PSA Group and Fiat Chrysler Automobiles NV will combine to create the world’s fourth-biggest carmaker, as the manufacturers prepare to shoulder the costly investments in new technologies transforming the industry such as automation and electrification.
In the biggest auto tie-up since Daimler’s ill-fated purchase of Chrysler in 1998, the French and Italo-American carmakers will each own half of the enlarged business with combined annual sales of 8.7 million vehicles.
The all-stock transaction brings together two carmaking dynasties — the billionaire Agnelli clan of Italy and the Peugeots of France — and will forge a regional powerhouse to rival Germany’s Volkswagen AG with a market value of about US$47 billion, surpassing Ford Motor Co.
Executives promised not to close any plants in the merger even though the new company aims to extract 3.7 billion euros in annual synergies related to platform and purchasing efficiencies. FCA currently operates two assembly plants in Ontario where it manufactures nearly one quarter of all vehicles made in Canada.
“In the merger there will be no affect on production in Ontario,” FCA chief executive Mike Manley said on a call with reporters Wednesday.
Earlier this year, FCA announced plans to eliminate a third shift and 1,500 jobs at its Windsor, Ont., plant where 6,000 employees build the Chrysler Pacifica, Chrysler Pacifica Hybrid, Chrysler Voyager and Dodge Grand Caravan.
It has since extended the shift until the end of the first quarter in 2020, and will continue to review the feasibility of maintaining the shift, a spokesperson said in an email. It’s too early to comment on whether that extra capacity — if it opens up — could be used to build PSA vehicles in North America, the spokesperson said.
No cuts have been proposed at FCA’s Brampton, Ont., plant where 3,400 workers build the Chrysler 300, Dodge Charger and Dodge Challenger.
While the combined company said its manufacturing footprint will remain stable for now, the executives touted the synergies from sharing technologies and platforms across brands.
The new company will be run by PSA Chief Executive Officer Carlos Tavares, with Fiat Chairman John Elkann holding the same role.
The transaction will take as long as 15 months to complete, pending approvals by shareholders of both companies and by regulators, the carmakers estimated.
Like executives across the industry, Tavares and Elkann are responding to growing pressure to pool resources for product development, manufacturing and purchasing in the face of trade wars and an expensive shift toward electric and self-driving technology.
“The challenges of our industry are really, really significant,” Tavares, 61, said on the call with reporters. “The green deal, autonomous vehicles, connectivity and all those topics need significant resources, strengths, skills and expertise.”
“The technological revolution we are embracing requires a more innovative response than anything we have done before,” Elkann, 43, said in a letter to staff.
In an era when size is becoming ever more important, the deal will turn the two mid-sized carmakers into a global heavyweight, with a stable of popular brands and annual vehicle sales surpassing General Motors Co. The combination will give Peugeot-maker PSA a long-sought presence in North America and should help Fiat gain ground in developing low-emission technology, where it’s lagged rivals.
Mark Nantais, president of the Canadian Vehicle Manufacturers’ Association, said the deal reflects where the auto industry is going and where it needs to go given how expensive it is to develop new technologies.
“That is so capital intensive and there’s only so much money to go around,” Nantais said. “They have to look for partners, they have to look for synergies in order to basically be prepared for the future.”
As for future manufacturing decisions, Nantais expects the companies to choose markets where it can produce more profitably. While Canada has a skilled labour force, infrastructure and the benefit of the new Nafta deal, it also has higher costs for inputs such as electricity, Nantais said.
“We’re still one of the highest cost jurisdictions to produce,” he said.
When it comes to where to locate production and management, Tavares indicted the company will stick to where the brands have roots and manage through regional headquarters.
“The brands carry the passion, the brands carry the history, the brands carry the emotions. This is why we considered that the brands will stay in their countries of origin,” he said. “Italian brands will stay in Italy, French brands will stay in France, American brands will stay in the U.S., and German brands will stay in Germany.”
