MotorBiscuit has covered how Fiat Chrysler Automobiles, or FCA, has been in merger talks with Peugeot Citroen Automobile, or PSA. Those talks have been ongoing for a long time. Today, however, there was a press release from FCA announcing that the merger will be official in the extremely near future. Stellantis is real.
FCA and PSA officially merge into Stellantis
According to the press release, the FCA and PSA merger will be finalized on January 16, 2021. But, the first day of trading in Paris, France, and in Milan, Italy will be Monday, January 18, 2021. Since Monday is a Holiday in the USA, trading will begin on Tuesday there. In essence, the FCA name will officially be retired in favor of the new name formed by the merger, Stellantis.
On Monday, at 2:50 AM EST, the Euronext exchange’s opening bell will be rung in by officials from Stellantis, John Elkan, Chairman, and Carlos Tavares, Chief Executive Officer. A few minutes later, at 3:00 AM EST, the gentlemen will also ring the Borsa Italiana exchange’s opening bell. The ceremonial moment will repeat on Tuesday at 9:25 AM EST for the New York Stock Exchange.
What does the merger mean?
My colleague, Thom Taylor, has postulated what this Stellantis merger may mean. For example, there are some overlapping products between the two companies. It is likely that some of those overlapping vehicles will not survive for too long. You can read his article about it here.
Overall, the automotive manufacturers are now free to mix their American and French automotive DNA as they see fit to meet their market areas. The sharing of platforms is inevitable. So, it is conceivable that as quickly as the next two years, different nameplates will be seen in dealerships for consumers in the USA and for the consumers in France and Italy as well. It is important to note that there will not be Stellantis dealerships popping up. Instead, Jeep dealerships will remain Jeep, Ram will remain Ram, and the same goes for the other individual brands.
What brands are coming together under Stellantis?
FCA is a company that houses the Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Lancia, Maserati, and Ram brands. PSA is also diverse with its own in-house brands. Under their umbrella, there is Peugeot, Citroen, DS Automobiles, Opel, and Vauxhall. The new Stellantis has to figure out, and likely already has figured out just how to manage it all.
The late Sergio Marchionne, the former head of FCA, was looking for a way to merge that company with another auto manufacturer. That was years ago. Now, it looks like it is finally happening. Stellantis is the fruit of many office meetings and regulatory hurdles that needed to be surpassed on the way to a completed merger. The result is that FCA is now under a new umbrella starting Monday. That new company, Stellantis, when it starts, will be considered the fourth-largest automaker in the world.