It was in the final months of 2019 that Groupe PSA and FCA (Fiat Chrysler Automobiles) announced their intention to merge. After just over a year — even taking into account the disruption caused by the pandemic — the merger process is formally concluded and as of today, the brands Abarth, Alfa Romeo, Chrysler, Citroen, Dodge, DS Automobiles, Fiat , Fiat Professional, Jeep, Lancia, Maserati, Opel, Peugeot, Ram and Vauxhall are now all together in the group STELLANTIS.
The merger results in a new automotive giant with combined worldwide sales of 8.1 million vehicles that will ensure the synergies and economies of scale needed to more effectively overcome the challenges inherent in the transformation that the automotive industry is undergoing, particularly in terms of electrification and connectivity .
Shares of the new group will begin trading on January 18, 2021 on Euronext, in Paris, and on Mercato Telematico Azionario, in Milan; and from January 19, 2021 on the New York Stock Exchange, under the registration symbol “STLA”.
Leading the new Stellantis group will be the Portuguese Carlos Tavares who will be its CEO (executive director). A challenge worthy of Tavares, who after reaching the leadership of Groupe PSA, when it was in serious difficulties, transformed it into a profitable entity and one of the most profitable in the industry, with margins superior to many other groups.
Subscribe to our newsletter
It will now be up to him to achieve everything that was promised, such as a cost reduction in the order of five billion euros, without this implying the closing of factories.
According to the now former FCA CEO, Mike Manley — who will become the head of Stellantis in the Americas — the cost reduction will essentially be due to the synergies between the two groups. 40% will result from the convergence of platforms, cinematic chains and optimization of investments in research and development; 35% of savings on purchases (suppliers); and 7% in sales operations and general expenses.
In addition to the delicate internal orchestration between all the brands that make up Stellantis — will we see any disappear? — Tavares has to turn around issues such as the group's industrial overcapacity, the reversal of fortunes in China (the world's biggest car market), and the rampant electrification the industry is undergoing today.