Fiat Chrysler and Peugeot merge into new corporation called Stellantis
The name will be used exclusively at corporate levelby Ciprian Florea, on LISTEN 03:50
Fiat Chrysler Automobiles (FCA) and Peugeot S.A. (Groupe PSA) confirmed that they will be entering a 50:50 merger. The new corporation will be called Stellantis and the merger is expected to be finalized in the first quarter of 2021.
Both groups will continue to sell their brands under their current names, with Stellantis to be applied at a corporate level only. The FCA and PSA merger comprises no fewer than 12 major automobile brands.
What’s with the name?
Don't know what Stellantis mean? Well, it's not even a word, but FCA and PSA explain tat it has origins in the Latin verb "stello," which means "to brighten with stars."
The companies go on to explain that it also "draws inspiration from this new and ambitious alignment of storied automotive brands and strong company cultures that in coming together are creating one of the new leaders in the next era of mobility."
The Stellantis name will be used exclusively at the group level, as a corporate brand. It will get its own logo, but you don’t have to worry about finding this name on the group’s cars. All 12 major auto brands will continue to operate under their own names in the merger.
How will the Stellantis merger work?
There are no specific details as to how Stellantis will operate in the near future, but it’s safe to assume that the two entities will share technology and platforms. It’s also likely that they will also use badge engineering for a few models, so expect Dodge and Chrysler, which offer only a handful of vehicles in the United States, to introduce new vehicles based on European designs soon.
It's not yet confirmed, but the merger could also bring new car brands in the United States.
There have been rumors that Citroen wants to launch its premium DS division in the U.S., and this merger seems like the proper time to do it. Peugeot could also cross the pond with a few models, although they could also be imported and sold with Chrysler badges. What’s more, the Opel-based vehicles once sold as Buicks under GM ownership could return to the States as Chryslers.
This isn’t the first merger between an American and a French brand
Stellantis won’t be the first corporation that includes an American and a French company. American Motors Corporation had a partnership with French carmaker Renault before being purchased by Chrysler in the 1980s. The alliance was announced in 1978 and resulted in AMC receiving $200 million in cash injections and credits, as well as rights to build Renault models in the U.S. The partnership ended in 1987 when Chrysler purchased AMC and turned it into its Jeep-Eagle division, which eventually developed into the Jeep brand we know today.
12 big car brands under one roof
The Stellantis merger will bring 12 major automobile brands under the same roof. There are four brands controlled by Fiat, four from Chrysler, and another four automakers under the PSA Group.
Here’s the complete list:
- Alfa Romeo
- Ram Trucks
Fiat also controls a commercial vehicle division (Fiat Professional) and the high-performance Abarth brand. The PSA Group also owns the Ambassador brand, purchased from India-based Hindustan Motors. PSA also purchased Opel and Vauxhall Motors from General Motors in 2017.
All the brands above produce more than 50 different cars, SUVs, vans, and trucks between them as of 2020.