Thursday, October 28, 2021
Fake News FCA and Subaru – complimentary merger

FCA and Subaru – complimentary merger

It’s no secret that FCA’s been on the lookout for a business partner for a while. Mr. Marchionne has hunted for a suitor for the last few years, courting everyone from GM, to VW, Hyundai and a number of Chinese prospects.

In a surprise move, Subaru’s (ex Fuji Heavy Industries) stepped up to the plate and plans to go forward with a merger of equals is underway. This association makes a Mount Fuji worth of sense if you think about it.

First, both companies’ market caps have hovered near the $30-billion mark over the last few years thus there’s no takeover in this equation per say. Secondo, both car companies’ portfolios, it turns out, are extremely complimentary. Let’s briefly break it down.

FCA’s not been able to sell remotely compact or even midsize cars in North America for what seems like forever. Fiat’s re-introduction here has more or less been a bust and if it wasn’t for the Jeep Compass and Patriot, there would be no small FCA anything on the road – they essentially own large and full-size everything however. And they do big very well, in fact producing some of the more interesting and exciting sedans and SUVs in the business.

Subaru, on the other hand, has nothing large. The 3-row Ascent SUV is expected sometime next year but sales are expected to be moderate, at least at first. Besides, there are always arguments to be made in favor of more SUVs. Otherwise, the niche but brilliant Outback is as big as it gets.

This merger then blends Subaru’s appealing compact and midsize AWD products to FCA’s trucks and large cars. Together, they cover the full gambit of product lines, matching pound for pound Toyota, GM and Ford.

There are no plans for any kind of badge engineering nor for a group name at the moment. Much like the Nissan-Renault-Mitsubishi alliance where all players retain their distinct identities, the FCA-Subaru coalition will eventually share R&D costs, platforms and technologies. This could be a very prosperous, and smart union.

Trending Now

First Lucid Air Deliveries Take place on October 30th

Lucid’s planned a Dream Delivery event surrounding these first deliveries. So far, Lucid’s received over 13,000 reservations for the Air. The Air is...

2023 Mitsubishi Outlander PHEV Boasts More Power, Improved Range

The 2023 Mitsubishi Outlander PHEV’s driving range in EV mode is estimated at 87 km or 54 miles on the WLTP cycle. More...

Hertz Boosted Tesla Stock Over $1,000 Billion

Hertz car rentals ordered 100,000 Tesla models by 2022 A valuation of over $1,000 billion places Tesla in the same bracket as Google,...

Paris will be fully accessible to cyclists in 4 years

A $174 million “plan vélo” will make the city more accessible to cyclists A second act will cost $290 million Changes will prioritise...

Tesla Bumps up Model 3 and Model Y Prices in Canada

Two of the most popular Tesla models saw their price increase without notice The Tesla Model 3 SR+ now costs $2,000 CAD more ...
Previous articleTDI dead? Not quite.
Next article14” is the new 21”

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.