Fiat Chrysler Automobiles and Groupe PSA will become the world’s fourth-biggest car company after their shareholders today (Jan 4) approved a merger of the US-Italian and French manufacturers.
The vote’s importance was hailed as ‘historic’ by Groupe PSA chief executive Carlos Tavares and Fiat Chrysler chairman John Elkann at separate meetings.
The new company is to be called Stellantis. However, before the merger is finalised, shares will have to be launched. They will be traded in Milan, New York and Paris.
Elkann told the virtual shareholders’ meeting: ‘We are living through a profound era of change in our industry.
‘We believe that the coming decade will redefine mobility as we know it.
‘We and our merger partners at Groupe PSA are intent on playing a leading role in building this future. It is this intention that has brought us together.’
Stellantis will be able to produce 8.7m cars a year – behind Volkswagen, Toyota and Renault-Nissan – and create five billion euros annually.
The marriage of the car companies that helped write the industrial histories of the US, France and Italy is built on the promise of cost savings.
But analysts say it remains to be seen if Stellantis will be able to keep jobs and heritage brands in a global market still suffering from the pandemic.