Fiat Chrysler, PSA Group Merge to Form World’s Third Largest Automaker, Stellantis

By Paul Riegler on 17 January 2021
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A parade of Citroën 2CVs – the “deux chevaux” – on the streets of New York

Peugeot S.A. and Fiat Chrysler Automobiles announced the completion of their merger, forming a new parent company, Stellantis.

Stellantis, derived from a Latin word meaning “to brighten with stars,” will be the world’s third-largest auto maker by sales, according to 2019 figures.

The move comes some 13 years after Chrysler’s so-called merger of equals with Mercedes-Benz parent Daimler-Benz failed after a nine-year period.

The name Stellantis will be used only as the corporate name, while the name of the Stellantis’ 14 marques and models will remain unchanged.

FCA’s portfolio of automakers includes Chrysler, Dodge, Jeep, Ram, Fiat, Alfa Romeo, and Maserati, while PSA is the parent of French brands Peugeot and Citroën, the upscale offshoot Citroën DS, as well as of two former General Motors units, Opel and Vauxhall. In addition, PSA acquired Chrysler’s failing Chrysler Europe unit in 1979 although the remnants of that were dissolved in 1992.

The two most successful brands on the list are Jeep and Peugeot.

The new automaker will start trading Monday in on the Paris and Milan exchanges and Tuesday on the New York Stock Exchange.

The merger was first announced in December 2019, following a failed attempt by FCA to merge with Renault.  The European Commission approved the fusion of the two automakers in December 2020. Shareholders approved the deal on January 4, 2021.

(Photo: Accura Media Group)