The union of the French PSA with the Italian-American FCA will give birth to the 4th largest carmaker in the world. Global expectation
The group resulting from the fusion of French PSA (Peugeot-Citröen) with the Italian-American FCA (Fiat Chrysler), which should become the world’s fourth largest automaker when the operation they both expect to be completed in the first quarter of 2021 is formalized, Will be called Stellantis.
The two partners announced this name in a statement on Wednesday, which comes from the Latin verb “stello” which refers to the brightness of the stars.
Stellantis: the typography that Fiat and Peugeot made official.
A spirit of “optimism”
“They are inspired,” they explained, “by this promising new alignment of legendary automotive brands and strong company cultures that by joining create one of the new leaders of the next era of mobility while preserving all the exceptional value of the set created, as well as the values of each constituent element “.
The Latin origin of the name wants to be a tribute “to the rich history of the two companies” that will constitute the new company. The allusion to astronomy “suggests the true spirit of optimism, energy and the capacity for renewal inspired by this merger that will change the automotive industry.”
Will the brands of the cars change?
PSA and FCA pointed out that the new name will be used exclusively to refer to the complex as a corporate brand and that its logo will be announced soon. The names and logos of all your existing car brands will remain unchanged.
The union is now pending first of all the response from the European Commission (EC), which a month ago announced the opening of an in-depth investigation to examine whether the operation would generate competition problems.
The EC justified its procedure mainly because of the risk that the new group would reduce competition in the van market.
The two companies expect synergies of around 3,700 million euros with a merger that would lead to a group that, with 8.7 million vehicles sold last year, represented a share of 9.5% globally.
Both FCA and PSA stem from significant previous mergers.
Fusion underway despite coronavirus
With the release of the new name “Stellantis”, PSA and FCA ratify their willingness to merge between late 2020 and early 2021, despite the coronavirus pandemic.
“Despite this unprecedented and unexpected situation, FCA and the PSA group are committed to carrying out the merger of equals to create a world leader in the mobility sector,” Fiat said in mid-May in a statement.
The two groups will continue “making progress on various aspects to complete the merger” and pledged to complete the operation by “late 2020 or early 2021,” FCA said in the statement.
The decision was confirmed although Fiat Chrysler suffered a net loss of 1.7 billion euros in the first quarter, due to the collapse of the world market due to the pandemic.
The group’s turnover, which includes the brands Fiat, Chrysler, Jeep, Maserati, Alfa Romeo, Dodge and Ram, fell by 16%, registering 20,560 million euros, against 21,710 million euros calculated by analysts.
In the first three months of the year, Fiat sold 818,000 vehicles, a figure 21% lower than the previous year.
The European automotive market fell 55.1% in March, affected by the closing of dealerships in many countries, according to the Association of European Automobile Manufacturers (ACEA).
The situation in April was worse: new car registrations collapsed from 97% in the UK, 97.5% in Italy and 89% in France.
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