[volkman10]

The current automotive universe.

After the FCA-PSA merger there are only two groups managing more than 10 brands: VW Group (12) and FCA+PSA (14)



Link

[volkman10]

FCA, PSA merger face longer duration as EU antitrust probe of merger.

EU antitrust regulators were concerned regarding FCA and PSA’s combined high market share in small vans, and were expecting the two carmakers to address these concerns in a matter of days.

It seems that neither brand managed to do so, and now an expedited process might be out of the question,

Link

[Venkatesh]

FCA, Groupe PSA merger has been officially named Stellantis which is formed using the Latin verb stello meaning to brighten with stars.



Stellantis intends to create two new platforms that would underpin over two-thirds of its models.

The new brand will become the world’s fourth-largest automaker and will consist of 13 marques including Jeep and Citroen. The total annual deliveries of the group will be around 87 lakh vehicles globally.

The group will be led by PSA’s CEO, while Fiat Chrysler’s chairman will also act as the chairman of the merged company.

https://www.motorbeam.com/fca-groupe...ed-stellantis/

[fhdowntheline]

This seems to be a first where a merged automotive entity takes on a completely new brand name. So far, its been either the dominant brand taking on the name, or a joint name identity (Renault-Nissan, Daimler-Chrysler, Jaguar-Land Rover, Fiat Chrysler etc).
As an aside, Stellantis sounds more like a Pharma company than an Automotive behemoth.

[SKC-auto]

Exactly Stellantis is like a pharma company name. Other than the name I see most of the brands in this new group are luxury or sports brands, most of the brands in the group exist only in their home markets.

VW has nice mix of brands from mass market, luxury, sports and commercial.

Now the time has come to merge chinese makers to make 4-5 large manufacturers. See the Chinese makers from the first post, may be more than 100 brands.

[CrAzY dRiVeR]

Originally Posted by fhdowntheline

As an aside, Stellantis sounds more like a Pharma company than an Automotive behemoth.

Originally Posted by SKC-auto

Exactly Stellantis is like a pharma company name.

On the other hand - Somehow reminds me names coming up in science fiction movies - maybe due to Aquaman and Atlantis and all.

Horrible name for an automotive brand. Hope the cars won't be named with this brand and they continue with the sub-brands only. Will be shocked to see a Stellantis Wrangler launched instead of Jeep.

[PrasunBannerjee]

Perhaps I'm seeing merger of two already 'merged' groups into one for the first time. FCA is already a group/merger and not a single company, and so is PSA.

[ajmat]

Originally Posted by fhdowntheline

This seems to be a first where a merged automotive entity takes on a completely new brand name. So far, its been either the dominant brand taking on the name, or a joint name identity (Renault-Nissan, Daimler-Chrysler, Jaguar-Land Rover, Fiat Chrysler etc).
As an aside, Stellantis sounds more like a Pharma company than an Automotive behemoth.

Sounds odd but avoids issues like which company comes first in the name (i.e Daimler Chrysler)
It will keep sub-brands independent as the group name would be ignored
It is country agnostic

[GTO]

Originally Posted by fhdowntheline

This seems to be a first where a merged automotive entity takes on a completely new brand name.

I remember reading of how Jurgen Schrempp & Bob Eaton had a lot of debate on whose name will come first - Daimler-Chrysler or Chrysler-Daimler. In the end, Jurgen's ego & aggression won. As Ajmat said, this makes it easy.

Still, quite a stupid name. I think it's only there for symbolic reasons and won't be used on any car anywhere.

Originally Posted by PrasunBannerjee

Perhaps I'm seeing merger of two already 'merged' groups into one for the first time.

This is also the most illogical merger I've seen. You can't bring together two struggling groups and expect to create a winner. It is the equivalent of merging VW-Skoda & Renault-Nissan in India, or VAG & Tata in India.

[MaserQ]

One possible upside to this merger is that it could be seen as a union of equals without a dominant partner. Whether that is a positive or negative, only time will tell.

