12 / 01 / 2010

1. Alliance PSA Chrysler 12 / 01 / 2010 Pablo MARTINEZ – Emilie GLERANT – Christophe BURGUN – Benoît ROJARE – Charles FREMONT – Philippe MERVEILLE – Wyclief LASSEY – Flore LAFARGUE

2. Sommaire • Les Fusions par absorption • Présentation de Peugeot (aux environs de 1978) • Présentationde Chrysler Europe (aux environs de 1978) • La tentative de fusion par absorption de Peugeot sur Chrysler d'après l'expérience de Mr Happe • Cas de l'alliance entre PSA et Mitsubishi 12 / 01 / 2010 Pablo MARTINEZ – Emilie GLERANT – Christophe BURGUN – Benoît ROJARE – Charles FREMONT – Philippe MERVEILLE – Wyclief LASSEY – Flore LAFARGUE

3. I. Les Fusions par absorption 1. Le cas PSA / Chrysler PSA Peugeot Citroën est né de la réunion, en 1976, de Peugeot et de Citroën puis de la fusion par absorption, en 1978, de Chrysler Europe (deviendra Talbot). 12 / 01 / 2010 Pablo MARTINEZ – Emilie GLERANT – Christophe BURGUN – Benoît ROJARE – Charles FREMONT – Philippe MERVEILLE – Wyclief LASSEY – Flore LAFARGUE

4. I. Les Fusions par absorption 2. Qu’est ce qu’une fusion-absorption? Définition: Opération par laquelle une société dissoute transmet à une société existante ou nouvelle, son patrimoine entier, actif et passif compris. • Conséquences: • Dissolution de A • Augmentation de capital de B • Echange de droits sociaux (associés de A deviennent les associés de B) • Soulte: rémunération des apports de A 12 / 01 / 2010 Pablo MARTINEZ – Emilie GLERANT – Christophe BURGUN – Benoît ROJARE – Charles FREMONT – Philippe MERVEILLE – Wyclief LASSEY – Flore LAFARGUE

5. I. Les Fusions par absorption 3. Objectifs • Améliorer ses parts de marchés face à un concurrent • Acquérir une taille critique • Acquérir des savoir-faire complémentaires à l’activité de l’entreprise • Economiser des coûts de production • Ex: Composants en commun à 2 véhicules • Simplifier la coopération entre deux sociétés en créant une structure unique • Reprendre une entreprise en difficulté et lui permettre de survivre • Ex : PSA rachète Citroën 12 / 01 / 2010 Pablo MARTINEZ – Emilie GLERANT – Christophe BURGUN – Benoît ROJARE – Charles FREMONT – Philippe MERVEILLE – Wyclief LASSEY – Flore LAFARGUE

6. I. Les Fusions par absorption 4. Procédure • Etablissement d'un projet de fusion • Dépôt de ce projet au greffe du tribunal de commerce • Communication dans chaque département des sièges sociaux des sociétés participantes. • Approbation en assemblée générale du projet de fusion par les associés • Dépôt au greffe d'une déclaration dans laquelle sont répertoriés les actes effectués, en conformité avec la réglementation. 12 / 01 / 2010 Pablo MARTINEZ – Emilie GLERANT – Christophe BURGUN – Benoît ROJARE – Charles FREMONT – Philippe MERVEILLE – Wyclief LASSEY – Flore LAFARGUE

7. I. Les Fusions par absorption 5. Clefs du succès • Entente entre les dirigeants des deux entreprises • Vision partagée des partenaires et de leurs avis sur l’évolution de leur secteur • Gérer avec tact l’intégration des deux structures aux cultures parfois très éloignées • Entente sur l’emplacement du siège social et la nouvelle dénomination 12 / 01 / 2010 Pablo MARTINEZ – Emilie GLERANT – Christophe BURGUN – Benoît ROJARE – Charles FREMONT – Philippe MERVEILLE – Wyclief LASSEY – Flore LAFARGUE

8. I. Les Fusions par absorption 6. Inconvénients • Opération souvent longue et coûteuse au début, de part les restructurations qu’elle implique. • Effet de synergie parfois long • Fusion n’est pas une opération courante, mais plutôt stratégique, dont les fruits sont attendus à long terme. 12 / 01 / 2010 Pablo MARTINEZ – Emilie GLERANT – Christophe BURGUN – Benoît ROJARE – Charles FREMONT – Philippe MERVEILLE – Wyclief LASSEY – Flore LAFARGUE

9. Economic situation of PSA around 1978 12 / 01 / 2010 Pablo MARTINEZ – Emilie GLERANT – Christophe BURGUN – Benoît ROJARE – Charles FREMONT – Philippe MERVEILLE – Wyclief LASSEY – Flore LAFARGUE

