Fiat Chrysler and Peugeot will have 15 brands under their wing
We're barely a week in 2021 and so much has happened in the automotive industry. Just recently, it's full steam ahead for the Fiat Chrysler-Peugeot Société Anonyme (Groupe PSA) merger. That's after shareholders from both companies voted in favor of the deal, effectively creating the fourth-largest automaker.
With that, two companies will have a staggering 15 brands under their wing. From the PSA Group, there's Peugeot, Citroën, DS, Opel, and Vauxhall. Meanwhile, FCA has Abarth, Alfa Romeo, Fiat, Fiat Professional, Lancia, Maserati, Chrysler, Dodge, Jeep, and Ram. This merger is to be a partnership of equals with a 50-50 split between FCA and Groupe PSA.
What makes this deal significant is the fact that almost all shareholders agreed to the merger. According to the two companies, an overwhelming majority are in favor of the transaction. More than 99% of the votes cast approved the decision. Because of that, Stellantis, the automotive manufacturing corporation resulting from the merger, has one thing left to do.
That's to issue the stock for the newly-formed corporation. Common shares will begin trading on the Euronext in Paris, on Mercato Telematico Azionario in Milan on Monday, January 18, 2021, and the New York Stock Exchange on Tuesday, January 19, 2021.
“We are fully aware of the fact that together we will be stronger than individually. The two companies are in good health. These two companies have strong positions in their markets,” said PSA CEO Carlos Tavares. As for FCA CEO Michael Manley, he believes that they can save up to 40 % by sharing platforms. There's also another 35% to be saved from components, and another 7 % from sales and administrative costs, not to mention additional savings from other supply chains and channels.
Combined sales for the two companies is at about eight million units as of 2019. That puts Stellantis behind the Volkswagen Group, Toyota, and the Renault-Nissan-Mitsubishi Alliance. The goal now is to expand the French and Italian brands' reach outside of Europe, while increasing the profitability of high-volume brands.