A huge change awaits the global automotive industry as Fiat Chrysler Automobiles (FCA) and France’s PSA Group receive the final OK to close their merger to form Stellantis, the world’s fourth-largest automaker.
Discussions for the merger began in 2019 with plans to close the deal in early 2021 as soon as the regulatory bodies and shareholders give their approvals. The initial date for completing the merger was January 16, after which Stellantis would be listed on European stock exchanges and the New York Stock Exchange. According to FCA and PSA, Stellantis will trade both in Europe and in the US beginning January 18 and 19, respectively.
While earlier reports claim that the merger will be 50/50 for the two companies, recent updates reveal that PSA will be taking over FCA in the final deal. Carlos Tavares, current CEO of the PSA Group, will assume the CEO position for Stellantis. Meanwhile, FCA’s CEO Mike Manley will head operations in North America.
Manley will play a significant role in PSA’s efforts to introduce the Peugeot brand back to the US. Prior to the merger, PSA has expressed its intent to return to the American market sometime between 2022 and 2023.
Stellantis, according to FCA and PSA, is expected to introduce cost savings and synergies for both companies as they begin to consolidate vehicle platforms, share powertrains, and invest in the same technologies.
With their operations streamlined, the two companies are looking to save $6 billion. It remains to be seen, though, which of the 14 brands between FCA and PSA will be part of the Stellantis portfolio. The list includes Dodge, Chrysler, Alfa Romeo, Fiat, Peugeot, and Citroen, among others.
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