10. In 1973 : • PSA is a familial holding in whichthere are : • - Peugeot cycle • Peugeot Steels and Tools • Peugeot cars • Position in the french market : • - PSA benefited of the « 30 glorieuses » • 2nd french car manufacturer after Renault and followed by Citroën and Simca –Chrysler France • Two main plants : Sochaux and Mulhouse 12 / 01 / 2010 Pablo MARTINEZ – Emilie GLERANT – Christophe BURGUN – Benoît ROJARE – Charles FREMONT – Philippe MERVEILLE – Wyclief LASSEY – Flore LAFARGUE

11. In 1973 : First Oilshock • Peugeot isstillselling cars because of its Diesel cars • Citroën : completelyaffected by thisoilshock + debts-> bankruptcy • Consequences : • Michelin, first stockholder of Citroën, wants to sellit to PSA • In a first time, PSA get 38,4 % of Citroën to see the economicevolutions in 1974, and finallydecide to getcompletely Citroën, Michelin enterring the capital of PSA around 9% (expandable to 12%) 12 / 01 / 2010 Pablo MARTINEZ – Emilie GLERANT – Christophe BURGUN – Benoît ROJARE – Charles FREMONT – Philippe MERVEILLE – Wyclief LASSEY – Flore LAFARGUE

12. In 1976 - 1977 : • Increase of turnover • Great net income • Reach Renault at the first place of the french car manufacturer • 1,5 million cars produced per year •  Then, when Chrysler begin to approach PSA, everythingis made to make the alliance working 12 / 01 / 2010 Pablo MARTINEZ – Emilie GLERANT – Christophe BURGUN – Benoît ROJARE – Charles FREMONT – Philippe MERVEILLE – Wyclief LASSEY – Flore LAFARGUE

13. 1978 PSA buy Chrysler Europe : 230 million dollars for Chrysler UK and Spain PSA become the FIRST EUROPEN CAR MANUFACTURER PSA become the 4th car manufacturer in the world 1979 PSA sales : 2,5 million cars PSA net income : 48 billion francs 12 / 01 / 2010 Pablo MARTINEZ – Emilie GLERANT – Christophe BURGUN – Benoît ROJARE – Charles FREMONT – Philippe MERVEILLE – Wyclief LASSEY – Flore LAFARGUE

14. HISTORY OF CHRYSLER EUROPE • It was the European division of American Chrysler, who was active between 1967 and 1979, although their vehicles were sold with Chrysler until 1981, and thereafter to be owned by Talbot and PSA Group. • Between 50 and 60, Chrysler decided to address the global expansion, as for example Ford and General Motors, which already had a solid base in Europe. 12 / 01 / 2010 Pablo MARTINEZ – Emilie GLERANT – Christophe BURGUN – Benoît ROJARE – Charles FREMONT – Philippe MERVEILLE – Wyclief LASSEY – Flore LAFARGUE

15. In 1958, Chrysler began to buy significant stakes: • The French company, Simca, in 1963. • The Spanish company, Barreiros, in 1967. • Also it bought the British company, Rootes.  The aim was to take total control of both and the sum of these companies resulted in Chrysler Europe. • The financial situation of the U.S. company had deteriorated sharply during the '70s, which led the company to divest its European subsidiary that was sold to PSA for the symbolic price of 1 dollar in 1978.  The agreement included the maintenance of the Chrysler brand until the end of 1979. From that date the vehicles were renamed Talbot, mark owned PSA. 12 / 01 / 2010 Pablo MARTINEZ – Emilie GLERANT – Christophe BURGUN – Benoît ROJARE – Charles FREMONT – Philippe MERVEILLE – Wyclief LASSEY – Flore LAFARGUE

16. THE MARKET OF CHRYSLER EUROPE: • The first model of Chrysler Europe was the Chrysler 180 which was the result of combining two similar projects that Rootes and Simca had separately at the same time. The sales result was not very good except in Spain. It was sold from 1970 to 1982.  • The first single car developed only by Chrysler was the Chrysler 150 which their sales were really high and was awarded the European Car of the Year in 1976. It was sold from 1975 to 1985.  Pablo MARTINEZ – Emilie GLERANT – Christophe BURGUN – Benoît ROJARE – Charles FREMONT – Philippe MERVEILLE – Wyclief LASSEY – Flore LAFARGUE 12 / 01 / 2010

