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The automotive industry welcomed a new player on 18 January 2021, as Fiat Chrysler Automobiles (FCA) and PSA Group completed their merger to form Stellantis. The new company, with an ambitious goal to become the greatest, not the biggest, aims to create added value for all stakeholders and the communities it operates in.
The merger, which received backing from both companies' shareholders with 99% of votes cast in favour, was approved by the European Commission on 21 December 2020, following an anti-competitive investigation. The European Commission and the European Central Bank have given regulatory clearances for the merger.
Stellantis, the new name of the merged automotive group, is projected to have annual sales of 8.1 million vehicles and an adjusted operating profit of approximately €12 billion. Reuters estimates that Stellantis' revenues for 2019, excluding parts-supplier Faurecia, could reach €165 billion, indicating the impact of COVID-19 on the automotive industry in the last year.
The combined net revenues for FCA and PSA for the first half of 2020, excluding Faurecia, were approximately €51.8 billion. The merger could potentially reduce competition for light commercial vehicles (LCVs) below 3.5 tonnes in the European Economic Area (EEA) and 14 EU member states, including the UK. However, the new company aspires to maintain a competitive edge while focusing on sustainable growth and innovation.
Stellantis CEO, Carlos Tavares, is scheduled to hold a digital press conference on 19 January to discuss the company's vision, strategy, and plans for the future. The press conference and stock trading events are scheduled for 19 January in New York, following 18 January in Milan and Paris. Stellantis shares began trading in Milan and Paris on 18 January, followed by New York on 19 January.
The new board of directors, appointed by Stellantis, includes Carlos Tavares as CEO, John Elkann as chairman, and nine other non-executive directors. John Elkann, the Chairman of the Supervisory Board of Stellantis N.V. after the merger between Peugeot S.A. and Fiat Chrysler Automobiles N.V., will lead the board.
Stellantis will oversee 14 brands, including Citroen, DS, Opel, Peugeot, Fiat, Chrysler, Jeep, Maserati, and Alfa Romeo. The merger is a significant step towards consolidating the automotive industry and creating a stronger, more competitive player in the global market.
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