- Fiat Chrysler Automobiles (FCA) and Citroen-Peugeot owner Groupe PSA completed the $52billion merger today
- Combined annual vehicle output will be 8million, making Stellantis the fourth largest car maker
- Only Toyota, Volkswagen Group and Renault-Nissan produce more units
A new mega deal to merge FCA and Groupe PSA has been completed today, finalising a deal that creates the world’s fourth largest manufacturer by production volume.
Carlos Tavares, former PSA boss, will take the reigns of the newly formed company as CEO, while other managerial positions will be confirmed in the next weeks.
With annual production of around 8 million vehicles worldwide and revenues of more than €165 billion ($203 billion), Stellantis is expected to play a key role in the auto industry’s jump into the new era of electrification.
Stellantis will have 14 brands, from FCA’s Fiat, Alfa Romeo, Maserati and US-focused Jeep, Dodge and Ram to PSA’s traditionally Europe-focused Peugeot, Citroen, Opel-Vauxhall and DS.
In a statement released on Saturday morning, the newly-formed car maker, said: ‘The merger between Peugeot S.A. (“Groupe PSA”) and Fiat Chrysler Automobiles N.V. (“FCA”) (NYSE: FCAU / MTA: FCA) that will lead the path to the creation of Stellantis N.V. (“Stellantis”), became effective today.
‘As previously announced, Stellantis’s common shares will begin trading on Euronext in Paris and the Mercato Telematico Azionario in Milan on Monday 18th January 2021, and on the New York Stock Exchange on Tuesday 19th January 2021, in each case under the ticker symbol “STLA”.’
It means the group will be the fourth largest car manufacturer behind Toyota, Volkswagen and Renault-Nissan.
The merger will see PSA gain increased access to American markets while FCA will be able to utilise PSA’s latest vehicle platforms, including those specifically designed for electric vehicles that will help it achieve stringent CO2 targets.
It also means the brands can share costs on the development of electric powertrains, autonomous and connected vehicle technology.
Carlos Tavares’ first priorities will be to spearhead the carmaker’s fortunes in China, rationalise a sprawling global empire and address massive overcapacity, as well as focus on creating cleaner cars.
FCA Chairman John Elkann, the future chairman of Stellantis, said the new automaker would ‘play a leading role as the next decade redefines mobility’.
And FCA CEO Mike Manley – who will head Stellantis’ key north American operations – said 40 per cent of the expected synergies form the merger – projected at more than €5 billion, will come from convergence of platforms and powertrains and from optimising R&D investments.
Manley said 35 per cent of synergies would be driven by savings on purchases, while another 7 per cent would come from savings on sales operations and general expenses.
The remainder of the synergies are expected from the optimization of other functions including logistics, supply chain, quality and after-market operations, he added.
FCA and PSA pledged not to close any plants after the merger, which includes the Vauxhall Astra factory in Ellesmere Port.