Which topic - inorganic growth, economies of scale, push factors?

Cuts across different topics, but which do you think is the main driver?

Fiat Chrysler and Peugeot in $50bn merger talks

A merged company would be worth about $50bn (£39bn) 


Fiat Chrysler has confirmed talks with Vauxhall owner PSA Group over a tie-up that would create one of the world’s biggest carmakers. 

The Italian-American company said on Wednesday that "ongoing discussions" were underway with PSA, the Peugeot owner, but did not give further details. The French company made a similar statement. 

A merger would create Europe’s second-biggest car company after VW Group worth about $50bn (£39bn).

The talks come just months after Fiat’s efforts to merge with PSA’s French rival Renault fell apart following resistance from the French government, which owns a stake in Renault.

The talks with Renault were abandoned amid accusations of meddling by the Paris government about how the combined business would be structured.

Carlos Tavares, chief executive of PSA – which also owns Citroen and DS – previously hinted that he was seeking acquisitions, saying earlier this year the company was “considering all opportunities". 
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In 2017, Mr Tavares led PSA’s £1.9bn purchase of the Vauxhall and Opel from General Motors. His reputation as a fierce cost-cutter has helped return the marques to profit. 
For Fiat, a tie-up with PSA would help address its lagging position in electric vehicles (EVs), with the company seen as the least advanced of the major manufacturers. 
Earlier this year it struck a “pooling” deal with Tesla, agreeing to pay hundreds of millions of euros to have the electric carmaker’s vehicles included in its fleet.
This will cut FCA’s average overall emissions, allowing it to dodge environmental penalties as emissions regulation is introduced. 
Last year PSA sold 3.9 million vehicles, while Fiat Chrysler moved 4.8 million. The world’s largest carmakers – the Renault-Nissan-Mitsubishi alliance, Volkswagen Group and Toyota – each sell about 10 million annually.

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