Tavares Touts Compatibility in PSA-FCA Merger
PSA Group CEO Carlos Tavares says merging with Fiat Chrysler Automobiles will create a company large enough to pay the cost of electrification and tighter emission limits.
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The planned merger between PSA Group and Fiat Chrysler Automobiles NV will create a company large enough to bankroll the cost of electrification and tighter emission limits, says PSA CEO Carlos Tavares.
He tells Automotive News Europe that the two companies complement each other well in terms of technology and market presence. As partners, he adds, the carmakers should be able to reverse their separate poor performances in China.
Tavares says the key to managing the merged companies will be a merit-based system that chooses leaders based upon their ability to deliver results for the combined entity. He insists that layoffs aren’t likely because the new company will have such a “high level of things to be achieved.”
Tavares favors a three-dimensional approach to decision-making for the merged companies that mimics PSA’s method. He describes the technique as reviewing issues across three axes: regions, brands and functions. He also emphasizes the matrix must be able to accommodate differences in the way people operate and express themselves.
If you “lock” the matrix, he warns, it will fail because people cannot be forced to all think and act the same way. In the end, Tavares says, the key to success will be to focus on the company rather than a brand, region or function.
Dan Nicholson is vice president of General Motors Global Propulsion Systems, the organization that had been “GM Powertrain” for 24 years.
The little car that could still can. And this time as a car that not only gets great fuel economy, but which has ride and handling that makes it more than an econo-box (and its styling is anything but boxy).
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.