Yet the new company will face many challenges. It will still be heavily reliant on Europe’s sluggish and saturated auto market, and poorly positioned in China, the world’s largest country for car sales.
The challenges will be manifold, from improving Fiat’s struggling European operations to meeting tough rules on emissions that kick in next year in the region as well as an unprecedented policy known as the green deal demanding an even tougher clampdown on carbon. Tavares, known as a hard-nosed cost-cutter, will also have to navigate the political crosscurrents in France, Italy and the U.S., where the automakers have deep national roots.
He has tackled tough jobs before, leading the French carmaker back from the brink after taking over in 2014, and reviving the loss-making Opel brand after acquiring it from GM two years ago.
“We believe further synergies above the modest 3.7 billion euros announced will be required to justify the combination going forward, which Tavares’ track record makes likely,” Bloomberg Intelligence analyst Michael Dean said in a note.
The deal with Fiat Chrysler marks a reversal of fortune for the 61-year-old executive, who was forced into a bystander role earlier this year when Elkann approached Renault SA, PSA’s French rival. That merger fell apart in early June after Renault’s Japanese partner, Nissan Motor Co., declined to back it.
China’s Dongfeng Motor Corp., which owns 12 per cent of PSA, will see its stake in the combined company decline to 4.5 per cent as a result of the deal and the sale of a portion of its holding to the French carmaker.
Dongfeng’s stake in PSA has attracted attention because of the possibility it could interfere with U.S. regulatory approval. U.S. economic adviser Larry Kudlow said last month the Trump administration would review the proposed merger because the deal would give the Chinese carmaker a stake in the combined company.
Tavares, on the call, said the companies don’t expect any significant issues from the antitrust regulators.
Fiat CEO Manley dismissed concerns over legal and tax issues that arose in recent weeks. GM in November accused Fiat Chrysler of bribing a union in the U.S. for more favourable terms. Manley, speaking with reporters, called the allegation meritless.
Separately, Italian tax authorities have claimed that Fiat owes the government a hefty sum after underestimating Chrysler’s value following its purchase several years ago. Manley reiterated that the case would have no material impact, and said both issues were reviewed during due diligence with PSA.
Manley, 55, who took over at Fiat last year after the sudden death of industry legend Sergio Marchionne, “will be there alongside” Tavares at the combined group, Elkann said in a letter to employees. He didn’t specify what Manley’s role would be.
Before the closing, Fiat will distribute to its shareholders a special dividend of 5.5 billion euros while PSA will distribute its 46 per cent stake in car-parts maker Faurecia SE to its own investors.
The spinoff or sale of Fiat’s robotics arm Comau slated for the benefit of the Italian company’s shareholders has been modified since October. Now, the planned separation will occur after the closing, and shareholders of the combined company will benefit.
Kitchener drive-thru COVID-19 testing site to reopen by appointment only on Thursday – CTV Toronto
Kitchener’s drive-thru COVID-19 testing site will reopen on Thursday, but people will need to book an appointment to get a test.
Anyone who needs a test should go online, pick a time slot and register with their name and health card.
The site was closed down early on Wednesday morning after staff reportedly faced verbal abuse and threats of violence.
A spokesperson for Grand River Hospital, which runs the site, said that the issue was compounded by traffic issues along the streets around the testing site.
Long wait times and lineups have created tension around COVID-19 testing as more people look to get tested amid fears of a second wave.
Some people arrived at the drive-thru site as early as 2 a.m. in order to secure a place there. Dozens of cars lined up Wednesday morning, and the line’s capacity was full by 7 a.m. Staff don’t start testing until 15 minutes after then.
By around 8:30 a.m., the site had closed for the day. Waterloo regional police posted about the closure on Twitter, asking for people to be patient and avoid the area.
Police said there were no arrests, but they did assist with setting up barricades.
Thirty minutes later, the hospital tweeted about the closure as well, citing “safety concerns.”
