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In recent years, Fiat Chrysler Automobiles has been looking to get married. After their advances were rejected by companies like General Motors and Volkswagen, a merger with the French Renault seemed possible, until FCA chief Sergio Marchionne died in 2018. Then, in October, news came that the FCA had found a new French friend – Peugeot SA. On Monday, Peugeot shareholders voted to approve the merger.
The new company, called Stellantis, will be headquartered in Amsterdam, the Netherlands, with shares listed on the stock exchanges of Milan, New York and Paris. The combination of its 14 brands will make Stellantis the fourth largest automaker in the world, bringing Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Lancia, Maserati and Ram (FCA brands) along with Citroen, DS, Opel, Peugeot, and Vauxhall (PSA brands) under one roof.
As far as mergers are concerned, this seems quite sensible. Jeep and Ram have been FCA’s two true success stories, meaning the company has had to rely on sales in North America. PSA, on the other hand, has no real presence in North America, but has strong sales in Europe, as well as more modern vehicle architectures and a more advanced electrification program.
It is possible that some of these 14 brands get in the way. Chrysler is reduced to just two models, the rather good Pacifica minivan and the rather antediluvian 300C. Things are even worse at Lancia, which now manufactures only a single vehicle, a small hatchback called Ypsilon. However, FCA said it has no plans to close any factories.
The current head of the PSA, Carlos Tavares, will become the CEO of Stellantis, with the president of FCA, John Elkann, assuming the post of president of Stellantis.