The company plans to create synergies that save
“Our commitment on this merger is that we will not shut down plants as a consequence of the merger,’’ Tavares said. He pointed out that PSA Peugeot was able to turn around the money-losing Opel and Vauxhall brands within 18 months of buying them from
“I think that there’s many more things to do in our car company than just cutting costs,” he said.
He said the current brands - which range from Jeep SUVs to Alfa Romeo sports cars and luxury Maserati sedans - “represent a strong asset to the company.”
He said there was work to do on clarifying the brand identity, in some cases. And that the manufacturing synergies would be achieved through a system of “sister cars,” unique models that share some combination of platforms and components.
He claimed that fears for job losses, including in
“This merger is acting as a shield to protect the activity on the plants, rather than representing a risk for the people who may be anxious about the creation of this new entity,” he said. The merger would produce greater sales, higher efficiencies and allow the launch of new models because of lower costs due to shared technology, he said.
But he also said that vehicles have to be competitive on price and quality, and if expenses get too high, profit margins will fall and other steps may have to be taken to reduce costs. “There are moments where you can’t avoid it,” he said.
Even though vehicles sold by
He said
Tavares announced that
Krisher reported from
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