The merger of Fiat Chrysler and Groupe PSA into the newly named Stellantis N.V. is now complete, the company announced in a media release published this week.
FCA and Groupe PSA first signed a binding agreement to enter a 50-50 merger in late 2019. The two companies said previously that by merging together, they will mutually benefit from each other’s large-scale investments in new vehicle platforms, electric and internal combustion powertrains, autonomous vehicles and other technologies.
FCA’s brands include Jeep, Dodge, Ram, Fiat, Chrysler, Alfa Romeo, Lancia, Abarth and Maserati, while Groupe PSA’s portfolio includes Peugeot, Citroën, DS, Opel and Vauxhall. It’s not clear if all of these brands will survive in all markets they currently operate in under Stellantis.
Stellantis, now the world’s sixth-largest automaker by sales, will enjoy a strong presence in Europe thanks to brands like Fiat and Peugeot, while its North American market share will also be decent through the Ram, Jeep and Dodge brands in particular. It will be looking to grow its sales in China, however, previously setting itself a goal of selling 250,000 units in the country annually by 2021. GM, by comparison, consistently sells about three million vehicles in China annually.
Former Groupe PSA chief executive officer Carlos Tavares has been named as the CEO of Stellantis, while Fiat heir John Elkann will serve as chairman. Tavares will hold his press conference as CEO of Stellantis on Tuesday after Elkann and him appear on the NYSE floor to ring the opening bell. Shares in Stellantis will start trading in Milan and Paris Monday and in New York on Tuesday.
PSA CEO Carlos Tavares and FCA CEO Mike Manley
FCA CEO Mike Manley will also play a key role in Stellantis operations, heading up its North American business after he took over as FCA CEO following Sergio Marchionne’s death in the summer of 2018.
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Comments
I hate mergers like these. Imagine how much fun March madness would be if there was only 4 competitors. I understand the tactic, if you can’t beat your competition, monopolize them. Granted Stellaris isn’t the only company doing this. Ford and GM have done this and no one is worse at this than VW group.
Next is “Moland” from Seinfeld.
Can we now accept the fact that there are only “TWO” American car companies!
Stellantis – “ornamented or dotted with stars” or “resembling a star”, Really? 🤢
tesla doesn’t count? its market cap dwarfs gm and ford combined.
Tesla 2020 deliveries 499,550
GM… 2019 deliveries 7.7 million vehicles
Ford 2019 deliveries 5.4 million vehicles
Sorry, didn’t care to spend much time looking for GM/FOMOCO 2020 totals.
So no, I don’t, market value is a “here today, gone tomorrow” slippery slope.
You are right, of course – but it’s been that way for awhile. FCA was already a foreign corporation and what passes for Chrysler/Mopar were just house brands thereof. The other issue is that the remaining two are building an increasing percentage of their production offshore. Personally, I won’t buy a Chinese Buick or Mexican Chevy while they’re closing plants in North America.
Mexico is located in North America, last time I checked.
stellantis sounds like erectile dysfunction meds.
A lot of car companies sound like medication. Examples
Constipation a problem. Try BMW
Quit smoking with Stellantis
If experiencing Suicidal thoughts, immediately stop using Ford Mustang.
Toyota may cause nausea, heartburn, indigestion, upset stomach, diarrhea.
For erections lasting longer than 4 hours, stop using Corvette and seek immediate medical attention.
“Now that’s funny right there I don’t care who you are. That there is funny.”
FCA compact car in America? Hoping GM to bring something back for that segment
This is the tale of two companies struggling on their own merging to struggle together.
To make it here they have to do it on price and I am not sure they can do that.
Jeep and Ram will fund them but if based on French or Fiat platforms that is not going to help.
The same people that infected the world with the Wuhan virus in order to allow China to make deals of a lifetime as oil and economies crashed will now own 10% of Jeep as a result of the FCA – PSA merger. It’s a darn shame that China will now profit from Jeep….and all you Jeep supporters will now be writing checks to Wuhan….you know…the haters of America that incubated a virus in a lab, stuck it deep inside a bat cave to fool the world that it came from nature….and as the world went into a panic lockdown, China bought oil assets for pennies on the dollar…and even entire governments like Chile……in exchange for vaccines….and now Chile has to give China lithium for next to nothing….and you Jeep owners will now finance China’s future murderous ways…..as Xi and the CCP laugh.
Leaving your lunatic bragging about China and SARS-CoV-2 aside, who in your imagination owns 10% of Stellantis? I have followed the merger process quite closely, including the limitations imposed on the larger shareholders, but I can’t remember any of them with 10%.
