Tuesday, January 05, 2021

MONOPOLY CAPITALI$M
FCA and PSA merger receives the OK to create fourth largest automaker

Monday brought about big news for the automotive landscape as Italian-American automaker Fiat Chrysler Automobiles and France's PSA Group received the green light from shareholders to create Stellantis, a merged automaker that will soon become the fourth largest automaker in the world.
© Provided by Roadshow Say hello to a French-Italian-American carmaker, folks. FCA/PSA

The two automakers first came to the table to announce their intention to merge operations back in 2019 and agreed the deal, if regulatory bodies and shareholders approved it, would close in the early part of 2021. That date is set for Jan. 16 for a final merger completion, and days later, common shares of Stellantis will list on European stock exchanges and the New York Stock Exchange. Both automakers said in a joint statement stock will trade in Europe on Jan. 18 and Jan. 19 in the US

.
© Provided by Roadshow From left to right: Soon-to-be Stellantis CEO Carlos Tavares and Stellantis North American operations chief, Mike Manley. FCA

Although both automakers billed this as a 50/50 merger, PSA is technically taking over FCA in the final deal. PSA's current CEO Carlos Tavares will become CEO of the combined Stellantis, while FCA CEO Mike Manley will head up the automaker's North American operations. Manley will likely play a key role as PSA works to introduce the Peugeot brand back to North America, specifically, the US. Long before FCA and PSA declared their intent to merge, the French automaker was hard at work on creating a footprint to sell the French vehicles in the US once again. The timetable for Peugeot's return is somewhere between 2022 and 2023, though that could certainly change with the merger closing.

© FCA/PSA

Both automakers said the merged automaker will provide a massive bundle of cost savings and synergies as the two work to consolidate vehicle platforms, share powertrains and pour resources into future mobility and electric vehicle technologies. The two companies said they expect to save over $6 billion once FCA and PSA's operations completely streamline under one roof. PSA and FCA both promised to not close any auto plants as part of the merger, but what becomes of the 14 brands that will soon sit under Stellantis is less clear. This automaker will now include everything from Dodge , Chrysler, Alfa Romeo , Fiat, Peugeot, Citroen and more.

Fiat Chrysler, Peugeot shareholders OK merger to create Stellantis



Fiat Chrysler shareholders approved merger Monday with Peugeot to create Stellantis. File Photo John Angelillo | License Photo


Jan. 4 (UPI) -- Fiat Chrysler and Peugeot said Monday shareholders approved a merger of the two companies to form Stellantis.

Shareholders of Italian automaker Fiat Chrysler and French manufacturer Peugeot, also known as Group PSA, approved the merger to create Stellantis at meetings Monday by an overwhelming majority, with more than 99% of votes cast in favor of it, according to a Fiat Chrysler Automobiles press release.

The companies expect to close the merger on Jan. 16, and have already received the final regulatory clearances over the last month, including from the European Commission and the European Central Bank, according to the release. Following the merger, Stellantis' common shares will begin trading in the markets in Italy and Paris on Jan. 18 and on the New York Stock Exchange on Jan. 19.

The merger will include brands ranging from FCA's Maserati, Jeep and Ram to Peugeot's Citreon and Opel. It is expected to provide about $6.1 billion in annual cost savings, according to officials.

RELATED
Electric vehicle startup Canoo unveils futuristic delivery van

The companies announced plans for the merger to create the world's fourth-largest automaker, with 400,000 employees and $190 billion in net sales, in late October.

In their joint announcement, the companies pledged to bring the companies together to build on growing technology capabilities to become a "world leader for a new era in sustainable mobility."

The merger will also unite the companies brand strengths across luxury, premium, mainstream passenger car, SUV, trucks and light commercial, according to the announcement.

RELATED
Kia recalls 295,000 vehicles due to engine fire risk

Stellantis will be based in the Netherlands at Fiat Chrysler headquarters, and FCA Chairman John Elkann and Peugeot CEO Carlos Tavares will maintain their roles at the new company.

When FCA and Peugeot merge, the combined automaker Stellantis, worth roughly $50 billion, will be the fourth-largest automaker worldwide behind Volkswagen, Renault-Nissan and Toyota.

Tavares called the shareholders approval of the merger "a historical moment" for the company.


No comments:

Post a Comment