French car group PSA and Italian-American carmaker Fiat Chrysler Automobiles (FCA) have completed a $ 52 billion (€ 42.89 million) merger and formally merged into Stellantis. The two vehicle manufacturers reported on Saturday (January 16) in a joint statement.
The newly formed group will be led by the current director of PSA, Carlos Tavares. The combined company’s combined sales are estimated at approximately 8.1 million vehicles, making it the fourth largest vehicle manufacturer in the world. Before the outbreak of a new coronavirus pandemic, which caused the so-called coronary crisis, total sales of FCA and PSA amounted to about 8.7 million vehicles a year and sales of 170 billion of euros.
Only Volkswagen, Toyota and Renault-Nissan produced more cars in 2019. Stellantis shares, based in the Netherlands, will start trading on Monday (January 18) in Milan and Paris and on Tuesday (January 19) in New York. The new group will produce a wide range of brands such as Peugeot, Citroën, Opel, DS and also Fiat, Alfa Romeo, Maserati, Lancia and Chrysler and Jeep.
The merger will help carmakers increase flexibility and efficiency “to meet new challenges in the areas of collectivity, electrification, shared and autonomous mobility in a rapidly changing environment,” they said in the fall of 2019 after the announcement of the merger plans. The European Commission approved the merger in December 2020 and after several months of review.
John Elkann, a descendant of the Italian Agnelli family, who founded Fiat and chaired the FCA board of directors, will chair Stellantis. FCA Executive Director Mike Manley will lead the U.S. division.
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