Fiat Chrysler and PSA merge to form StellantisJanuary 18, 2021
Fiat Chrysler Automobiles and PSA Group completed a $ 52 billion merger and officially merged into Stellantis on Saturday.
The merger will create an automotive group with aggregate annual sales of around 8.1 million vehicles and sufficient equity to finance the transition to electric vehicles and to fight bigger competitors Toyota and Volkswagen Group.
“The merger of Peugeot SA and Fiat Chrysler Automobiles NV, which will kick-start the Stellantis NV, takes effect today,” the two automakers said in a statement.
It took Italian-American and French automakers over a year to complete the deal, while the global economy was shaken by the COVID-19 pandemic. They first announced plans for the merger in October 2019.
Stellantis shares will start trading in Milan and Paris on Monday and New York on Tuesday. PSA CEO Carlos Tavares will hold his first press conference as CEO of Stellantis on Tuesday after ringing the NYSE bell with Stellantis chairman John Elkann, who is the head of FCA.
The FCA and PSA said Stellantis could cut annual costs by more than € 5 billion without plant closings, and investors will be interested in more details on how this will be done. Like all global automakers, Stellantis will need to invest billions in the coming years to transform its lineup to meet today’s demands.
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