In the end, it’s only a form: just before Christmas, after the EU Commission approved the merger of two major corporations, PSA and FCA, shareholders gave the green light to the mega merger with broad support.
Current PSA CEO Carlos Tavares will head the new industrial giant’s official name Stellantis (Latin “stellar”: to shine through the stars). Under his leadership, Volkswagen became the fourth largest carmaker in the world after the creation of Toyota and Renault-Nissan. With 400,000 employees worldwide, it will produce 8.7 million cars a year and generate sales of 187 billion Swiss francs.
From Abarth to Vauxhall
14 traditional car brands will come together under the umbrella of new car star Stolantis. The French PSA Group includes Citroen, DS, Peugeot, Opel and the British Offshoot Vauxhall. The Italian-American FCA Group also includes Abert, Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Lancia, Maserati and Ram. Whether all these brands will survive the mega merger is literally in the stars.
Strict innovation towers can start with FCA brands. In contrast to the successful PSA, the FCA seems to be exhausted: the burden of the merger with Chrysler, the tough sales, and, above all, the lack of investment in new technologies. There is also additional capacity. With the exception of the best-selling Fiat 500, the FCA core brand, Fiat, has burned out. Jeep shines with more expensive models, and Dodge / Ram’s pick-up business is doing well – with 90 percent of FCA’s profits coming from the US. Alfa Romeo’s resume was a success. On the contrary, electrification was rapid.
Both will benefit
So the FCA will benefit greatly from the merger: both groups are strong in compact cars, and can make significant savings with the combined platforms – which should be four billion francs a year. PSA has long been e-mobility: FCA will line up. It’s obscure in the premium segment: PPEs are low here, so thanks to FCA help. PSA also gains access to the United States. So Peugeot is returning to the US market, which was once abandoned. Necessary investment in CO2-Conclude discounts, electrification, networking, autonomous driving or mobility services more easily. So it is clear: FCA will benefit more from the merger, but PSA will also benefit significantly.