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Stellantis mega-merger gets approval from FCA, PSA shareholders

MILAN — Shareholders of Fiat Chrysler and PSA Peugeot decisively voted Monday to merge the U.S.-Italian and French carmakers to create worldÂ’s 4th-largest auto company. Addressing separate meetings, both PSA Peugeot CEO Carlos Tavares and Fiat Chrysler Chairman John Elkann spoke of the “historic” importance of the vote, which combines legacy car companies that helped write the industrial histories of the United States, France and Italy. Before the merger is finalized, shares in the new company, to be called Stellantis, must the launched. It will be traded in Milan, New York and Paris. The marriage of PSA Peugeot and Fiat Chrysler Automobiles is built on the promise of cost-savings in the capital-hungry industry, but what remains to be seen is if it will be able to preserve jobs and heritage brands in a global market still suffering from the pandemic. The deal will create the worldÂ’s fourth-largest carmaker, with the capacity to produce 8.7 million cars a year, behind Volkswagen, Toyota and Renault-Nissan, and create 5 billion euros in annual synergies.  “We are fully aware of the fact that together we will be stronger than individually,'' PSA CEO Carlos Tavares told a virtual gathering of eligible shareholders. “The two companies are in good health. These two companies have strong positions in their markets.” The new company will put together under one roof French mass-market carmakers Peugeot and Citroen, top-selling Jeep and Italian luxury and sports brands Maserati and Alfa Romeo - pooling companies that have helped define the industry in the United States, France and Italy. While the tie-up is billed as a merger of equals, the power advantage goes to PSA, with Tavares running Stellantis and holding the tie-breaking vote on the 11-seat board. Tavares is set to take full control of the company early this year, possibly by the end of January. Fiat Chrysler chairman John Elkann, heir to the Fiat-founding Agnelli family and Fiat ChryslerÂ’s biggest shareholder, will be the Stellantis chairman. Fiat Chrysler CEO Mike Manley will head North American operations, which is key to Tavares' long-time goal of getting a U.S. foothold for the French carmaker he has run since 2014, and the clear money-maker for Fiat Chrysler. Such a deal was long wanted by Fiat ChryslerÂ’s long-time CEO Sergio Marchionne, who had predicted the necessity of consolidation in the industry. He was unable to find a deal before his sudden death in July 2018.

Stellantis will give its brands 10 years to prove they deserve to live

Formed by the merger of PSA Peugeot-Citroen and Fiat-Chrysler Automobiles, Stellantis has 14 brands under its roof, a number that makes it one of the largest groups in the industry. Rumors claimed not every brand would survive, with Chrysler often earmarked to get axed, but the firm said it will give them all a chance to shine. "We're giving each (brand) a chance, giving each a time window of 10 years and giving funding for 10 years to do a core model strategy. The CEOs need to be clear in brand promise, customers, targets, and brand communications," announced Stellantis boss Carlos Tavares during the Financial Times' Future of the Car event. His comments confirm Chrysler fans and dealers don't need to worry about the future — at least not yet. And, against all odds, Lancia enthusiasts can breathe a sigh of relief, too. Former FCA head Sergio Marchionne warned of the brand's demise on several occasions. Alfa Romeo is safe for now, too, as is Vauxhall, which are basically just Opels sold in the United Kingdom with a different badge. The engagement made by Tavares also means Stellantis won't divest any of its brands to raise capital until at least 2031. It's now up to each executive team to make a case for the brand they run, an unusual survival-of-the-fittest strategy in an era when cutting costs is more common than spending cash. Diving into the vast Stellantis parts bin should help even the most troubled brands turn their fortunes around on a relatively tight budget. It seems likely that survive Chrysler will need to look beyond the 300 and the Pacifica/Voyager, the only models in its range, and completely reinvent its image, which is currently nebulous at best. Lancia, once the champion of luxury, performance, and innovation, faces the same challenge. It's not starting quite from scratch, it's relatively popular in its home country of Italy, but it will need to think globally and expand outside of the city car segment to survive. Featured Gallery 2020 Chrysler 300 View 24 Photos Chrysler Dodge Fiat Jeep RAM Citroen Lancia Opel Peugeot Vauxhall

Is America's last cheap minivan worth it?

Take a good look at this beauty. Because once she's gone there may be no turning back. The minivan market has been completely decimated over the past fifteen years. I could list all the former brands (dead and alive) that once formed the lynchpin of parenthood for this inherently conservative market. But that would involve at least fourteen commas, three sets of parentheses, and possibly even one 2000s-style recount. Back then, middle-class America loved these people-movers and even the well-to-do were glad to load them up with unique luxuries such as power sliding doors, captain's chairs, integrated child seats, and DVD players that entombed cacophonous kids into a temporary silence. Back in the '90s, the minivan market regularly realized well over a million sold units a year. In 2000, minivans finally hit their familial peak of 1.4 million vehicles in a year with the help of two top-20 bestsellers: the Dodge Grand Caravan and Chrysler Town & Country. Today the minivan just isn't popular. This year it'll likely represent only a half-million in annual sales, with not a single minivan hitting America's top 30 in overall volume. But as I always tell folks, "If you want a deal, you have to hit 'em where they ain't." So you want a cheap and affordable minivan for cash money that isn't a 15-year-old Plymouth in purple? Does it have to be new? Really? Well, if you're married to that type of person, this Grand Caravan with the American Value Package is the cheapest thing going. Deals can also be had on the mini-minivan Mazda5, but since it's been discontinued due to low demand, let's focus on the still-popular Chrysler minivan. The cost for this 2016 Dodge Grand Caravan according to TrueCar is right around $19,500 depending on where you live in the USA. But let's take a look at the 2015 models instead since they tend to have even stronger discounts during the wintertime thanks to manufacturers and dealers who are busy shoveling out all this older inventory. If you opt for a 2015 model instead, you're looking at a market price right around $17,800 and luckily these minivans are still sitting in multitude. Wanna click those rebate and incentive buttons? If you currently lease or finance a FIAT or Chrysler product, have AAA coverage, and finance the car with FCA, you can make off like the proverbial bandit for a price of only $15,229 before the dealer inflicts their bogus fee money dance.