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MILAN, Jan 16 (Reuters) – Fiat Chrysler and PSA unveiled the long-awaited merger on Saturday to form Stellantis, the world’s fourth-largest automotive company with pockets deep enough to move them to drive. To fund electricity and to take over Toyota and Volkswagen ‘s bigger competitors. .
It took more than a year for the Italian-American and French manufacturers to complete the $ 52 billion deal, when the global economy was hit by the COVID-19 pandemic. They first announced plans to merge in October 2019, to form a group with annual sales of about 8.1 million vehicles.
“The merger between Peugeot SA and Fiat Chrysler Automobiles NV that will pave the way for the creation of Stellantis NV came to fruition today,” the two manufacturers said in a statement.
Shares in Stellantis, which will be headed by PSA CEO Carlos Tavares, will begin trading in Milan and Paris on Monday, and in New York on Tuesday.
Now analysts and investors are turning their focus to how Tavares plans to tackle the major challenges facing the group – from overcapacity to poor performance in China.
Tavares will hold its first press conference as Stellantis CEO Tuesday, after ringing the NYSE bell with Chairman John Elkann.
The FCA and PSA have stated that Stellantis can cut annual costs by more than 5 billion euros ($ 6.1 billion) without plant closures, and investors will be willing to learn more about how to do this.
Marco Santino, a partner of councilors Oliver Wyman, said he expected Tavares to reveal the minutes of its action plan soon, but without revealing too much detail at first.
“He’s proven to be the kind of person who prefers action to words, so I don’t think he’ll make loud statements or try to sell targets,” he said.
Like all global manufacturers, Stellantis needs to invest billions in the coming years to transform its range of vehicles for the electric era.
But other urgent actions are underway, including reviving the group’s fortunes in China, rationalizing its vast global empire and tackling overcapacity.
“It will be a step-by-step process, also to allow the market to get better value on every move. I don’t think we’ll have all the details before one year, ”said Santino.
FCA CEO Mike Manley – who will lead Stellantis’ main work in North America – has said that 40% of the expected synergies would come from platform and powertrains assembly and from full production. use of R&D investments, 35% from savings on purchases, and a further 7% from savings on sales and general costs.
$ 1 = 0.8226 euro Edited by Mark Potter, Kirsten Donovan