Fiat Chrysler Automobiles (FCA) and Groupe PSA have confirmed that the two conglomerates are coming together to form what will become the 4th largest OEM in the world and this new merged brand will be called Stellantis.
This 50:50 merger between Fiat Chrysler Automobiles and Groupe PSA into this united entity called Stellantis comes off the back of productive talks between the two companies. This merger is expected to achieve 80 per cent completion within four years and incur an expenditure of €2.8 billion (Rs 22,166 crore approx). In terms of brands that the two companies bring to the Stellantis entity, Groupe PSA have Peugeot, Citroën, DS Automobiles, Opel, Vauxhall and more within their fold. FCA consist of Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Lancia, Maserati, Mopar, and Ram, along with performance sub-brands Abarth and SRT.
The two automotive conglomerates have explained the genesis of this unusual name, saying: “Stellantis is rooted in the Latin verb “stello” meaning “to brighten with stars”. It draws inspiration from this new and ambitious alignment of storied automotive brands and strong company cultures that in coming together are creating one of the new leaders in the next era of mobility while at the same time preserving all the exceptional value and the values of its constituent parts.”
Carlos Tavares, currently Chairman of the Managing Board of Groupe PSA, will take over as CEO of the Stellantis venture for a tenure of five years. Speaking about this landmark merger, Tavares said, “This convergence brings significant value to all the stakeholders and opens a bright future for the combined entity. I’m pleased with the work already done with Mike and will be very happy to work with him to build a great company together.”
The “Mike” he is referring to is Mike Manley, currently the CEO of FCA and someone who he will be collaborating closely with in the coming years. Manley too addressed this big announcement, saying, “I’m delighted by the opportunity to work with Carlos and his team on this potentially industry-changing combination. We have a long history of successful cooperation with Groupe PSA and I am convinced that together with our great people we can create a world-class global mobility company.”
Clearly, the duo have some big ambitions with this merger, and on paper, they have some massive brands with some serious potential to create a global automotive behemoth. We expect to hear more about how they plan to go about achieving these ambitions, though, and what lies in the future of this new company. From all the brands that fall under this new company’s ambit, only Jeep and Maserati currently operate on our shores. Citroën are on the cusp of entering our market, so it will be interesting to see how this new brand will navigate the big India breakthrough and what other names from their portfolio will follow suit. Watch this space.
Also Read: Citroen India Go Official; C5 Aircross to be Launched by 2020