Please advise.
Dongfeng Motor Group owned 14% of PSA before the FCA-PSA merger. PSA was the larger company and was thus the buyer. FCA was the seller. Dongfeng Motor Group had to sell many shares in order for the merger to go through because it looked bad politically for one Chinese company to be such a significant shareholder. The top 2 Chinese owners are Dongfeng Motor Group that has 5.6% and UBS Securities Co., Ltd. (Chinese investment bank) has just bought millions more shares so its at about 4%. There are many more Chinese shareholders so 10% is an underestimate. Stellantis is 100% focused on China with all sorts of partnerships planned. China was always interested in Jeep and tried to buy Jeep from FCA. Stock just started trading in Europe and will start on NYSE tomorrow….so I’m sure China will be buying more after it made $trillion on the Wuhan Virus.
And as far as COVID-19 goes, yes I am a lunatic because I believe that restricting international travel and shutting down our borders restricts and slows a pandemic….clearly you and the WHO are the smart scientific ones because you believe that the worst thing you can do during a pandemic is to shut down international travel. China vaccinated its CCP and military over a year ago (because they knew everything about this virus as it emerged). They were even trying to license the most effective treatment in early January 2020.
So if I’m so dumb and if you’re so smart, please explain how China knew what the most effective medical treatment was the instant this thing “emerged from nature”? Even Tyson Bell can’t riddle me that one, and he works at the same university that I graduated from….because he knows the only rational explanation….and it has nothing to do with nature.
OK, you found the facts re Dongfeng’s share. I think the 5.6% is correct.
But then you dive again in the fake news morass by moving UBS from cosy Switzerland to China. UBS, originally „Union de Banques Suisses“, has its seat in Zürich and Basel, the largest and third largest cities of Switzerland. Check it out in en.wikipedia dort org or direct at UBS dot com. I have not heard that UBS is claiming a seat on Stellantis’ board of directors, neither of UBS buying a big number of shares of Stellantis at all. As far as I can see, UBS has nowhere tried to take a controlling stake of another company (except, maybe, banks), but sees it only as financial investment.
Dongfeng is the joint-venture partner of PSA (and hence now of Stellantis) in China. Dongfeng came, together with the French state via its investment arm BPIfrance to the rescue of PSA, when PSA was in deep financial troubles. If PSA would go bust, this would have been a severe damage to Dangfeng. This is no longer necessary, and therefore Dongfeng could reduce its share in PSA and consequently in Stellantis.
If other chinese speculators had shares in either PSA or FCA or have purchased yesterday is unknowable. Check the volume traded yesterday in Milano and Paris on the Stellantis web page. Any way, it is irrelevant for directing the course of the company.
I don’t know if and how parts of FCA had a presence in China, and how and with which Chinese partner.
What Stellantis plans to concentrate on … don’t know. They have open problems in Europe and North America, and a comparatively (with GM or VW) small footprint in China. BTW, Stellantis has, what the above article did not mention, a strong position in South America. Citroën had since decades a factory in Argentina and Peugeot in Brasil (I believe), and FIAT was a leading brand in passenger cars and light commercial vehicles in Brasil (now together with the RAM brand), competing with GM-Chevrolet for the top position.
I can’t know what Stellantis plans for China, if there are any established plans already, but sure, they have to try and get a larger market share. But the news of some years ago that China has lifted the requirement for foreign automobile manufacturers to do their business in a joint-venture with a Chines partner could apparently not yet penetrate in the fake news parallel universe where you are getting your imaginations from.
Get some facts via the Web based press conference on this Tuesday. You might have to register for accessing it.
I see an important task to be addressed immediately, and that is the development of a software platform for all brands, an automobile operating system, just as Daimler does for their passenger car business. And resume to work on fuel cells to generate the electricity for electric cars. The Opel development center in Rüsselsheim had worked on fuel cells, back then when GM did. If there are still some engineers left who gained experience back then, is unknown.
You resorted to ad hominem attacks and childish name-calling when I stated that China and Chinese investors will own 10% of Jeep, and then you tried to shift the conversation from that of combined total stock ownership from within China to there not being a top Chinese stakeholder with voting rights at Stellantis. You did this because you know very well that it is already easy to prove that well over 10% of ownership is from within China and thus China and Wuhan will profit from Stellantis and from JEEP.
