A Fiat Chrysler it’s at PSA sealed their expected merger today (16) to create the Stellantisbigger room group automotive the world with enough money to finance the switch to electric steering and face bigger rivals, Toyota e Volkswagen.
It took more than a year for Italian-American and French automakers to finalize the $ 52 billion deal, a period in which the global economy was affected by the Covid-19 pandemic. They announced the merger plan in October 2019, to create a group with annual sales of about 8.1 million vehicles.
“The merger between Peugeot and Fiat Chrysler, which will lead the way for the creation of Stellantis, has become effective today, ”the automakers said in a statement.
The action by Stellantis, which will be chaired by the current chief executive of PSA, Carlos Tavares, will begin trading in Milan and Paris on Monday, and in New York on Tuesday.
Now, analysts and investors are turning their focus to how Tavares plans to tackle the enormous challenges the group faces – from excess production capacity to poor performance in China.
Tavares will hold his first press conference as president of Stellantis on Tuesday, after ringing the Nyse with the president John Elkann.
A FCA and PSA said Stellantis can cut annual costs by more than € 5 billion without plant closures, and investors will be eager to get more details on how it will do so.
Like all global automakers, Stellantis needs to invest billions in the coming years to transform its range of vehicles into the electric age.
But other urgent tasks are looming, including reviving the group’s operation in China, rationalizing its huge global empire and dealing with huge overcapacity.
The President of the FCA Mike Manley – who will head Stellantis’ main operations in North America – said that 40% of the expected synergies will come from the convergence of platforms and engines and the optimization of investments in R&D, 35% savings in purchases and another 7% savings in operations sales and overhead. (With Reuters)
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