The increasing popularity of the concept of sustainability has driven the automobile industry to look into cleaner alternatives for fuels like those run by battery-electric cells and hydrogen fuel(also known as the fuel cell electric vehicle). This has been a huge blow to legacy automobile makers. Though they still have higher sales, they will have to diversify into cleaner fuelled vehicles, if they want to have continued demands for their products in the future or at least merge with other players to stay in the game.
That brings us to our story today.
Fiat Chrysler Automobiles and PSA Group, the French Automaker with brands like Peugeot Citroën, has agreed to merge to form the 4th largest automaker. The new company will be called Stellantis and would house a total of 14 brands including Jeep, Maserati, Alfa Romeo, Peugeot, Citroen, among others. Stellantis would have the capacity to build 8.7 million cars and would be only behind Volkswagen, Toyota and Renault-Nissan.
PSA CEO Carlos Tavares will be CEO of the new company, while FCA chairman John Elkann, the heir to the Agnelli family that founded Fiat, will be the Chairman of Stellantis. The company will be based in Netherlands and will have stock listings in Milan, Paris and New York.
The companies had announced their merger in December 2019, but the terms were amended in September 2020 to reflect the changes that the Pandemic brought about in the industry.