PSA unions agree to a planned merger of US $50 billion with Fiat

Most of the unions that represent the workers in the automotive PSA, manufacturer of Peugeot, are in favor of the $50 billion planned merger with Fiat Chrysler, executives and union representatives of the firm said.

However, the unions said that once the merger agreement is signed, they will seek to obtain detailed information on the plans the combined company will have.

At a meeting with PSA labor councils, all union representatives present voted to give a favorable opinion to the merger.

“We will remain vigilant about the social impact and hope to have a clearer and more detailed picture of the implications of the plan for the plants, the volume and how much work is given to the smelters,” said Franck Don, representative of the CFTC union.

“However, the project makes sense in the way it has been presented, because the two groups complement each other, have good financial health and, thanks to the new format, will continue to have a critical size, something that today is vital in the car business “he added.

The merger would help firms to unify resources to comply with new and tough emission regulations and invest in electric and autonomous vehicles, as well as counteract a wide slowdown in the automotive market.

Ensuring the support of powerful European unions will be essential for the resulting company, which will employ more than 400,000 people and operate hundreds of factories worldwide.

The agreement generated concern in Germany and the United Kingdom, where the plants that manufacture the Opel and Vauxhall brands have suffered layoffs in recent years, as part of a cost-cutting initiative.

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