Who is Stellantis

The Rise of Stellantis: Understanding the Merger of Groupe PSA and FCA

Stellantis is a multinational automotive manufacturing company that was formed in December 2020 through the merger of French automaker Groupe PSA (Peugeot, Citroën, DS Automobiles, Opel and Vauxhall) and Italian-American automaker FCA (Fiat Chrysler Automobiles). The merger was approved by shareholders of both companies, as well as by the European Commission.

FCA, which was founded in 2014, is the parent company of well-known automotive brands such as Chrysler, Dodge, Ram, Jeep, Alfa Romeo, and Maserati. FCA had struggled financially in recent years and was looking for a partner to help improve its financial position and invest in new technologies such as electric and autonomous vehicles.

Groupe PSA, on the other hand, has a strong presence in Europe and has been successful in developing and producing electric vehicles. The company also has a strong technological and engineering base, which could benefit FCA's brands in the long run.

The merger of these two companies creates a global automotive giant that brings together the strengths of both companies and allows them to better compete in an industry that is undergoing significant changes. The merger is expected to generate significant cost savings and operational efficiencies, as well as provide the resources necessary to invest in new technologies and products. The new company will also have a broader geographic presence, which will allow it to better serve customers in different regions.

In summary, Stellantis was formed as a merger between Groupe PSA and FCA, creating a global automotive giant that brings together the strengths of both companies, allowing them to better compete in an industry that is undergoing significant changes such as investing in new technologies and products, generating significant cost savings and operational efficiencies and having a broader geographic presence.