Italian auto manufacturer Fiat Chrysler Automobiles (FCA) and Groupe PSA, the French carmaker that owns Peugeot, have decided to merge the two companies to create what will be the world’s fourth-largest automobile manufacturer. The 50:50 merger is estimated to be worth €40 billion and will see the company generate annual vehicle sales of 8.7 million at an operating profit of around €3.7 billion, provided there are no factory closures.
This merger for Fiat Chrysler comes after a lengthy exchange of negotiations on merging with the Renault Group earlier this year, which eventually capsized after FCA cited political issues in France to be an issue that could not be circumvented. Notably, the French government is the largest shareholder in Renault.
Did you know?
Maritime shipping volumes grew just 2.7% to 11 billion tons last year, the United Nations Conference on Trade and Development (UNCTAD) said in its annual review of the maritime industry. This was less than a 4.1% expansion the year before.
“The shipping industry should be saying: ‘The cost increase is nominal, and we are saving the world!’ But, no one is talking about that.”
– Patrik Berglund, CEO of maritime freight data startup Xeneta, commenting on the International Maritime Organization’s (IMO) new sulfur emissions rules that will kick into effect starting 2020.
In other news
The auto industry is shrinking and it’s dragging down the entire global economy
Headwinds against automotive supply and demand are set to persist into 2020, as car saturation peaks in wealthier regions and sales in developing markets struggle to pick up the slack. (Business Insider)
Why supermarkets are building ‘dark stores’
America’s top supermarkets are facing a new challenge: Grocery aisles in stores aren’t suited to meet the growing demand for online orders. (CNN)
Mastercard pivots to new venture: blockchain food visibility
Mastercard will be looking to the blockchain to bring visibility to food systems and supply chain, with the integration of Envisble’s Wholechain system. (Forbes)
Electric cars could charge in record speeds thanks to a new breakthrough
Cutting the times even further could help convince consumers that electric vehicles are the way forward. (Inverse)
Flexport and SF Express collaborate on shipment visibility
Online forwarder Flexport and express delivery company SF Express are integrating their respective IT platforms to provide China-based customers with end-to-end visibility into shipments moving through the Flexport platform. (Air Cargo World)
The primary concern hovering over the impending OPEC meeting in Vienna this December is if the production cuts that were agreed upon last year will be extended or if that would be further deepened to prop up oil prices. Russia has held its cards back as usual, with the country’s energy minister not entertaining discussions on Russia’s intent, warding off the questions as too early.
However, countries like Iraq and Libya have already made their intent clear on wanting to keep producing more oil. Libya continues to remain exempt from all production cut agreements, while Iraq has frequently found itself crossing its production quota. Earlier this month, Nigeria brokered a deal with OPEC to produce more oil even if there is a consortium-wide production cut in the horizon.
Hammer down everyone!