The approval is conditional on full compliance with a commitments package offered by the companies.
To address the Commission's concerns, FCA and PSA offered the following commitments aimed at enabling entry and expansion:
- An extension of the cooperation agreement currently in force between PSA and Toyota Motor Europe (‘Toyota') for small light commercial vehicles under which PSA produces the vehicles for sale by Toyota under the Toyota brand mainly in the European Union. This will be done by way of an increased available capacity for Toyota and reduced transfer prices for the vehicles and associated spare parts/accessories. This commitment reflects the pervasive nature of platform sharing in the automotive sector; and
- An amendment of the “repair and maintenance” agreements for passenger cars and light commercial vehicles in force between PSA, FCA and their repairer networks, to facilitate access for competitors to PSA and FCA's repair and maintenance networks for light commercial vehicles. For example, no brand specific reception, waiting area or entrance will be required for FCA/PSA light commercial vehicles clients, and any prohibition on repairers to use PSA/FCA tools and equipment to service competitors' light commercial vehicles will be lifted.
The Commission found that the first remedy will enable Toyota to compete effectively with the merged entity in the relevant markets in the future.
Additionally, the second remedy will help new entrants expand and compete in the markets for light commercial vehicles. The combination of these commitments allow the maintenance of effective competition in the market after the transaction and therefore fully addresses all of the Commission's competition concerns.
The Commission therefore concluded that the transaction, as modified by the commitments, would no longer raise competition concerns. This decision is conditional upon the full compliance with the commitments. ■
A Fall heatwave will continue into the weekend over portions of the Desert Southwest and central/southern California as a persistent trend of upper-ridging over the region remains in place.