Everyone signing up for a COVID-19 test starting Thursday will need to fill out a separate pre-registration form, the Grand River Hospital said in a tweet. Only people who have pre-registered will be able to get a test.
Those who were still in line would still be tested, Grand River Hospital said. By 11 a.m., the site, normally backed up for hours at a time, was completely empty.
The difficulties of getting tested are not unique to Waterloo Region, as thousands of people face the same hurdles daily around Ontario. The calls for more accessible testing has led Premier Doug Ford to partner with pharmacies in order to allow more people to get tested.
On Wednesday, Ford announced that 60 pharmacies would be offering testing soon. None of them are in Waterloo Region.
The tests will be by appointment only for people without symptoms.
St. Mary’s General Hospital said Wednesday that people should only self-refer to the assessment centre if they have COVID-19 symptoms or if they’ve been directed to get a test because they’re a high-risk contact of someone else with the disease.
They said people can also come if they’ve been referred by a medical health professional to meet a ministry guideline, like visiting a long-term care home or having a medical procedure done.
Lee Fairclough, head of the region’s COVID-19 assessment centres and president of St. Mary’s General Hospital, said she’d like to see pharmacies doing tests at local pharmacies.
“We will certainly be open to how we do that within our region,” she said.
Fairclough said the region is also seeking out new locations for additional testing sites, but the main priority is to beef up the existing sites.
“The decision we are making right now is to move nurses, move physicians from other clinical services and practices, to do this testing,” she said. “That’s probably the biggest thing we are sorting through.”
The walk-in centres are busy, but sites offering appointments are also swamped.
“The numbers have gone through the roof,” said Dr. Joseph Lee from KW4 COVID Assessment Centre.
The clinic’s next available appointment isn’t until early October. Lee said he’s proposing turning his other two walk-in clinics into COVID-19 assessment centres as well.
Cambridge Memorial Hospital’s COVID-19 assessment launched a new phone number on Wednesday to help manage calls for appointments. The new number is 519.740.4975, but the centre said it’s best to reach through email at firstname.lastname@example.org.
Anyone calling can register for a booked appointment when arriving at the centre, schedule an appointment and cancel an appointment.
The centre said it’s prioritizing people with symptoms and anyone who’s been instructed to get a test by a public health official.
Shopify says it notified privacy commissioner of breach involving 'rogue' staff – CTV News
Shopify Inc. says it has notified Canada’s privacy commissioner about a recent data breach it says was carried out by two “rogue” employees.
“In accordance with Canadian law, we promptly notified all affected merchants,” a spokeswoman for the company wrote in an email.
“We have subsequently provided information regarding the incident to the Office of the Privacy Commissioner.”
Earlier Wednesday, the commissioner’s office said it hadn’t yet received a report about the breach.
“Our office is reaching out to Shopify, given the potential seriousness of the breach, to request more information about the matter,” Vito Pilieci, a senior communications adviser wrote in an email.
Under the Personal Information Protection and Electronic Documents Act, it is mandatory for companies to report breaches to the privacy commissioner’s office, “where it is reasonable to believe that the breach creates a real risk of significant harm to an individual,” Pilieci said.
Shopify spokeswoman Rebecca Feigelsohn said the two employees involved in the breach were fired.
On Tuesday, the Ottawa-based company first revealed on an online discussion board that it had identified two workers involved in illegitimately obtaining records connected to some of its merchants.
“We immediately terminated these individuals’ access to our Shopify network and referred the incident to law enforcement. We are currently working with the FBI and other international agencies in their investigation of these criminal acts,” the company said.
“While we do not have evidence of the data being utilized, we are in the early stages of the investigation and will be updating affected merchants as relevant.”
The customer data the employees were accessing was linked to fewer than 200 merchants, who Shopify has declined to identify but says have been notified.
The improperly accessed data includes basic contact information such as emails, names and addresses, as well as order details, such as what products and services were purchased.
