Fiat, PSA pick 'Stellantis' as name for merged company

Fiat Chrysler (FCA) and Peugeot Citroen (PSA) announced Wednesday that they have agreed to call the group formed by their mega-merger "Stellantis".

The tie-up, which was announced at the end of October and is to be finalised early next year, will create the world's fourth-largest automaker in terms of volume, and number three in terms of sales.

In a joint statement, the two automakers said that naming the future company was "a major step as they move towards the completion of their 50:50 merger".

The name is rooted "in the Latin verb 'stello' meaning 'to brighten with stars'", the statement said.

"It draws inspiration from this new and ambitious alignment of storied automotive brands," it added.

The next step would be the unveiling of a logo for Stellantis.

"The name's Latin origins pay tribute to the rich history of its founding companies while the evocation of astronomy captures the true spirit of optimism, energy and renewal driving this industry-changing merger," the statement read.

The combined company unites brands such as Peugeot, Citroen, Fiat, Chrysler, Jeep, Alfa Romeo and Maserati into a global giant.

While the parent group will be known as Stellantis, each brand is to continue under its own marque.

European Union authorities said last month that the plan would undergo an exhaustive probe over concerns it might stifle competition.

The EU worries about the merger's effect on Europe's highly-profitable market for vans, which are technically easy to manufacture but sold at good prices.

Apart from satisfying regulatory requirements, the companies said they also still need to secure approval from their respective shareholders.

Subject to all customary conditions, the merger is on track to close by the end of the first quarter of 2021, they said.

Based on 2019 figures, the combined group would have posted 167 billion euros ($190 billion) in sales, behind Toyota and Volkswagen.