FCA and PSA merger, Spera (Ugl): "Workers see challenges as opportunities".

"We are pleased to learn that two giant car manufacturers, the FCA and PSA groups, have reached an agreement for the merger, joining forces to create a world leader in a new era of sustainable mobility, autonomous and connected driving. UGL expresses optimism about this important operation: our employees, our people have a common trait, that of looking at challenges as opportunities to be seized because they represent the way to make us even better in doing what we do by relaunching our Made in Italy brand, which for the o.s. continue to be reaffirmed as a priority".

This was stated by the general secretary of Ugl Metalmeccanici, Antonio Spera, commenting positively on the Fca and Psa merger for which, "the new company will be the fourth largest car manufacturer in the world in terms of volumes and the third in terms of turnover, with annual sales of 8,7 million vehicles and combined revenues of almost 170 billion euros. The group will generate annual synergies that are estimated at around 3,7 billion euros when fully operational, without plant closures as a result of the operation and with a positive net cash flow already in the first year. For Ugl it is synonymous with foresight, a long-term vision that paves the way for a new group of global size and resources. This marriage gives life to one of the main car manufacturers in the world. The new group will have a solid governance structure: John Elkann as president and Carlos Tavares as CEO. The board of directors will have 11 members, with a majority of independent directors: five will be FCA-Exor members (with chairman John Elkann) and five will be French members (with the vice chairman and the senior non-executive director). Very importantly and for the first time in global industrial history – adds Spera –, upon completion of the transaction the Board will include two members representing the workers of FCA and Groupe PSA, who will also officially represent the workers in strategic/union political operations. Tavares will also be a director with an initial mandate of 5 years. Before closing, FCA will distribute a special dividend of 5,5 billion euros to its shareholders while PSA will distribute to its shareholders the 46% stake held in the components company Faurecia. The parent company of the company will be based in the Netherlands and will be listed on Euronext (Paris), Borsa Italiana (Milan) and the New York Stock Exchange and will benefit from its strong presence in France, Italy and the USA. Volumes, profitability and technology, leading to a new, strategic evolution of the brands under certain conditions, where the Ugl sees a positive opportunity for the workers of both Groups. We are ready - concludes the secretary Spera - for the discussion between FCA and the trade unions that signed the CCSL within the process of which the official announcement of the signing of the Memorandum of Understanding is expected next Friday in Turin, to outline the guidelines of the planned merger between the two automotive groups".