Chrysler set for the chop after FCA-PSA merger

Chrysler and Lancia are unlikely to survive with the merger between Fiat Chrysler Automobiles (FCA) and Groupe PSA, according to new reports.

The two auto giants announced this week that the merger had been approved by shareholders and that final details should be nailed down by January 16, 2021.

According to the Associated Press, and repeated elsewhere by other analysts, Chrysler is set to be axed under the newly-formed Stellantis conglomerate because of its basic line-up and lack of investment under FCA.

Famous Italian brand Lancia, which currently produces just one vehicle, the Lancia Ypsilon, is facing a similar fate.

Concerns also hang over the fate of fellow US brand Dodge.

The high-powered range of cars is set to struggle to meet the incoming Biden Administration's tougher average fuel economy standards without significant investment or the introduction of more efficient models.

Other parts of the merged business that will be under the spotlight include PSA's luxury brand DS Automobiles which, despite reportedly being profitable, only sells in low volumes with a limited presence outside France.

Forcing through widespread cuts to the new Stellantis business will be the new leader of group, Carlos Tavares, who has a track record of cost-cutting with little tolerance of ventures that don't make money.

In the future, the fourth-largest global car-maker plans to leverage its economies of scale by consolidating vehicle platforms and powertrains to save billions in engineering and manufacturing costs.

Even before the global pandemic, some analysts were predicting major job losses in Italy, Germany and the US.