The world's fourth-largest automaker began operations as the merger of Fiat Chrysler (FCA), and Peugeot (PSA) became official Saturday. Stellantis, the new company, is the result of a $52 billion deal first announced in 2019 between the Italian-American and French automakers. The combined automaker will oversee numerous passenger car, truck, commercial vehicle brands, and have an annual production volume exceeding 8 million vehicles. Combined yearly revenue is more than $205 billion. Under the STLA ticker symbol, Stellantis will begin trading Monday on Paris and Milan stock exchanges. Trading on the New York Stock Exchange will begin Tuesday. World headquarters will be based in The Netherlands, with offices and factories located across the globe.
"The merger between Peugeot S.A. and Fiat Chrysler Automobiles N.V. that will lead the path to the creation of Stellantis N.V. became effective today," remarks FCA and PSA in a joint statement.
Stellantis Includes Alfa Romeo, Citroën, Dodge, Jeep, Maserati, and Peugeot Brands
While the Detroit News remarks that the Stellantis name is "…not a new medication or the fictional sister city of Atlantis," the automaker reports Stellantis comes from the Latin verb "stello" which means "to brighten with stars." Peugeot executive Carlos Tavares now serves as CEO of Stellantis. FCA brings numerous vehicle brands to the merger, including Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Lancia, Ram, and Maserati. PSA brands include. Peugeot, Citroën, DS, Opel, and Vauxhall.
Former FCA CEO Mike Manley will oversee Stellantis' North American operations. His new role comes when Jeep introduces new models, including the recently announced Grand Cherokee L SUV. He remarks, "I'm delighted by the opportunity to work with Carlos and his team on this potentially industry-changing combination. We have a long history of successful cooperation with Groupe PSA and I am convinced that together with our great people we can create a world class global mobility company."
The Stellantis Merger May Affect U.S. Plans For Chrysler And Peugeot
Stellantis reports that the company will focus on large-scale savings from joint vehicle platform development, powertrain technologies, and combined purchasing efficiencies. Additional cost savings could come at the expense of some brands in the U.S. With only the 300 sedan and Pacifica minivan to sell, Chrysler's days as a standalone brand may be numbered. Also, Peugeot CEO Jean-Philippe Imparato recently told Automotive News that the company is assessing the Peugeot brand's re-introduction to the U.S. The challenges continue for Stellantis as a Reuters story highlights the manufacturer's production overcapacity and slow sales in China.
Source: Stellantis/FCA/PSA