PSA and Fiat Chrysler create the 3rd most efficient automotive group in the world
The marriage between the automotive groups PSA and Fiat Chrysler (FCA) was sealed on Monday, January 4, after shareholders of both parties validated the merger. This union will make it possible to cope with changes in the sector.
After the Fiat Chrysler (FCA) and Renault merger could not occur, the Italian-American group turned to a competitor, still French, to gain a better foothold in Europe and gain ground in Africa, particularly in North Africa, where French cars are the most sold.
Monday morning, the French PSA shareholders were the first to vote for this merger and were followed in the afternoon by shareholders of the Italian-American alliance to create the Stellantis group.
With this new merger, the marriage of PSA and Fiat Chrysler (FCA), the automotive sector has its 4th group in the genre in terms of several cars sold and 3rd in turnover the Japanese Toyota and the German Volkswagen.
This union is explained by an evolving context of the automotive market where it is more interesting to create an alliance than to see its market shares decline over time. It will also reduce the costs of developing and building cars and developing cars with the same technologies.
For experts, this merger between the groups is seen as a survival question in a rapidly changing automobile market, particularly with technological changes (self-driving cars, electric cars) and fuel consumption.
The effective date of the union must be announced “very quickly,” according to the chairman of the management board of PSA and future CEO of the new Stellantis group, Carlos Tavares.
“I have rarely had the feeling as much as today to live a moment of history”, declared the emblematic chairman of the supervisory board of PSA, Louis Gallois.
“We will play a leading role over the next decade in redefining mobility as our founding fathers did with great energy,” said FCA President John Elkann, referring to a “historic merger”.