Fiat Chrysler and PSA to seal merger to become Stellantis

  • Stellantis needs to invest billions in the years ahead to transform its vehicle range for the electric era.
The logo of Stellantis is seen in this image provided on November 9, 2020. Communication FCA /Handout via REUTERS (via REUTERS)
The logo of Stellantis is seen in this image provided on November 9, 2020. Communication FCA /Handout via REUTERS

Fiat Chrysler and PSA will seal their long-awaited merger on Saturday to create Stellantis, the world's fourth-largest auto group with deep enough pockets to fund the shift to electric driving and take on bigger rivals Toyota and Volkswagen.

It took over a year for the Italian-American and French automakers to finalise the $52 billion deal, during which the global economy was upended by the Covid-19 pandemic. They first announced plans to merge in October 2019, to create a group with annual sales of around 8.1 million vehicles.

Also check these Vehicles

Find more Cars
Byd Seal (HT Auto photo)
UPCOMING
BatteryCapacity Icon82.5 kWh Range Icon700 km
₹ 55 - 60 Lakhs
View Details
Toyota Camry (HT Auto photo)
Engine Icon2487.0 cc FuelType IconMultiple
₹ 46.17 Lakhs
Compare
Lexus Es (HT Auto photo)
Engine Icon2487.0 cc FuelType IconMultiple
₹ 56.55 - 62.19 Lakhs
Compare
View Offers
Hyundai Ioniq 6 (HT Auto photo)
UPCOMING
BatteryCapacity Icon77.4 kWh Range Icon631 Km
₹ 65 Lakhs
View Details
Hyundai Creta (HT Auto photo)
Engine Icon1497 cc FuelType IconMultiple
₹ 11 - 20.15 Lakhs
Compare
View Offers
Mahindra Thar (HT Auto photo)
Engine Icon2184 cc FuelType IconMultiple
₹ 11.25 - 17.20 Lakhs
Compare
View Offers

Shares in Stellantis, which will be headed by current PSA Chief Executive Carlos Tavares, will start trading in Milan and Paris on Monday, and in New York on Tuesday.

Now analysts and investors are turning their focus to how Tavares plans to address the huge challenges facing the group – from excess production capacity to a woeful performance in China.

Tavares will hold his first press conference as Stellantis CEO on Tuesday, after ringing NYSE's bell with Chairman John Elkann.

FCA and PSA have said Stellantis can cut annual costs by over 5 billion euros ($6.1 billion) without plant closures, and investors will be keen for more details on how it will do this.

Marco Santino, a partner at consultants Oliver Wyman, said he expected Tavares to disclose the outlines of his action plan soon, but without divulging too many details at first. "He has proven to be the kind of person who prefers action to words, so I don't think he will make loud statements or try to over-sell targets," he said.

Like all global automakers, Stellantis needs to invest billions in the years ahead to transform its vehicle range for the electric era.

But other pressing tasks loom, including reviving the group's lagging fortunes in China, rationalising its huge global empire and addressing massive overcapacity.

"It will be a step by step process, also to allow the market better appreciate every single move. I don't think we will have all the details before one year," Santino said. FCA CEO Mike Manley - who will head Stellantis' key North American operations - has said 40% of the carmaker's expected synergies would come from convergence of platforms and powertrains and from optimising R&D investments, 35% from savings on purchases, and another 7% from savings on sales operations and general expenses.

First Published Date: 16 Jan 2021, 08:29 AM IST
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.