PARIS -- PSA Group and Fiat Chrysler Automobiles have no plans to scrap any of their brands following their $50 billion merger, PSA CEO Carlos Tavares told a French television station.
The proposed combination of of the two groups would create the world's fourth-largest automaker with 8.7 million in annual vehicle sales. It would bring together 13 brands including Jeep, Ram, Opel/Vauxhall, Peugeot, Citroen, Alfa Romeo and Maserati.
Industry watchers have questioned whether PSA-FCA will need all the brands, especially since some of Fiat Chrysler's brands need heavy investments to renew their lineups and also because of the risks of brands competing against each other for sales.
"It is part of the challenge to properly manage these brands to cover the market," Tavares told BFM Business on Friday.
"I see that all these brands, without exception, have one thing in common: they have a fabulous history," Tavares said. "We love the history of car brands, it gives us a foundation on which we can project ourselves into the future. So today, I don't see any need, if this deal is concluded, to remove brands because they all have their history and they all have their strengths."
Tavares said the merged group "would indeed have a significant number of brands" but said the number would be lower than Volkswagen Group's tally.
VW Group has 10 passenger vehicle brands, if newer Chinese ones such as electric vehicle label Sihao are included.
Tavares said the companies complemented each other well geographically and in terms of technology and brands.
"There's no doubt it's a very good deal for both parties. It's a win-win," he said.
FCA derives 66 percent of its revenue from North America compared with only 5.7 percent for PSA, Refinitiv Eikon data shows. Europe remains the main revenue driver for PSA.
Tavares is seen as the architect of PSA's turnaround and is in line to take the operational helm as CEO in the tie-up.