Specialists in the automotive industry have been talking for a long time about the fact that the field needs consolidation. It is, perhaps, the only strategy by which some brands can withstand the market in a fierce competition and with a clear direction towards electric. That’s how Stellantis came about.
The car industry is looking to consolidate, and smaller or larger brands even prefer to clash with rivals rather than disappear from the market. The future is now drawn by electric and hybrid, but the moment when the market will inevitably move to autonomous models is not far away.
So did Stellantis, which became the fourth largest car group in the world. It is, in fact, the entity resulting from the merger between the Fiat Chrysler (FCA) groups and the French group PSA – that is, the owner of the Peugeot, Opel and Citroen brands.
Stellantis, the new giant in the car industry
The new carmaker created by the merger of the groups will be called Stellantis, a name inspired by the Latin word “stello”, which means “star-lit”. The two car companies announced that the name was chosen following a joint decision-making process. Stellantis will be the name of the company created and will not appear on the grid of any model, being the name of the new manufacturer at the corporate level.
The name is now official – European Union antitrust regulators have approved the merger between Fiat Chrysler Automobiles (FCA) and French group PSA, after carmakers pledged to meet the industry’s double challenge: financing environmentally friendly vehicles and the coronavirus pandemic (Covid-19), writes Reuters.
Peugeot-Citroen and Fiat Chrysler completed their merger plans in December 2019 and estimate that the process will be completed in the first quarter of 2021. The CEO of Peugeot Citroen, Carlos Tavares, has been appointed CEO of Stellantis for a period of 5 years. .
Stellantis will be in the top three manufacturers worldwide, with deliveries of 8.7 million vehicles worldwide. The group will contain 13 brands, including Peugeot, Citroën, Opel, Dodge and Jeep.