Also, as far as corporate governance is concerned, Stellantis is already doing exactly what China wants it to do. You did all this research on the web as an attempt to disprove my statements to no avail, and so you very well know that it all says the same thing….that Stellantis will focus on China and on electrification. This is exactly what China wants Stellantis to do. So why are you lying to all these readers? Are you Chinese or just a Iiberal sociaIist? For as long as Stellantis is going in the direction that favors China, China does not want to have a top stakeholder because China knows that this would hurt sales since so many around the world know the truth about what China did with the Wuhan virus and that China does not care how much it destroys our planet in order to grow its economy. Only sociaIists and those influenced by the main stream media have a positive view of China. It is less risky for China to profit from Stellantis utilizing numerous investment partners and sources that would not cause raised eyebrows.
So why does it infuriate you so much when I blame China for the virus that has killed almost twice as many Americans as were lost in WWII? Unfortunately the crimes that China is perpetrating against the environment are far worse. China is destroying our planet thanks to China-enablers like you and Beijing Biden. Thanks a lot.
Regarding your statement: “What Stellantis plans to concentrate on … don’t know.” Really? Here are some top results from basic web searches that you most certainly came across:
“Stellantis….is in talks with China’s Chery Automobile and Guangzhou Automobile Group, known as GAC, to create a joint venture.”
“Stellantis remains committed to its current joint venture partners Dongfeng Motor Corporation and Guangzhou Automotive Group,”
“Stellantis….will…keep all options on the table for revitalising its struggling Chinese business, it top executive said.”
“A focal point for the new company is electrification..”
So, to summarize, China wants Stellantis to focus on China and also to build electric/electrified cars. China will profit from both especially electrification since you cannot build a BEV or a PHEV without sending profit to China. Wasn’t it convenient for China that Chile was hit particularly hard by the Wuhan virus?….and so China came to the rescue with meds and vaccines that China was already administering in 2019…and now China has even more control of the world’s top Lithium producer.
Regarding your statement: “fake news parallel universe where you are getting your imaginations from.”
It is common knowledge that the main stream media that you are referencing is all about protecting China and using misinformation to help China, and China knows this. The world’s sociaIists believe that the most direct way to achieve world sociaIism is through China. This is why the main stream media and the WHO are allowing China to get away with murder…such as this fabricated made-in-Wuhan pandemic.
Regarding your opinion of Dongfeng selling its PSA shares, hmmmm. So you’re saying Dongfeng bought all those shares because PSA was heading into financial straits…but then Dongfeng sold many of its shares because PSA was no longer in danger and there was no more risk and the stock was clearly heading up….yeah..ok…you’re entitled to your opinion. As illogical as your opinion is on this, if what you said was true then Dongfeng would sell all its shares and not keep such a significant portion.
FCA to PSA: “How the heII are we going to sell JEEPS in the USA if Chinese dog-eating Dongfeng is one of the top shareholders in Stellantis?”
PSA to FCA: “We’ll talk to China and Dongfeng….it’s easy for China to maintain it’s future level of investment in Stellantis through other investment resources…and we know what China wants…ps…China’s unethical business practices can be quite profitable for individual board members…hint…hint”
This is why we’re having this entire conversation….because if Americans find out just how much of JEEP ownership is within China, then JEEP sales will suffer.
Lets get back to China’s share of Stellantis and JEEP stock ownership.
So you spend all that effort trying to say that UBS Group and UBS Securities LLC are the same when in fact the latter is a Chinese Bank headquartered in Beijing with 49% of ownership in Beijing. I’m sure the CCP has a handsome tax in place if the other 51% wants to wire profits out of China. Again, it is UBS Securities LLC from Beijing that has a very significant stake in Stellantis, not the UBS from Zurich. I know geography is hard for you, but Beijing is not in Switzerland….although Beijing Biden thinks Beijing is a suburb in Delaware.
It is interesting to note just how rapidly China is saturating the world’s investment market. Some examples:
Blackrock owns 3.8% of Stellantis.
In August 2020, BlackRock received approval from the China Securities Regulatory Commission to set up a mutual fund business in the country. This makes BlackRock the first global asset manager to get consent from China to start operations.
Vanguard (Vanguard Group and Vanguard Total International Stock) owns 2.8% of Stellantis.
The stock’s market allocation in China is 11%
China remains key for Vanguard as the nation opens its markets wider.
While New York-based BlackRock has won regulatory approvals for the first wholly owned foreign mutual fund license and a joint venture with a Chinese bank, Vanguard has yet to file an application for its license to manage money for individual investors.
