Stellantis Now Official After FCA, PSA Group Seal Merger

Just weeks after reports that Fiat Chrysler Automobiles and PSA Group are in the final stages of their merger talks, the two companies announced the official creation of Stellantis. Now the fourth-biggest automaker in the world in terms of volume, the newly established company will oversee the operations of 14 vehicle brands including Fiat, Chrysler, Jeep, Ram, Dodge, Peugeot, and Citroen.

Stellantis will be based in Amsterdam and will have operation centers in locations such as France, Italy, and the United States. Carlos Tavares, former CEO of the PSA Group, will sit as its CEO, as confirmed in a recent press conference.

Among the many benefits expected from the merger is the creation of “highly effective” sibling cars, reduction in research and development costs, and growth opportunities for other brands under the umbrella.

At the moment, it’s unclear whether the newly formed company will move to cut some of the brands from the portfolio. However, it begs the question whether Fiat and Chrysler will keep their spots in the lineup, considering the struggles both brands have faced in recent years.

Earlier reports claimed company executives are looking at Peugeot’s possible re-entry in the US in a couple of years. But this has since been pushed back following reports that Peugeot CEO Jean-Philippe Imparato wants to reconsider plans.

Right now, Stellantis is expected to focus on the electrification of its vehicles. The company currently has 29 electrified vehicles (fully electric and hybrid alike) in the market, but it is looking to increase this number to 39 by the end of the year and to produce “one electrified model for every newly launched global model” by 2025.

FCA and PSA Group were first revealed to be in talks for a merger in October 2019. Progress was stalled in the past year due to the pandemic. With Tavares as chief executive, FCA’s CEO Mike Manley is expected to head operations in North America.