Fiat Chrysler and Peugeot Confirm Deal to Create the World's Fourth-Largest Carmaker
Peugeot (PSA) and Fiat Chrysler (FCA) confirmed their intention to merge on Thursday, in what would be a 50-50 share swap and create the world’s fourth-largest carmaker, reports CNBC. The new company’s shares will be listed in New York, Paris, and Milan with FCA’s John Elkann becoming the chairman and Peugeot’s Carlos Tavares becoming the CEO. The proposed tie-up would reportedly create an industry behemoth with 8.7 million vehicle sales, $190 billion in turnover and a combined 400,000 employees. By vehicle sales, Volkswagen Group, Renault-Nissan, and Toyota occupied the top three spots of the world’s leading automakers in 2018, according to Statista. “Discussions have opened a path to the creation of a new group with global scale and resources owned 50% by Groupe PSA shareholders and 50% by FCA shareholders,” they said in a joint statement on Thursday morning. Read more here.
Ghosn Denies Report of Improper Use of Nissan Money
Automotive News reports that former Nissan Motor Co. boss Carlos Ghosn denied any impropriety over payments he made during his time at the automaker, following a newspaper report that Japanese tax authorities determined he used company money for private use. "Mr. Ghosn categorically denies that there was anything improper about the payments or donations at issue, all of which were made for the benefit of Nissan," according to a statement issued by a spokesman. "There is nothing new in these allegations, which arise from inquiries by the tax authorities and taxes paid by Nissan years ago," the statement said. Japan's Yomiuri reported on Tuesday the country's tax authorities had determined Ghosn used money for private use, bolstering the automaker's case that he diverted corporate funds for personal gain. The former Nissan chairman holds Lebanese nationality. He is awaiting trial in Japan on charges of financial misconduct, which he denies. Read more here.
UAW Reaches Tentative Agreement with Ford
Ford Motor Co. and the United Auto Workers have reached a proposed tentative agreement less than a week after UAW members ratified an agreement with General Motors Co., reports The Detroit News. The pace of negotiations at Ford starkly contrasts that set by General Motors Co. and the UAW. The union ratified a contract Friday with GM after a six-week strike. Ford and the UAW, which continued negotiating during the strike, began main-table talks Monday morning. They wrapped three days of negotiations after 8 p.m. Wednesday. "Our national negotiators elected by their local unions have voted unanimously to recommend to the UAW-Ford National Council the proposed tentative agreement," said UAW Vice President Rory Gamble in a statement Wednesday. "Our negotiating team worked diligently during the General Motors strike to maintain productive negotiations with Ford...Out of respect for our members, we will refrain from commenting or releasing full details of the agreement until the UAW-Ford Council leaders meet and review the details." Read more here.
Fed Cuts Rate for Third Time This Year, Signals Pause
The Federal Reserve cut interest rates for the third time this year but signaled it wouldn’t reduce them further unless the economy slowed sharply, reports The New York Times. “The current stance of [interest-rate] policy is likely to remain appropriate” as long as the economy expands moderately and the labor market stays strong, Fed Chairman Jerome Powell said at a news conference Wednesday after the conclusion of a two-day meeting. He didn’t rule out additional cuts if that favorable outlook faltered. The Fed’s policy statement also signaled a higher hurdle for rate reductions after the latest move, which will drop the central bank’s benchmark federal-funds rate by one-quarter point to a range between 1.5% and 1.75%. The Fed’s rate-setting committee had said in June, July and September it would “act as appropriate” to sustain the economic expansion. The committee said instead on Wednesday that it would monitor economic activity as it “assesses the appropriate path” of rates. Read more here.
AutoNation Helps Fight Cancer; Celebrates Waymo Partnership
On Saturday at AutoNation Tempe in Arizona, guests learned about AutoNation's commitment to defeat cancer, reports Auto Remarketing. Waymo self-driving vehicles were available for rides, and during the AutoNation customer appreciation event, residents and children who are current or former cancer patients at Phoenix Children’s Hospital and their families were among the first to ride in Waymo's fully self-driving vehicles. And at the event as part of its DRV PNK Initiative, AutoNation presented a $10,000 check to Phoenix Children’s Hospital. For every Waymo rider who has participated in the early rider program that tests early features, AutoNation is contributing $10. “We are excited to celebrate our partnership with Waymo, in addition to donating $10,000 to the Phoenix Children’s Hospital,” AutoNation chief executive officer and president Cheryl Miller said in a news release. Read more here.
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