PSA Group’s proposed $50 billion merger with Fiat Chrysler Automobiles is moving ahead in spite of this week’s racketeering lawsuit against FCA by General Motors, a company source tells Reuters.
PSA has not commented publicly. But a company source tells Reuters that the French carmaker expects to sign a memorandum of understanding with FCA next month.
GM’s lawsuit claims it has suffered billions of dollars in damage caused by FCA paying bribes to gain more favorable labor terms from the United Auto Workers union.
Yesterday FCA Chairman John Elkann rejected those assertions as “meritless.” He reiterates that FCA and PSA expect by the end of December to sign a binding memorandum of understanding to merge.
The two companies confirmed three weeks ago that they were in fast-paced discussions and presented a detailed description of the proposed deal. The merger would create the world’s fourth-largest carmaker in terms of sales, with operations in all major vehicle markets.
According to Sandor Piszar, Chevrolet truck marketing director, “We engineer and build our trucks with customers’ expectations in mind.
For conducting business in the U.S. market, Toyota has historically had several separate business entities: a sales and distribution company headquartered in California (Toyota Motor Sales, USA); manufacturing operations (Toyota Motor Manufacturing North America); a racing subsidiary (Toyota Racing Development, USA); the Toyota Technical Center for R&D in Ann Arbor; and a design facility in California (Calty Design Research, Inc.). On April 1, 2006, Toyota merged its R&D operations and its manufacturing operations into a single company.
Ford has made an accomplishment that will never be bested, never even be tied.