Fiat Chrysler and PSA sealed their long-awaited merger on Saturday, January 16, to create Stellantis, the world’s fourth-largest auto group with deep enough pockets to fund the shift to electric driving and take on bigger rivals Toyota and Volkswagen, reported Reuters.
It took over a year for the Italian-American and French automakers to finalize the US$52 billion deal, during which the global economy was upended by the COVID-19 pandemic. They first announced plans to merge in October 2019, to create a group with annual sales of around 8.1 million vehicles.
“The merger between Peugeot S.A. and Fiat Chrysler Automobiles NV that will lead the path to the creation of Stellantis NV became effective today,” the two automakers announced in a statement.
Now analysts and investors are turning their focus to how Carlos Tavares, CEO of Stellantis, plans to address the huge challenges facing the group – from excess production capacity to a woeful performance in China.
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