The merger of automotive giants PSA and FCA has been officially made official and will take effect on January 16 with the formation of the joint company Stellantis, headed by former PSA chief Carlos Tavares. Other managerial positions will be confirmed in the coming days.
Stellantis is the fourth largest car manufacturer in the world when the latest sales data of the hitherto separate groups are taken into account. PSA and FCA are expected to jointly produce 8.7 million cars a year, placing them just behind the Volkswagen Group, Toyota and Renault-Nissan alliance. The new joint venture will be the third largest in the world in terms of revenue, with an annual turnover of EUR 170 billion.
The merger will bring benefits to both groups. PSA will gain access to the U.S. market, and the FCA will be able to use the newer electrified PSA platforms. New joint projects are being prepared, such as the development of autonomous driving technology and connected vehicles.
Ownership of Stellantis will be split 50:50 between PSA and FCA shareholders. Existing PSA investors will receive € 5.5 billion in dividends, and FCA shareholders will distribute € 3 billion.
PSA’s entry into the North American market will not be a priority in the near future, as the FCA is already well established there. Tavares said that everything will be well thought out in the next 12 months, while the details of the merger are being completed.
If the U.S. tightens emissions regulations, the PSA group could begin marketing its low-emission models. Tavares said that the knowledge and technology used in the electrification segment in the European market will be very valuable assets that can be brought to the United States for an appropriate level of improvement.
Source: Nacionalna Klasa by www.nacionalnaklasa.com.
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