17. The Chrysler Horizon, was another success receiving the award for the Car of the Year in Europe in 1978. It was sold from 1977 to 1986.  • The Chrysler Sunbeam was a development entirely from the British side of Chrysler Europe to maintain production plant Linwood, Scotland, which was threatened with closure. It was sold from 1977 to 1981. • At the time of the acquisition of Chrysler Europe by the PSA Group, was in development a vehicle, which eventually took the name of Talbot Tagora.  Apart from these models, Chrysler Europe continued producing and marketing the Rootes and Simca vehicles already produced before the acquisition by Chrysler. 12 / 01 / 2010 Pablo MARTINEZ – Emilie GLERANT – Christophe BURGUN – Benoît ROJARE – Charles FREMONT – Philippe MERVEILLE – Wyclief LASSEY – Flore LAFARGUE

18. Merging of Chrysler with Peugeot explained by M. Happe M. Happe has started to deal with marketing for Peugeot in 1981 M. Happe worked before 10 years in marketing for Chrysler. 12 / 01 / 2010 Pablo MARTINEZ – Emilie GLERANT – Christophe BURGUN – Benoît ROJARE – Charles FREMONT – Philippe MERVEILLE – Wyclief LASSEY – Flore LAFARGUE

19. Motivations for this merge on Peugeot side: • Peugeot only in France (and a little in Africa) and need to extend to Europe : • “vieille dame de Sochaux”. • Chrysler Europe meanwhile factories in UK and in Spain. • Critical scale need by Peugeot Company to be competitive. • Peugeot need know-how of marketing that Chrysler could bring. Chrysler experience of the European countries. • At this time there were a discussion about possible merging between Chrysler and Volkswagen: Need to be quick to get Chrysler 12 / 01 / 2010 Pablo MARTINEZ – Emilie GLERANT – Christophe BURGUN – Benoît ROJARE – Charles FREMONT – Philippe MERVEILLE – Wyclief LASSEY – Flore LAFARGUE

20. Causes of the low success of this merging: • Activity networks difficult to merge. • Car dealers of Peugeot and former Chrysler competing each other because in same area. The networks were not complementary. • Chrysler hadn’t a good public image: Peugeot gave up the Chrysler name. • The price set by Chrysler was actually too high compared to the assets, useful for Peugeot. • → Talbot bankrupted in 1982. As Peugeot lost a lot of money they cut cost on their cars and they developed marketing by themselves. 12 / 01 / 2010 Pablo MARTINEZ – Emilie GLERANT – Christophe BURGUN – Benoît ROJARE – Charles FREMONT – Philippe MERVEILLE – Wyclief LASSEY – Flore LAFARGUE

21. PSA / Mitsubishi cooperation 4007 C- Crosser 12 / 01 / 2010 Pablo MARTINEZ – Emilie GLERANT – Christophe BURGUN – Benoît ROJARE – Charles FREMONT – Philippe MERVEILLE – Wyclief LASSEY – Flore LAFARGUE

22. History of the PSA / Mistubishicooperation : • 2005 : first agreement concerning the 4x4 vehicle • 30000 vehicle per year • 2008 : first common plant, based in Russia • 70 % PSA / 30 % Mistubishi Motors • 2008 : Worktogether to developpelectrical pull 12 / 01 / 2010 Pablo MARTINEZ – Emilie GLERANT – Christophe BURGUN – Benoît ROJARE – Charles FREMONT – Philippe MERVEILLE – Wyclief LASSEY – Flore LAFARGUE

23. The PSA / Mitsubishi cooperationcouldturninto an alliance • Since PSA isstilllooking for a concrete alliance, there are chances for them to developp a real partnership to be more competitivearound the world • PSA could enter around 30% to 50% into the Mistubishi capital • How ? Mitsubishi : issue of stock • When ? The two parts are discussingsince a few months about this alliance. • It couldhappenearly. 12 / 01 / 2010 Pablo MARTINEZ – Emilie GLERANT – Christophe BURGUN – Benoît ROJARE – Charles FREMONT – Philippe MERVEILLE – Wyclief LASSEY – Flore LAFARGUE

24. Consequences of a PSA / Mitsubishi alliance ? • The group wouldbecome the 6th car manufacturer of the world • It wouldbepresent in all marketsaround the world • Probalities of this alliance : • Sincethey are looking for producingtogether an electric car around 2011, the chances of this alliance are high 12 / 01 / 2010 Pablo MARTINEZ – Emilie GLERANT – Christophe BURGUN – Benoît ROJARE – Charles FREMONT – Philippe MERVEILLE – Wyclief LASSEY – Flore LAFARGUE

25. QUESTIONS ? 12 / 01 / 2010 Pablo MARTINEZ – Emilie GLERANT – Christophe BURGUN – Benoît ROJARE – Charles FREMONT – Philippe MERVEILLE – Wyclief LASSEY – Flore LAFARGUE