In short, China is invested in numerous global funds and international financial institutions and many of these own Stellantis stock. China is the only country that grew its economy during a world pandemic (one of the many benefits of knowing everything about the virus before it emerges), and there are certain to be many individual Stellantis investors from within cash-rich China. 10% ownership is a very low estimate, and it is likely to be significantly higher. Again, I am not talking about being able to participate in forging the company’s major decisions (not that it makes a difference since Stellantis is already doing exactly that which will benefit China). I am talking about a significant share of the profit from Stellantis going to China, and so far you have offered no proof that it is less than 10% that is certainly a lower bound.
So China finally let some WHO “inspectors” investigate the origins of the Wuhan virus….how very nice of them. The ultimate proof that China lied about the Wuhan virus and that China is responsible for this pandemic will come to be when the world gets hit with a true pandemic…and then we will see what the most populated country on the planet does…..and Xi and the CCP will not be laughing when they scare the world with a video of a guy in a fancy HAZMAT suit and a 10 foot pole delivering takeout to another actor. China and the CCP have heII to pay.
JEEPs are very nice, and I was going to buy a RUBICON, but I decided to go with the DEFENDER to complement my beautiful SPORT. The DEFENDER is much more comfortable than the Gladiator and much safer. A 5700 pound aluminum space frame is awesome to watch when it gets crash-tested. The Gladiator is lighter and a lot less stiff…plus the detachable doors and roof panels may fall off during a crash which is not an ideal situation. My SPORT weighs as much as a Suburban and the DEFENDER is not that far behind. Most importantly, my enemies’ enemy is my friend….and INDIA profits on Land Rover sales, not CHINA. So, JEEP lovers, start making those checks out to Wuhan and to Xi Jinping. My checks are going to those few brave countries standing up to China.
@Ace Spades: there were some claims which I forgot to correct.
»PSA was the larger company and was thus the buyer. FCA was the seller.»
Actually it is a 50:50 merger. And technically it was the opposite of what Ace Spades wrote: The merger was performed by PSA being integrated into Fiat Chrysler N.V. (the “DutchCo”) and then the PSA shares being changed in 1.742 shares of FCA (being renamed to Stellantis just after the the merger was consummated, and retroactively on January 1st, 2021).
This is quoted from the 2020.12.23 document “FAQ about PSA and FCA merger Project for PSA Shareholders”:
»
The terms of the merger were announced on December 18, 2019. As part of the transaction, PSA will be merged with and into FCA so that on the date of completion of the merger, PSA shareholders will receive 1.742 Stellantis shares for each PSA share held, while FCA shareholders will retain their shares in FCA, an entity renamed Stellantis immediately after the merger. As this is a merger of equals, the former shareholders of PSA and those of FCA will respectively own, after completion, approximately 50% of the capital of Stellantis.
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Ace Spades:
»China was always interested in Jeep and tried to buy Jeep from FCA«
China as such, as a country of 1.4 thousand million people does not buy companies.
Actually, when FCA was still searching for merger partners, one chinese company shouted “here!”, but wanted only to buy Jeep, what was rejected by FCA. This company (or its owner) was Geely.
Geely is the one Chinese company which is actively investing in existing foreign automobile companies. Geely owns London Taxi, Volvo cars, and controls Volvo Trucks. Geely bought Lotus and bought 49% of the Malaysian automaker Proton for being given the operating control (“49% operator”). Geely’s owner, Li Shufu, bought 9.69% of Daimler shares for 7.5 thousand million Euros. Li Shufu is pushing (gently) for a closer cooperation between Volvo and Daimler. Some weeks ago, Daimler and Geely announced the common development of a new 4 cylinder petrol engine, to be used both in Geely and in Mercedes cars. The “Smart” mini car was more or less completely sold to Geely.
To repeat: Li Shufu is a private capitalist, and not the government. His companies are all private capitalist companies, not some joint venture with a state owned company.
Back to Stellantis: even if a high number of Chinese individuals buy Stellantis share, they are hundreds or maybe thousands of individuals who own some shares, but without a common management, i.e. they are not a force, and especially not a force directed by the Chinese government. That one would prefer to see the capital of private citizens being invested in Chinese companies instead of foreign ones.
Holy crap….you realize that you just proved my statement that you have spent all this time opposing, so let me repeat it:
“The same people that infected the world with the Wuhan virus in order to allow China to make deals of a lifetime as oil and economies crashed will now own 10% of Jeep”
You say that even if China owns 10%, 15% or maybe even 30% of JEEP, it doesn’t matter because it is the Chinese private sector that is the real owner, not the Chinese government….so we should all feel good about it. (Remember that scene from Austin Powers when Dr. Evil says “RIGHT…”)
Yeah…Chinese private sector…like Huawei???
