Fiat’s Kragujevac manufacturing plant in Serbia, which assembles the 500L minivan, could be in danger from a conclusion under a consolidated FCA-PSA.
Fiat Chrysler Automobiles and PSA Group have said they want to close processing plants on the off chance that they blend however this guarantee is probably going to go under substantial strain as the joined gathering would have to save the creation limit of just about 6 million vehicles in an easing back car advertise.
The organizations a week ago uncovered designs to make a $50 billion (£39 billion) bunch that would jump Hyundai, General Motors, Ford and Honda to turn into the world’s No.4 automaker, in view of their consolidated 8.7 million vehicles sold a year ago.
FCA and PSA would have a potential assembling limit of 14 million vehicles, forecaster LMC Automotive said. However, the industry has entered a downturn, and the European little vehicle advertises specifically, where both PSA and FCA are vigorously uncovered, is experiencing tension.
The use rate would be low at 58 percent, which would leave the gathering with right around 6 million units of extra limit around the world.
Low-volume producing plants in Europe are progressively defenseless, for example, Fiat’s processing plant in Kragujevac, Serbia, and PSA’s Vauxhall plants in Ellesmere Port and Luton, England, LMC said.
Trade guilds and lawmakers have just voiced worries about occupation misfortunes, and both France-based PSA and Italian-American FCA have precluded processing plant terminations trying to control fears.