- FCA and PSA Group have completed the merger announced in 2020, creating Stellantis, now the fourth-biggest automaker in the world by volume.
- Stellantis becomes the operator of 14 different brands, including Chrysler, Fiat, Jeep, Ram, Peugeot, and Citroën.
- The merger will allow the two companies to reduce research and development costs, particularly as the companies move toward electrification.
PSA Group and Fiat Chrysler Automobiles (FCA) have officially merged to create Stellantis, bringing together 14 vehicle brands across the globe. With the completion of a merger that has been in the works for more than a year, Stellantis becomes the fourth-biggest automaker in the world by volume and third-biggest by revenue. Now under the Stellantis umbrella are Chrysler, Dodge, Jeep, Ram, Fiat, Alfa Romeo, Abarth, Lancia, and Maserati—thanks to FCA—as well as Citroën, DS, Opel, Peugeot, and Vauxhall, thanks to PSA.
Stellantis will be headquartered in Amsterdam and will have operation centers in France, Italy, and the United States. Stellantis CEO Carlos Tavares—the former CEO of PSA—said in a press conference today that this merger will allow the two companies to combine forces to create “highly effective” sibling cars as well as give the various brands the opportunity to rebound and grow.
Currently, it’s unclear whether or not some of the 14 brands will be cut from the Stellantis portfolio; Tavares wouldn’t specify today. Nonetheless, questions have been raised on whether both Fiat and Chrysler will survive the merger, as both have struggled in recent years. And in the case of Peugeot, its return to the U.S. is now uncertain; in early 2019, it had been reported that Peugeot would return to American roads by 2026.
A focal point for the new company is electrification and the number of electrified vehicles in its lineup. Currently, Stellantis has 29 electrified vehicles on the market—including both fully electric and hybrid vehicles—and will offer 39 by the end of 2021. Then, by 2025, Stellantis companies will produce “one electrified model for every newly launched global model,” the company said at a press conference today.
Plans for the merger were first announced in October 2019 but were delayed by the coronavirus pandemic. Now that it has gone through, former FCA CEO Mike Manley will head operations in North America for Stellantis. The merger, according to Tavares, will save the two companies $6.1 billion in the coming years; 80 percent of those savings will be realized before 2025, Tavares said.
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