Peugeot Expanding Their Horizons?

Photo by: Olena Sergienko

Peugeot, After Digesting GM’s Europe Business, Set Sights on Fiat Chrysler

Analysis by Zohair Mirza

A French automobile company, Peugeot, recently approached Fiat Chrysler Automobiles to be bought out. The process of combining these two established companies is projected to create a $45 billion industry. If this buyout is to happen, it will reposition  Peugeot's business in Europe and in the U.S.

So far, Fiat Chrysler has rejected Peugeot's offers.

If Fiat Chrysler decides to raise the price for their company it will be difficult for Peugeot to match it considering they overtook Opel recently in 2017. The purchase of Opel has left Peugeot financially pressed and in this time of an innovation-minded era, it will be difficult to place their resources on both ends.

If we are to see this deal go through, this could be the deal that can reignite Peugeot's market in the United States. Since Fiat Chrysler has a set market in both the U.S. and in Europe it will mean all of their business is now Peugeot's. Further branding and marketing set for these new cars will have to be immediately competitive and their pricing has to be mostly sales oriented.

It is at the moment a high-risk deal as it will give Peugeot financial setbacks but if correctly executed this could be a changing moment in Peugeot's history.