Fiat Chrysler Automobiles and the French Peugeot manufacturer PSA have officially announced their merger on Friday. The merged entity, Stellantis, has instantly emerged as the world’s third largest automaker.
FCA, the Italian-American automobile joint venture, and PSA issued a press release on Friday to announce the completion of their 52 billion-dollar merger. The two companies announced a merger plan in October 2019, and the merging plan was approved at their respective shareholders’ meetings early this month after the delay due to the COVID-19 pandemic
The annual sales of Stellantis in 2019 reached approximately 8 million units, which accounts for 9 percent of the global automobile market. Stellantis is expected to surpass General Motors, and rank No. 3, following Volkswagen and Toyota. Under the merger agreement, Stellantis will manage 14 auto brands including Peugeot, Citron, Chrysler, Jeep, Alpha Romeo, and Maserati, and will have 400,000 people on its payroll worldwide.
Stellantis will be listed on stock exchanges in Milan, Paris, and New York on Tuesday. PSA Chief Executive and future Stellantis CEO Carlos Tavares will announce plans on post-merger strategy and related matters in a press conference on Tuesday.
With the merger, FCA and PSA is expected to save 6 billion dollars, including R&D costs. The fund could be invested in future vehicles such as electric cars and self-driving vehicles. Company name “Stellantis” is stems from Latin word “stello,” meaning “to brighten with stars.”
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