FCA-PSA to merge into Stellantis
16 July 2020
16 July 2020
PSA Group and Fiat Chrysler Automobiles (FCA) have revealed their post-merger name will be Stellantis. The new name is derived from the Latin verb ′stello’, meaning ′to brighten with stars.’
The name will be used exclusively at the group level as a corporate brand. The next step will be for the companies to reveal the associated logo. Meanwhile, the names and logos of the sub-brands will remain unchanged after the merger’s expected completion in the first quarter of 2021.
PSA and FCA began their search for a new name soon after the 50/50 merger agreement was announced in December 2019. Senior management from both companies were closely involved throughout, supported by French advertising and public-relations company, Publicis Group.
In a statement, the companies said the name will ′combine the scale of a truly global business with an exceptional breadth and depth of talent, know-how and resource capable of providing the sustainable mobility solutions for the coming decades.’
′The name’s Latin origins pay tribute to the rich history of its founding companies while the evocation of astronomy captures the true spirit of optimism, energy and renewal driving this industry-changing merger.’
The new group is expected to be the world’s fourth-largest vehicle manufacturer, with annual unit sales of approximately eight million vehicles worldwide. The deal has been subject to antitrust scrutiny and last month the European Commission opened an in-depth investigation into the planned transaction. It became concerned that the move may reduce competition for light commercial vehicles (LCVs) in the European Economic Area and, more specifically, in 14 EU member states and the UK.
According to the Commission, either PSA or FCA is the LCV market leader in many European countries. This means the merger would remove one of the main competitors to the dominant company. A decision will be reached by 13 November 2020, after the deadline was recently extended in agreement with all parties.
Emerging from lockdown
The new name’s announcement came as PSA revealed its sales figures for June. The manufacturing group saw a strong recovery last month, as sales doubled and deliveries were up 71% compared with May.
Peugeot performed well in Spain and Portugal and also improved its market share in France (up 0.2 percentage points), Italy (+0.3 pp) and Austria (+0.2 pp). CitroÃ«n increased its market share in Italy (+0.2 pp), Spain (+0.2 pp) and Germany (+0.1 pp). The brand continues its offensive with a focus on online sales and major launches in the second half of 2020, including the renewal of the C3.
DS Automobiles’ performance was supported by new electric models, which made up 33% of its sales. The brand’s market share increased by 0.4 pp in Europe and reached a record in France, at 11.5%. Opel/Vauxhall’s sales of its new line-up like the Grandland X and the new Corsa reportedly showed a solid development, despite challenging market conditions in the first half of 2020.
As the group remains focused on its CO2 performance, it has confirmed it expects to meet the European standards by the end of 2020. All new models now come with either an all-electric or a plug-in hybrid powertrain. This strategy is in line with the PSA’s roadmap to offer a 100% electrified range from 2025, of which 50% will be electrified by the end of 2021.
′Our teams are on a recovery mode in this critical period, fully committed to spur profitable sales, driven by highly qualitative and competitive models,’ said Carlos Tavares, chairman of the PSA Group managing board. ′In parallel, our monthly CO2 committee ensures that we respect our ethical commitment towards European CO2 targets.’
′We also continue to put our ability to serve client expectations with multi-energy products and very innovative new offers like the CitroÃ«n Ami. Acting this way, we more than ever feed our ambition to provide clean, safe and affordable mobility solutions to our customers,’ he added.