The merger between Groupe PSA and FCA Automobiles has been completed. The two groups merge to form Stellantis, a new huge player in the car world that has become the fourth largest car manufacturer in the world with fourteen brands.
Stellantis is now the merger between Groupe PSA and FCA Automobiles has officially been completed after the Volkswagen Group, the Renault-Nissan-Mitsubishi Alliance and Toyota Motor Group are the largest automaker in the world. The group’s fourteen brands account for around 9 percent of global car sales.
The merger of the two groups, which each make up 50 percent of the company, was a lengthy process that was further delayed by the corona crisis, among other things. After approval from regulators and their own shareholders, the two automakers officially merged into Stellantis that is worth $ 52 billion on Saturday. Today, that company makes its debut on the stock exchanges in Paris (PSA) and Milan (Fiat Chrysler). On Tuesday, Stellantis also takes over the US listing of Fiat Chrysler, when the stock exchanges there start the stock exchange week a day later after a long weekend due to Martin Luther King day.
PSA, which includes DS and Vauxhall in addition to Peugeot, Citroen and Opel, and FCA Automobiles, which carries brands such as Fiat, Chrysler, Jeep, Ram, Dodge, Maserati, Abarth, Alfa Romeo and Lancia, have felt the backlog in recent years. other brands of electric cars. New entrants such as Tesla, among other things, ensured that traditional automakers saw the need for more and accelerated investments in electric driving.
The combination was therefore considered necessary in the automotive sector to enable the high investment and research costs associated with the switch to electric driving. Both companies expect to save up to 5 billion euros on those development costs, but also on production.
It was already clear that FCA Automobiles in particular recognized the need for upscaling. That company previously flirted with PSA and then reached a merger agreement with Renault, which met resistance from the French government. After that, the way was open again for a new romance with PSA and this time it came to an agreement.
Electric driving is not the only problem that Stellantis faces. PSA is especially large in Europe and also doing well in the Middle East, Africa and Latin America. Fiat Chrysler is a major player in Europe and the United States. Neither company is doing great in China, the world’s largest car market. Furthermore, the corona crisis has caused enormous overcapacity in the car industry.
Stellantis will be headquartered in Amsterdam and managed by PSA CEO Carlos Tavares. John Elkann, currently still president of Fiat Chrysler and a scion of the Agnelli family that owns the Italian automaker, will become chairman of the new combination.