PSA, FCA must confront excess China capacity under merger

PSA Group and Fiat Chrysler Automobiles, in hatching plans to merge and create the world’s fourth-largest automaker, say they will not close factories.

They can probably keep such a promise in most markets, but not with China.

PSA and FCA each operate joint ventures with local peers in China, but all of the partnerships are in dire need of restructuring and downsizing.