According to PSA CEO Carlos Tavares, working groups at Fiat Chrysler Automobiles and PSA are speeding things up, trying to close the pending merger as quickly as possible despite the ongoing coronavirus crisis.
This information stems from an internal note from Tavares, as per Autonews Europe. The PSA boss also said that the working groups were speeding up work on synergies.
One reason why the two companies might want to get this deal finalized sooner rather than later, is the fact that the crisis triggered by the COVID-19 virus has pretty much wiped out all demand for new vehicles in Europe and North America, forcing carmakers to temporarily stop production, leaving them strapped for cash.
Read Also: FCA And PSA Looking To Boost Cash Before Merger
FCA recently secured a €3.5 billion ($3.78 billion) credit line in addition to existing credit facilities worth €7.7 billion ($8.3 billion). Meanwhile, the PSA Group has agreed to new credit lines worth roughly €3 billion ($3.2 billion) and is currently sitting on undrawn credit facilities that are worth about the same.
FCA has also postponed its shareholders meeting to late June.
“While the merger process is proceeding, the postponement of the AGM (annual general meeting) will raise markets’ concerns of a potential cancellation of the ordinary dividend,” signaled Intesa Sanpaolo analyst, Monica Bosio.
Since late February, FCA shares have dropped by some 45 percent, while PSA stock is down 32 percent. So while the initial plan was to finalize the merger within the next 12 months, recent developments appear to be forcing the two automotive giants to put a rush on things.
What that means in terms of an exact timetable is uncertain.
