Trans-Atlantic merger creates new automotive conglomerate
New entity to be worlds fourth largest automaker.
Stellantis might sound like something out of a fictional Jules Verne novel, but it’s actually the intriguing new name of what will soon be the world’s newest automotive alliance.
The name has been chosen to describe the entity that is due to be formed between two of the world’s major automotive conglomerates – the Italian-American Fiat Chrysler Automobiles and the French Groupe PSA.
US website thedrive.com reports the 50:50 merger will be valued at $US50 billion and will make Stellantis the world’s fourth largest automaker.
An announcement said the name had its roots in the Latin verb “stello,” meaning “to brighten with stars,” and paid tribute to the rich history of the respective founding companies. The evocation of astronomy apparently captures the “spirit of optimism, energy and renewal driving this industry-changing merger”.
The Stellantis name will be used exclusively at the group level as a corporate brand, with a new logo that’s yet to be unveiled.
However, the names and the logos of the Group’s constituent brands, including Fiat, Chrysler, Peugeot and Citroen, will remain unchanged.
Completion of the merger is expected to occur in the first quarter of 2021, subject to conditions, including approval by both companies’ shareholders at their respective extraordinary general meetings and the satisfaction of antitrust and other regulatory requirements.
Fiat Chrysler Automobiles (FCA) is a global automaker that designs, engineers, manufactures and sells vehicles in a portfolio of brands, including Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia, Ram and Maserati.
It also sells parts and services under the Mopar name and operates in the components and production systems sectors under the Comau and Teksid brands. FCA employs nearly 200,000 people around the globe.
Groupe PSA is likewise a global automaker with a portfolio of five car brands – Peugeot, Citroen, DS, Opel and Vauxhall – which also provides a wide array of mobility and smart services under the Free2Move brand.
Groupe PSA is involved in financing activities through Banque PSA Finance and in automotive equipment via Faurecia.