Let’s be clear about one thing…all those wonderful Chinese people that are just victims of their oppressive government knew exactly what their government was scheming with the Wuhan virus…and they went along with it…and they all got the vaccines over a year ago…and didn’t warn the world…because they’re national sociaIists….too proud of their country. All 1.4 billion of them lied because they wanted to see the world suffer so that China could get the upper hand and profit.
Also, “Ownership of the merged company will be split 50/50 between PSA and FCA shareholders. The former brand’s investors will be allocated a €5.5 billion (£4.7bn) dividend, while the latter firm’s shareholders will receive a reported €3 billion (£2.6bn).” “Although both automakers billed this as a 50/50 merger, PSA is technically taking over FCA in the final deal.” (CNET, Jan 04, 2021)
I’m quite good in statistics….and I’m pretty sure that 5.5 billion is more than 3 billion….perhaps you have a different opinion, Mr. Shorty (are you bigger or smaller than Mr. Chow?)
In your response, can you tell me who were the other infamous national sociaIists in the past century? (Hint….think about 1939 to 1945)
»world’s sixth-largest automaker by sales« ???
I read always of Stellantis being the FOURTH largest automaker by volume, i.e. number of vehicles sold, after Toyota, VW, and Renault-Nissan-Mitsubishi Alliance.
Or is meant sales by value? Or is it just a typo?
BTW, for those with an increased interest, Stellantis has annonced for tomorrow Tuesday (after the start of the Stellantis shares on the New York Stock Exchange) a dgital press conference:
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„Stellantis, A World Leader in Sustainable Mobility“
Vélizy-Villacoublay and London – Carlos Tavares, Chief Executive Officer, Stellantis, will host a digital press conference celebrating the formation of Stellantis to be followed by a media Q&A, Tuesday, January, 19th
9:40 a.m. EST/3:40 p.m. CET – Digital Press Conference and Media Q&A Session.
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Details on the Stellantis web site via the menu > news > press releases.
I smell P/U wars with GM and there 4 plants and this new mega merger but the question is how much is fuel going to cost with the big guy in charge
budlar
After Joe Biden uses the back taxes collected from the Trump family to buy us all electric cars, gasoline will be almost free.
after the big guy pays his back taxes and fines for his under the table kickback from his crackhead son no I mean the smartest guy the big guy knows in the whole wide world plus the crackheads taxes and fines they will give free fuel cards for illegals.
The real question her his not so much how big or how many sales but how much profit they will make. Size means little in todays world and how much you make is the key unless you are Tesla.
The other key is how prepared for the future you are. GM has been riding high stock prices due to the fact they are in pretty good shape for the future and people are willing to buy in. If they deliver then it will only increase.
Garbage merges with garbage.
How do you delegate an important assignment to others while ensuring that it will be completed successfully?
I’ve read so many INSANE comments on here. (I hope no one really thinks that Chinese people recieved Covid shots in 2018!!)
Stellantis is by far the world’s most interesting automaker. PSA has managed to acquire four cash cows: Jeep, RAM, Dodge (world’s only profitable muscle brand that can easily use Alfa platforms), and easy entry into the margin rich US market and will certainly use Chrysler to sell either Peugeot or Opel vehicles.
PSA, Carlos Taveres, was able to get Opel profitable within one year. GM made strides, sold a nearly break even company, but PSA cut all unnecessary costs leading to hundreds of millions in savings,and these practices will be used to clean up FCA.
Stellantis has a great opportunity with Maserati, DS, Alfa and Lancia by sharing technology and maybe partnering up with either Tata or Geely (Volvo). This VW method will trickle down to Dodge. FCA was already in the processof elevatingMaseratito the level of Porsche or even Ferrari & these vehiclescould share dealers with Alfa coveringmultipleprice points.(Stellantis has already announced 4 new modular kits much like VW.)
PSA has done a good job with early EV adoption in a cost efficient manner. Quality is now as good as VW. FCA (Chrysler Cotp let for dead and basically given to FIAT) has been fantastic at achieving market share by milking life out of legacy platforms thus avoiding the R&D waste happening over at GM where the new modular kits will be outdated before adoption. FCA USCW has fantastic handling even though the bones are near 20 yrs old. Because each FCA project required hands on modifications the Pacifica drives like a nimble car instead if a minivan and I hope this bright spot isn’t lost as Stellantis searches for scale.
Jeep, Peugeot, Opel and FIAT give Stellantis tremendous scale and the economies of scale will help the company to grow in developing markets through lower prices and enhanced value.
No way will every brand survive but Carlos Taveres is building a Franco American GM with a design language and price point for every customer.