 years. That’s below the industry average and could give this automaker an edge in a market where consumers want the latest models.

French, But Not Renault

Peugeot’s pending return ensures a French automaker is once again represented in the U.S. market. The company’s chief rival, Renault, doesn’t have a presence either, as it exited the market a few years after selling its AMC subsidiary (including Jeep) to Chrysler in 1987. Renault’s alliance partner, Nissan, however, is well-represented in the Western Hemisphere, including in the U.S. and Canada.

DS SUV
PSA’s premium DS brand won’t be headed to North America. At least not yet.

The Peugeot 2008 SUV might be one of the first models we see from the French automaker. It is a compact model with a 2019 starting price of about $23,500. Its current competitors include the Nissan Rogue and Chevy Equinox. In the midsize utility vehicle segment is the Peugeot 5008 SUV, which costs around $35,000. Like models include the Hyundai Santa Fe XL and the Honda Pilot.

Of course, the new vehicle market may look far different than it is today, with a host of electric and autonomous vehicles dominating the segment. Peugeot also has a fleet of cars in its arsenal, including hatchbacks and sedans. The automaker also has a line of vans, ranging in size from compact to full-size. Whatever Peugeot supplies, it will give North American consumers yet another choice in a crowded sphere.

See Also — 7 Car Brands You Won’t See in the USA Anytime Soon

Photos courtesy of the PSA Groupe.