Peugeot shareholders say yes to merger with Fiat Chrysler

For the past few years, Fiat Chrysler Automobiles has been trying to get married. After General Motors and Volkswagen made progress, a merger with the French Renault seemed possible until Sergio Marchionne, boss of the FCA, passed away in 2018. In October came the news that FCA had found a new French friend – Peugeot SA. On Monday, Peugeot’s shareholders voted to approve the merger.

The new company, called Stellantis, is headquartered in Amsterdam, the Netherlands, with its shares listed on stock exchanges in Milan, New York and Paris. The combination of its 14 brands will make Stellantis the fourth largest carmaker in the world and Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Lancia, Maserati and Ram (FCA’s brands) together with Citroen, DS, Opel, Peugeot, and Vauxhall (PSA’s trademarks) under one roof.

As mergers take place, this one seems pretty sensible. Jeep and Ram were the two real success stories of FCA, meaning the company had to rely on North American sales. PSA, on the other hand, has no real presence in North America, but has strong sales in Europe, as well as more modern vehicle architectures and a more advanced electrification program.

It is possible that some of the 14 brands may go down the road. Chrysler are just two models, the pretty good Pacifica minibus and the rather antidiluvian 300C. It’s even worse at Lancia, which now only makes a single vehicle, a small hatchback called the Ypsilon. However, FCA has stated that it does not intend to close any plants.

PSA’s current boss, Carlos Tavares, becomes Stellantis’s chief executive, with FCA chairman John Elkann taking over as Stellantis’s chairman.