Stellantis becomes the fourth largest automaker in the world after Fiat Chrysler Automobiles and Peugeot-Citroen owner Groupe PSA complete the $ 52 billion transaction
- Fiat Chrysler Automobiles (FCA) and Citroen-Peugeot owner Groupe PSA today completed the $ 52 billion transaction
- The combined annual vehicle output will be 8 million, making Stellantis the fourth largest automaker
- Only Toyota, Volkswagen Group and Renault-Nissan produce more units
A new mega-deal to merge FCA and Groupe PSA was closed today. A deal was thus concluded that will create the fourth largest manufacturer in the world by production volume.
Carlos Tavares, former PSA boss, will take over the running of the newly formed company as CEO, while other leadership positions will be confirmed over the next few weeks.
With annual production of approximately 8 million vehicles worldwide and sales of more than 165 billion euros (203 billion US dollars), Stellantis is expected to play a key role in the auto industry’s entry into the new era of electrification.
Stellantis will have 14 brands, from Fiat, Alfa Romeo, Maserati and Jeep, Dodge and Ram with a focus on the USA to PSA’s Peugeot, Citroen, Opel-Vauxhall and DS, traditionally aimed at Europe.
Mega-merger of the auto industry completed: the merger of FCA and Groupe PSA will produce around 8 million vehicles a year for the new ‘Stellantis’ brand
In a statement released Saturday morning, the newly formed automaker said: ‘The merger between Peugeot SA (“Groupe PSA”) and Fiat Chrysler Automobiles NV (“FCA”) (NYSE: FCAU / MTA: FCA) will pave the way for the formation by Stellantis NV (“Stellantis”) points, became effective today.
‘As previously announced, Stellantis common shares will be available for sale on Monday, January 18, 2021, on Euronext in Paris and Mercato Telematico Azionario in Milan, and on Tuesday, January 19, 2021 on the New York Stock Exchange under the ticker symbol “STLA ”. ‘
This makes the group the fourth largest automobile manufacturer after Toyota, Volkswagen and Renault-Nissan.
The merger will give PSA better access to American markets while allowing FCA to leverage PSA’s latest vehicle platforms, including those specifically designed for electric vehicles to meet stringent CO2 targets.
This also means that the brands can share the cost of developing electric drives, autonomous and connected vehicle technologies.
PSA Managing Director Carlos Tavares (pictured) has been Stellantis CEO since today (Friday, January 16).
Fiat Chrysler and French PSA Group shareholders voted to merge earlier this month to create the fourth largest automaker in the world behind Toyota, VW and Renault-Nissan
Carlos Tavares’ first priorities will be to advance the automaker’s destiny in China, streamline a sprawling global empire, clean up massive overcapacity and focus on creating cleaner cars.
FCA chairman John Elkann, future chairman of Stellantis, said the new automaker will “play a leading role in redefining mobility in the next decade”.
Mike Manley, CEO of FCA, who will lead Stellantis’s key North American operations, said 40 percent of the expected synergies from the merger – which are forecast to exceed $ 5 billion – will be on platform and powertrain convergence and optimization from R&D investments.
The deal will improve PSA’s access to the US market while allowing FCA to leverage the sister brand’s latest platforms, including those for electric vehicles
Manley said 35 percent of the synergies would come from savings on purchases, while another 7 percent would come from savings on sales and general costs.
The rest of the synergies are expected from optimizing other functions such as logistics, supply chain, quality and after-market operations, he added.
FCA and PSA have pledged not to close any plants following the merger, which also includes the Vauxhall Astra plant in the port of Ellesmere.