Shopify said complete payment card numbers and other sensitive personal or financial information were not part of the breach and it has yet to find evidence that any of the data was used.
This report by The Canadian Press was first published September 23, 2020.
The latest on the coronavirus outbreak for Sept. 23 – CBC.ca
We looked at 120,000 confirmed COVID-19 cases in Canada. Here’s what we found
The coronavirus has been confirmed in more than 146,600 people across the country since the first case was detected. CBC News has dug deep into the data collected by the Public Health Agency of Canada (PHAC) to examine how COVID-19, the illness caused by the virus, affects the young, the elderly, men and women in order to better understand what’s most likely to land you in hospital — or worse. The data contains details on 121,795 cases up to the first week of September.
Some of our findings:
CBC’s analysis reveals that since mid-August, infections among young people (under 30) have surged and now, after a summer of provincial reopenings and expanded testing, cumulatively outnumber the elderly. COVID-19 infections are also on the rise among the very youngest (under 20) as schools, colleges and universities reopen.
The 9,000 cases that list symptom details suggest that people with COVID-19 suffer differently depending on age and symptoms. Chills, sore throat and runny nose were reported more frequently among those under 50. Cough and fever were common among all age groups.
Close to 10 per cent of people who tested positive for coronavirus ended up in hospital, according to the cases tracked by PHAC. Two per cent of cases landed in intensive care units (ICU) across all ages but mostly among people over 50. In people admitted to hospital, shortness of breath and fever were more common symptoms, while headaches, sore throat and runny nose were seen more often in less severe cases.
More than 9,200 people have died in Canada with COVID-19. Of all confirmed infections in Canada, six per cent, or 9,274 cases, have been fatal, with the elderly hit the hardest. Only two people under 20 are known to have died from the disease so far. More women in Canada have died from COVID-19, especially in the 80+ age group, where they outnumber men. Outside that age group, more men are dying from the virus.
Click below to watch more from The National
Trudeau to make rare address to the nation amid COVID-19 fight; throne speech promises more support for affected Canadians
Prime Minister Justin Trudeau will make a rare address to the nation Wednesday evening on the fight against COVID-19 as confirmed cases continue to climb in Canada. Trudeau is also expected to summarize the government’s plans laid out in the throne speech, which included a promise to extend emergency support to people affected by the pandemic.
Two of Trudeau’s rival party leaders, Conservative Leader Erin O’Toole and Bloc Québécois Leader Yves-François Blanchet, have tested positive for the virus and have been forced to delay their responses to the throne speech until their self-isolation periods have ended.
CBC News will carry Trudeau’s address at 6:30 p.m. ET, followed by analysis and reaction. Watch, listen and follow live on cbcnews.ca, the CBC News app, CBC TV, CBC News Network, CBC Gem and CBC Radio, as well as on YouTube, Facebook and Twitter.
Ontario to launch COVID-19 testing in pharmacies Friday
Ontario will begin offering COVID-19 testing in pharmacies Friday, beginning with up to 60 pharmacies around the province, Premier Doug Ford says. The testing will be available by appointment only, for those not experiencing symptoms of the virus, and is expected to roll out to further locations in the coming weeks, the province says.
In addition, three hospitals will be offering saliva testing starting this week. Those hospitals include Women’s College, Mount Sinai and University Health Network―Toronto Western Hospital. The saliva-based tests will at first be conducted alongside the usual nasal-pharyngeal testing to assess their accuracy, Health Minister Christine Elliott said at a news conference Wednesday.
The testing initiative is the second part of the government’s fall pandemic preparedness plan. The first piece involved purchasing millions of seasonal flu shots that the government is encouraging all residents to get.
“We have prepared for the worst,” Elliott said. The province has seen modelling of various scenarios including a slow burn of little peaks and valleys in the daily numbers to more dramatic increases, the minister said. Elliott said further details about those models will be unveiled as the province continues to roll out its fall plan.
