Fiat Chrysler Automobiles (FCA) and Groupe PSA have announced that investors have given the green light to their merger, which will result in the creation of the world’s fourth largest automaker. Investors in each entity backed the US$52 billion (RM208 billion) merger with approval rates above 99% of the votes cast, Reuters reports.
The two parties said that they expect to complete their tie-up on January 16, which is well ahead of the project’s planned end of Q1 completion. Shares in Stellantis, the new group that will result from the 50:50 merger, will start trading in two weeks.
Groupe PSA chief executive and Stellantis’ future CEO Carlos Tavares said the company was ready for the merger. He will have plenty to do, including rationalising a sprawling empire and addressing massive overcapacity at plants as well as charting a new focus on cleaner cars and electrification.
Meanwhile, FCA CEO Mike Manley, who will head Stellantis’ key north American operations, said 40% of the expected synergies from the merger will come from convergence of platforms and powertrains as well as from optimising R&D investments. He said that more than a third of synergies would be driven by savings on purchases, while another 7% would come from savings on sales operations and general expenses, the report added.
Stellantis will have 14 automotive brands under its umbrella, with FCA represented by Fiat, Chrysler, Maserati, Jeep, Dodge, Ram, Alfa Romeo, Abarth and Lancia. As for PSA, it has Peugeot, Citroen, Opel, DS and Vauxhall. The Stellantis name will be used exclusively as a corporate brand name, and the names and logos of the merged group’s various brands will remain unchanged.
With an annual global production of around eight million vehicles and revenues of more than 165 billion euros (RM811 billion), the new entity is expected to play a key role in the auto industry’s massive push into the new era of electrification. Both companies have reiterated their pledge to not close any plants.
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