It's going to take a force of nature in the mold of Carlos Ghosn to make this marriage work. Failing which, they could be in couples therapy in no time.

[vrprabhu]

Originally Posted by GTO

This is also the most illogical merger I've seen. You can't bring together two struggling groups and expect to create a winner

A possible reason could be to create a larger entity (through this merger) making it difficult for any other poacher (i.e. Chinese auto companies) to take over the two groups who were struggling individually?

One scenario could be that the combined entity will have a significant presence in EU, US and Latin American countries - so they are looking to form a conglomerate to handle the various brands?

PS - Peugeot reminds me of a bike (moped, actually) which was introduced in late 80s by them (?) which was called 'Sportif'. It was very futuristic looking (in those days) and came with alloy wheels and electric starter, which were unheard of. I think it finds a mention in some thread in the bike section....

[qr20de]

From 2021, everyone who owns a FCA or PSA branded vehicle is pretty much going to be driving around a medical condition. For all the marketing and sales professionals in both these companies and consultants, they came up with that?

I really want a merger between Suzuki and Toyota, so that they can call themselves Arthritis.

[volkman10]

Here is the official release:

[ajmat]

Originally Posted by GTO

This is also the most illogical merger I've seen. You can't bring together two struggling groups and expect to create a winner. It is the equivalent of merging VW-Skoda & Renault-Nissan in India, or VAG & Tata in India.

The is really a bet on Carlos Tavares, he has shown results in turning around Peugeot and made GM Europe turn a profit within a year

Originally Posted by MaserQ

It's going to take a force of nature in the mold of Carlos Ghosn to make this marriage work. Failing which, they could be in couples therapy in no time.

Look no further, Tavares is Carlos Ghosn's protege, he left since Ghosn would not retire or handover some parts of the Rebel Alliance

[Batfreak]

Originally Posted by GTO

This is also the most illogical merger I've seen. You can't bring together two struggling groups and expect to create a winner. It is the equivalent of merging VW-Skoda & Renault-Nissan in India, or VAG & Tata in India.

I would humbly beg to differ. What seem to be "struggling" automotive groups from the Indian perspective are definitely not so if we look at the international space. As has already been mentioned, combined, they will be the fourth largest automotive conglomerate in terms of vehicles manufactured and the third largest in terms of revenue.

There are also several other advantages that come to mind when I look at this merger:

1. PSA has a very strong presence in the EU, where FCA struggles. On the other hand, FCA shifts nearly a million vehicles each year in the USA, a market where PSA is far behind. The idea is to create a synergy - capitalize on the experience, reach and facilites of both the individual groups in the different markets.
2. The updated EU emission norms that are due to kick in next year, which require the emitted CO2 levels to drop to just 95g/km (for the entire fleet) are a massive hurdle. Most carmakers are not in a state to meet this requirement and would then be liable to pay a hefty fine for every vehicle that they sell. To put it in perspective, the expected fine on FCA alone is expected to exceed a billion euros each year. The norms are also very difficult technologically and are almost impossible to meet just through conventional ICE vehicles. The only solution is quick hybridisation of the line-ups but that needs a massive developmental effort. Both groups have been working on developing their own electric powertrains so far and sharing of technologies and development effort would help push the cost down.
3. Further, EVs need absolutely new platforms that are ready for electrification as well as hybridisation. Joint development of these platforms is on the cards, to push down cost. EVs also need new manufacturing facilites for most components (look up the new battery plant and the new assembly line set up by FCA in Turin for the new 500e). Having a large conglomerate helps the economies of scale and pushes down the cost.

Now more than ever, these companies need to save costs. Remember that they are mass-market manufacturers for the large part with slim margins. And now, they are facing a slump in demand at the same time when they are being expected to invest heavily on clean technology and deliver competitively priced XEVs, or cough up exorbitant fines. I see this as a fight for survival and I expect more companies to go this way.