It's official. Years have passed since Groupe PSA (Peugeot Société Anonyme) and FCA (Fiat Chrysler Automobiles) proposed to each other, the two brands are now one. The result is Stellantis, and it took more than two years in the making. So, what does this mean for the automotive industry?
This unprecedented merger makes Stellantis the fourth-largest automaker in the world. It also makes then the world's largest in terms of product portfolio. If you combine all the marques from FCA and PSA, Stellantis has 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.
To put things in perspective, let's compare them to the three largest automakers. These are the Volkswagen Auto Group, Toyota Motor Corporation, and Renault Nissan Mitsubishi Alliance.
It's not just three brands for the Alliance. Aside from Renault, Nissan, and Mitsubishi, the group also includes Infiniti, Renault Samsung, Dacia, Alpine, Datsun, Venucia, and Lada, putting the total at ten brands. By comparison, Toyota Motor Corporation seems small with six brands. Included in the group are Lexus, Daihatsu, Hino, Ranz (a Chinese subsidiary), and Gazoo Racing. As for the Volkswagen Auto Group, they have 14 automakers under their wing. Including Volkswagen, VAG has Audi, Bentley, Bugatti, Jetta (another China-only marque), Lamborghini, MAN, Porsche, Scania, SEAT, Skoda, TRATON, Volkswagen Caminhões e Ônibus, and VW Commercial Vehicles.
But despite having 15 brands under the merger, why is Stellantis just fourth in global sales? It's all down to presence. Groupe PSA has a bit of a handicap since all their products are not sold in North America. At the same time, not all countries in Asia have Peugeot, Citroen, Opel, or Vauxhall distributors, further limiting sales. That's where the FCA brands step it.
Unlike PSA, their brands are available worldwide. Jeep, for instance, expanded FCA's horizons beyond the U.S with healthy sales in Asia, while Fiat has a strong representation in Latin America. It's some of those elusive markets that Peugeot wants a part of with Stellantis.
So, what can Stellantis do to help them overtake the Renault Nissan Mitsubishi Alliance? FCA can help Peugeot expand in North America, Latin America, and Asia. On the other hand, PSA can rejuvenate Fiat who's sales are at their lowest since 1985. Now, the challenge for them is to make all 15 brands work together to become the third-largest automaker in sales.
For FCA and PSA, the wedding is finished, but the marriage has just begun. They must make Stellantis thrive if they want to achieve their goal of being in the top three.