There are countless factors in a merger the size of PSA-FCA. So far, everyone seems onboard.
Unions are powerful entities as we’ve seen many times. Recently, all three American brands, FCA, Ford and GM have had to work out “issues” and sign new deals with their UAW representatives. European auto brand employees are also looked after by their unions and this merger of equals cannot go ahead without their blessing.
So far so good for the PSA-FCA merger as the majority of the involved unions are in favor of this massive undertaking. This merger is big deal at an estimate value of $50 billion, or less than half of Bezos’ and Gates’ respective net worth, but the bigger element at hand is that the new company would employ over 400,000 people at hundreds of factories around the globe.
The unions are optimistic given how well the car companies complement each other on numerous levels. As such, the merger would be of equals and is encouraging but the unions want to be kept abreast of the developments.
“We will remain vigilant about the social impact and await a clearer and more detailed picture of the plan’s implications for plants, volume, and how much work will be given to the foundries,” said Franck Don, representative of the CFTC union.
“But the project in the form it’s been presented makes sense because the two groups complement each other, are in good financial health, and thanks to the new format will attain a critical size which is vital in the auto business today.”