The deliberate merger between Fiat Chrysler Cars (FCA) and the PSA Group has been formally accomplished, creating a brand new business large referred to as Stellantis.
The brand new firm takes its identify from the Latin ‘Stello’, which means ‘to brighten with stars’. Set to supply about eight million automobiles a 12 months, with promised revenues of over £150 billion, Stellantis will develop into the fourth largest automobile agency on the earth.
Stellantis will mix a complete of 14 manufacturers, containing a mixture of quantity sellers, principally offered by PSA, and extra premium ranges, resembling FCA’s Alfa Romeo and Maserati. A few of these manufacturers are extra Europe-centric and a few are extra centered on the US.
The complete listing of manufacturers housed below Stellantis is: Peugeot, Citroen, DS, Vauxhall/Opel, Alfa Romeo, Fiat, Lancia, Maserati, Dodge, Jeep, Chrysler, Ram and Abarth.
In line with spokespeople from PSA and FCA, the merger will finally save the businesses £3.2 billion via a combination of synergies and economies of scale.
The brand new umbrella firm is owned 50/50 between FCA and PSA, however since PSA’s CEO Carlos Tavares is the chief of Stellantis and the board includes a majority of PSA members, the French agency is successfully in management.
The deal was provisionally struck in October 2019 and formally agreed by shareholders from PSA and FCA two weeks in the past – it was voted via virtually unanimously, with an approval ranking of round 99% by the boards of administrators of each corporations. The European Fee gave regulatory approval to the merger earlier this month.
Whereas Stellantis is now an official firm, shares within the agency is not going to be tradable till January 18, when Stellantis releases widespread shares to be exchanged in Paris and Milan and floats on the New York Inventory Alternate the day after.
Along with the world’s fourth largest automobile agency, Stellantis is a big van maker. Historically a energy of each PSA and FCA, gross sales of vans together with the Renault Kangoo and Ram Promaster, have been anticipated to be over 500,000 within the first half of 2020 earlier than the coronavirus pandemic.
On the finish of final 12 months, PSA introduced the launch of electrical variations of its Citroen Berlingo, Peugeot Associate and Vauxhall Combo vans for 2021.
The opposite key energy for the brand new firm will probably be SUVs. Final 12 months PSA revealed plans for a brand new electrified eVMP platform to underpin its bigger automobiles. Whereas PSA has not commented whether or not the brand new platform will probably be utilized by FCA manufacturers below Stellantis, it’s possible that some platform sharing will happen to drive down prices.
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