Beautiful Virgin Islands

Tuesday, Jun 24, 2025

Fiat Chrysler, Peugeot shareholders approve merger

Fiat Chrysler, Peugeot shareholders approve merger

Shareholders of Fiat Chrysler and PSA Peugeot voted Monday to merge and create the world’s fourth-largest auto company which, its architects hope, can more readily take on an enormous technological shift in the industry.
Addressing separate meetings, PSA Peugeot CEO Carlos Tavares and Fiat Chrysler Chairman John Elkann spoke of the “historic” importance of the merger, which combines legacy car companies that helped write the industrial histories of the United States, France and Italy. Tavares will run the new company, while Elkann stays on as chairman.

Before the merger is finalized, shares in the new company, to be called Stellantis, must the launched. It will be traded in Milan, New York and Paris. Fiat Chrysler was trading up 2.5% in Milan at 15.03 euros, while Peugeot rose 3.4% in Paris to 23.13 euros.

The new company will have the capacity to produce 8.7 million cars a year, behind Volkswagen, Toyota and Renault-Nissan, and create 5 billion euros in annual savings. That is higher than the 3.7 billion euros estimated when the deal was announced in December 2019.

The marriage of the Italian-American and French rivals is built on the promise of cost savings in the capital-hungry industry during a technological shift to electrified powertrains and autonomous driving. But what remains to be seen is if it will be able to preserve jobs and heritage brands in a global market still suffering from the pandemic.

“Together we will be stronger than individually,″ Tavares told a virtual gathering of eligible shareholders. “The two companies are in good health. These two companies have strong positions in their markets.”

The new company will put together under one roof French mass-market carmakers Peugeot and Citroen, top-selling Jeep and Italian luxury and sports brands Maserati and Alfa Romeo - pooling brands with histories spanning from 75 to over 120 years with strong emotional pull in their home markets.

“We are living through a profound era of change in our industry,” Elkann, heir to the Fiat-founding Agnelli family and Fiat Chrysler’s biggest shareholder, told shareholders. “We believe that the coming decade will redefine mobility as we know it.”

While the tie-up is billed as a merger of equals, the power advantage goes to PSA, with Tavares running Stellantis and holding the tie-breaking vote on the 11-seat board. Tavares is set to take full control of the company early this year, possibly by the end of January.

Fiat Chrysler CEO Mike Manley will head North American operations, which is key to Tavares’ long-time goal of getting a U.S. foothold for the French carmaker he has run since 2014, and the clear money-maker for Fiat Chrysler.

Manley said about 40% of the savings will come from combining platforms, the underpinnings of vehicles, and engines and transmissions. The combination will optimize “our investments in R&D, and improving manufacturing processes and tooling efficiencies,” he said.

Another 35% of the savings will come from joint purchasing, especially with electric and high tech components, he said, while 7% will come from sales, general and administrative cost savings.

The companies will get the rest of the savings from optimizing other areas including logistics, supply chain, quality and parts sales, he said.

“Clearly the success of the merger will be measured by the ability to effectively integrate the two companies so as to enable the realization of these vast synergies,” Manley said. “We feel confident that this integration can be achieved as both companies have previously gone through significant business combinations. And by virtue of successful execution, they have both emerged stronger from each of them.”

Such a deal was long wanted by Fiat Chrysler’s long-time CEO Sergio Marchionne, who had predicted the necessity of consolidation in the industry. He was unable to find a deal before his sudden death in July 2018.

Tavares comes into the new role with a reputation as a cost-cutter and skilled manager, qualities he put to use as head of Nissan’s North American operations from 2009 to 2011 and in integrating Opel and Vauxhall into the PSA Peugeot family after buying them in 2017. Experts say he is likely to follow a blueprint that showed little tolerance for vehicles or ventures that didn’t make money.

That could put into the crosshairs any of the 14 car brands that Stellantis will house, five from PSA and nine from Fiat Chrysler. The companies also have significant overlaps in manufacturing and engineering operations in Europe.

PSA told the AP last week that decisions on brands would be communicated after the deal is closed. Fiat Chrysler said there are no plans to close any plants.

Analyst Patrick Hummel from UBS bank said he expected “immediate action to be taken right after closing, for example by bringing FCA’s European product on the PSA architectures.”

Still, analysts point out that gaining cost savings is only the first of many that the new company will face. Both PSA and Fiat Chrysler have poor records and infrastructure in China, and both are lagging in electrified powertrains, requiring investments that will off-set some of the savings.

PSA has set a goal of having all-electric or hybrid powertrains on its entire model range by 2025, while Fiat Chrysler has committed to electrifying 30 of its models by 2022.

Meeting those challenges will take more than restructuring prowess, said Ferdinand Dudenhoeffer of the Center for Automotive Research in Germany.

“Carlos Tavares is a restructuring guy. He knows how to restructure, but he has no ideas for a new tack,” he said.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Airlines Evaluate Flight Cancellations Amid Escalating US-Iran Tensions
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
BBC Demands Perplexity AI Immediately Stop Using Its Content
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
Political Turmoil Resurfaces in Belgium Amid Economic Concerns
Fed policymakers divided on timing of interest rate cuts
Trump signals imminent agreement with Harvard University
Inheritance tax referendum alarms Swiss billionaire community
Japan cancels bilateral security meeting amid US defence demands
AI skeptic Emily Bender warns that ‘the emperor has no clothes’
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
×