Expect FCA-Peugeot merger plans to be ‘elephant’ in room during UAW talks

The real impact of the expected merger of Fiat Chrysler Automobiles and Peugeot will take some time to become clear, but an early test could come as negotiators for FCA and the UAW try to hammer out a new labor contract.

The announcement last week of a proposed 50-50 merger of FCA and PSA Groupe paints a broad picture of a global company intent on maintaining “significant presences” at current head offices in France, Italy and the United States, on saving money and on creating economies of scale.

At the same time, FCA and the UAW are preparing to ramp up contract bargaining as attention shifts from General Motors, where workers have already ratified a new deal following a 40-day strike, and Ford, where workers were to begin voting on their deal this week.