120 active COVID-19 cases reported on First Nations reserves across Canada
There are currently 120 active cases of COVID-19 on First Nations reserves across Canada, according to data from Indigenous Services Canada. New cases since last week were primarily reported in Alberta, British Columbia and Manitoba. One death was reported, bringing the total of deaths on-reserve from COVID-19 to 10.
There have been 616 cases of COVID-19 on First Nations reserves as of Sept. 21, as well as 51 hospitalizations. A total of 486 First Nations people have recovered. Cases on First Nations reserves reported per region as of Sept. 21:
- British Columbia: 132
- Alberta: 265
- Saskatchewan: 96
- Manitoba: 8
- Ontario: 68
- Quebec: 47
Stay informed with the latest COVID-19 data from Canada and around the world.
Johnson & Johnson begins final phase of single-shot COVID-19 vaccine study
New Jersey-based drug conglomerate Johnson & Johnson is beginning a huge final study to try to prove if a single-dose COVID-19 vaccine can protect against the coronavirus, The Associated Press reports. The study starting Wednesday will be one of the world’s largest coronavirus vaccine studies so far, testing the shot in 60,000 volunteers in the United States, South Africa, Argentina, Brazil, Chile, Colombia, Mexico and Peru.
In August, Canada signed a deal with a subsidiary of Johnson & Johnson to secure up to 38 million doses of the company’s potential vaccine.
A handful of other vaccines in the U.S. — including shots made by Moderna Inc. and Pfizer Inc. — and some in other countries are already in final-stage testing. Hopes are high that answers about at least one candidate being tested in the U.S. could come by year’s end, maybe sooner.
Many vaccine specialists question whether the Food and Drug Administration (FDA) will move at a safe pace under intense pressure from the current U.S. administration. U.S. President Donald Trump has consistently presented a faster timeline for a new vaccine than experts say is adequate to fully test the candidates. On Wednesday, he tweeted a link to news about the new Johnson & Johnson vaccine study and said the FDA “must move quickly.”
“We feel cautiously optimistic that we will be able to have a safe and effective vaccine, although there is never a guarantee of that,” Dr. Anthony Fauci, infectious disease chief at the National Institutes of Health, told a Senate committee on Wednesday.
Preserving your pandemic harvest? Start slow, say experts
Canadians who grew their own gardens this pandemic summer and are looking to try pickling their bounty for the first time should start small, says an Edmonton woman who has been canning for years.
“You don’t have to take the whole weekend,” said Johwanna Alleyne, who teaches canning courses and runs a pickling business in Edmonton called Mojo Jojo Pickles, which produces everything from ketchup to jelly and relish. “Start with single jars, like make one or two jars of something that you’re really proud of…. You’ll catch on pretty quickly.”
This year saw an explosion of interest in gardening as the pandemic forced people to stay closer to home. Similar to the early rush for toilet paper and flour, people are now facing a shortage of Mason jars used to preserve their homegrown fruits and veggies.
Alleyne said she’s certainly noticed people getting into canning and pickling for the first time this year. “I didn’t know that pickles were an essential service, but it seems like they are,” she told CBC Radio’s The Current. “I think we’ve all appreciated just slowing down a little bit. And fresh, real food and good flavour and the comfort of good flavours become really important.”
With pickling, the amount of acid in the jar and how you fill it is important, as is the processing time, said Alleyne. That’s because canning gone wrong can lead to spoilage or cause botulism. If jars meant to preserve peaches or nectarines aren’t prepared properly, for example, you may notice air bubbles, which will cause the preserved fruit to slowly spoil.
Find out more about COVID-19
Still looking for more information on the pandemic? Read more about COVID-19’s impact on life in Canada, or reach out to us at email@example.com if you have any questions.
If you have symptoms of the illness caused by the coronavirus, here’s what to do in your part of the country.
For full coverage of how your province or territory is responding to COVID-19, visit your local CBC News site.
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