Fiat Chrysler Automobiles (FCA) and Groupe PSA sealed their planned merger as scheduled last weekend, resulting in the creation of Stellantis, the world’s fourth-largest automaker. The US$52 billion (RM208 billion) merger has taken more than a year to accomplish, as both companies first announced plans to combine in October 2019.
The new entity, which will have an annual global production of around eight million vehicles and revenues of more than 165 billion euros (RM810 billion), is set to take the fight to larger rivals Toyota and Volkswagen. News reports indicated that shares in the new company were off to a good start during initial trading in European markets.
Currently, Stellantis has 14 automotive brands under its umbrella, with FCA represented by Fiat, Chrysler, Maserati, Jeep, Dodge, Ram, Alfa Romeo, Abarth and Lancia, and PSA by Peugeot, Citroen, Opel, DS and Vauxhall. However, it remains to be seen if any brands are dropped from the portfolio as the automaker makes the shift towards a new automotive era in which electrification will be the primary focus.
Prior to the merger, there was already talk about consolidating vehicle platforms, a move that will save the new company billions of dollars in engineering and manufacturing costs. Reportedly, this streamlining process could translate to job losses in Italy, Germany and Michigan as PSA technology gets integrated into North American and Italian vehicles. Rumours abounded that Chrysler was a brand that could possibly be axed.
According to FCA CEO Mike Manley, who will head Stellantis’ key north American operations, 40% of the expected synergies from the merger will come from convergence of platforms and powertrains as well as from optimising R&D investments, while more than a third of synergies would be driven by savings on purchases and another 7% would come from savings on sales operations and general expenses.
Both companies have previously pledged to not close any plants, and have said annual costs can be trimmed by over five billion euros (RM24.5 billion) without closures.
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so many company. so many useless company.
Imagine if they rename the brands into products / segments
Stellantis Fiat, Abarth – city car a segment
Stellantis Chrysler – mini van
Stellantis Maserati – gran turismo
Stellantis Jeep – 4×4
Stellantis Dodge – muscle car 2, 4 door
Stellantis Ram – pick up
Stellantis Alfa Romeo – executive car
Stellantis Lancia – Italian sports car
Stellantis Peugeot – D
Stellantis Citroen – B segment
Stellantis Opel/Vauxhall – C segment
Stellantis DS – compact executive
What happened to Ferrari? Too much snob appeal for the Stellantis name?
Stellantis sounds like Atlantis, that fabled ancient civilisation which ancient Greek philosopher Plato claimed to have sunk under the sea thousands of years ago…
I want to make a complaint about Peugeot which I bought in Malaysia. I’m very frustrated been push around by Nasim and Bermaz. I want an email address where I can make a complaint. Hope to get a fast response.
Thanks.