FCA and PSA merger receives the OK to create fourth largest automaker
FCA and PSA will combine forces to create Stellantis, and it's all set to close later this month.
Monday brought about big news for the automotive landscape as Italian-American automaker Fiat Chrysler Automobiles and France's PSA Group received the green light from shareholders to create Stellantis, a merged automaker that will soon become the fourth largest automaker in the world.
The two automakers first came to the table to announce their intention to merge operations back in 2019 and agreed the deal, if regulatory bodies and shareholders approved it, would close in the early part of 2021. That date is set for Jan. 16 for a final merger completion, and days later, common shares of Stellantis will list on European stock exchanges and the New York Stock Exchange. Both automakers said in a joint statement stock will trade in Europe on Jan. 18 and Jan. 19 in the US.
From left to right: Soon-to-be Stellantis CEO Carlos Tavares and Stellantis North American operations chief, Mike Manley.
Although both automakers billed this as a 50/50 merger, PSA is technically taking over FCA in the final deal. PSA's current CEO Carlos Tavares will become CEO of the combined Stellantis, while FCA CEO Mike Manley will head up the automaker's North American operations. Manley will likely play a key role as PSA works to introduce the Peugeot brand back to North America, specifically, the US. Long before FCA and PSA declared their intent to merge, the French automaker was hard at work on creating a footprint to sell the French vehicles in the US once again. The timetable for Peugeot's return is somewhere between 2022 and 2023, though that could certainly change with the merger closing.
Both automakers said the merged automaker will provide a massive bundle of cost savings and synergies as the two work to consolidate vehicle platforms, share powertrains and pour resources into future mobility and electric vehicle technologies. The two companies said they expect to save over $6 billion once FCA and PSA's operations completely streamline under one roof. PSA and FCA both promised to not close any auto plants as part of the merger, but what becomes of the 14 brands that will soon sit under Stellantis is less clear. This automaker will now include everything from Dodge , Chrysler, Alfa Romeo , Fiat, Peugeot, Citroen and more.
