Say goodbye to FCA and PSA. Hello to Stellantis.
It's finally a done deal more than a year after Fiat Chrysler and PSA Groupe announced plans for a 50-50 merger. The automakers have released a press release announcing the creation of Stellantis over the weekend, and it is now the world's fourth-largest automaker. "The merger between Peugeot S.A. and Fiat Chrysler Automobiles N.V. that will lead the path to the creation of Stellantis N.V. became effective today," the two automakers said in a statement.
FCA brands including Jeep, Ram, Dodge, Fiat, and Chrysler all now fall under the same umbrella as Peugeot, Citroen, and Opel. All told, Stellantis consists of 14 brands, though Chrysler's future already remains uncertain. Common shares of Stellantis will begin trading on Euronext in Paris and on the Mercato Telematico Azionario in Milan, Italy this Monday, and on the New York Stock Exchange on Tuesday. FCA is officially no more.
Does this mean a rebadged Jeep Wrangler will suddenly be found in France wearing a Peugeot emblem? No, but we're going to be seeing significant areas of technology cooperation with future electric vehicles and autonomy. FCA will now have access to PSA's small and electric vehicle platforms and battery technologies. PSA now has access to the highly profitable North American market with its trucks and SUVs. Annual sales are expected to around 8.1 million vehicles.
Stellantis also aims to save $5.9 billion annually due to consolidating platforms and powertrains, along with greater purchasing power and redundancies in sales and marketing. A more efficient supply chain is another significant benefit. PSA Groupe chief Carlos Tavares serves as Stellantis CEO while now-former FCA CEO Mike Manley is now in charge of all operations in North and South America.
A news conference has been scheduled for this Tuesday where more details regarding the new automaker's immediate and long-term plans are expected to be announced in greater detail. Both FCA and PSA had been anxious to finalize the deal over the past several months but ran into some regulatory hurdles, specifically with the EU antitrust authority. The now-resolved problem involved Stellantis' future commercial truck business potentially becoming a monopoly in the continent.
One of Stellantis' biggest challenges is China where neither FCA nor PSA had a significant presence. It must now set up a network in the world's largest automotive market in order to effectively compete against rival automakers. That's far easier said than done.