Fiat Chrysler and PSA Group have merged to form Stellantis.
The new company which will be headquartered in Amsterdam will stable the Dodge, Jeep, Alfa Romeo, Chrysler, Fiat, Maserati, Citroen, Peugeot and Vauxhall brands, among others, making it the fourth largest automaker in the world on volume and likely the third-biggest according to revenue projections.
In total, Stellantis now represents 14 different car brands and will manage operations in France, Italy and the United States.
The $US52 billion merger between PSA Group and Fiat Chrysler, which is expected to save both companies a short term forecast of $US6.1 billion, was first mooted in October of 2019 but fell victim to changing market conditions resultant from the COVID-19 pandemic.
On 4 January 2021, the merger was confirmed following shareholder approval from both companies before the deal was completed on 16 January 2021.
One key areas of focus for the new company is electrification, and the number of electrified vehicles in its lineup will meet what the auto industry anticipates as being a seismic shift in consumer demand.
Every new model the company launches from now until 2025 will offer “one electrified model for every newly launched global model.”
Stellantis currently offers 29 electrified vehicles on the market—including both fully electric and hybrid vehicles.
By 2021 this is projected to jump to 39. Under the plan Jeep will electrify its entire line up.
In the delivery segment a plug-in hybrid Chrysler Pacifica minivan will launch while plans for a Ram 1500 pickup with a mild hybrid system are already underway.
According to former CEO of PSA Group and new Stellantis CEO Carlos Tavares, the merger would add 25 billion euros in value to shareholders over the coming years due to projected cost cuts he said in a virtual launch.
“All of our employees and our management teams are totally focused on the value creation that is embedded on the merger of FCA-PSA and the creation of Stellantis,” he said.