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FCA and PSA sign merger agreement

Confirming an earlier rumor, PSA Group and Fiat-Chrysler Automobiles (FCA) signed a binding merger agreement to create the world's fourth-largest automaker. The partners hope to leverage the benefits of economies of scale as they develop new technologies and expand their global presence. The announcement ends FCA's years-long search for a partner, which nearly ended earlier in 2019 when it came close to merging with Renault, PSA's rival. It brings Fiat, Chrysler, Dodge, Ram, Jeep, Alfa Romeo, Maserati, Lancia, Peugeot, Citroen, DS, and Opel/Vauxhall under the same roof. That's a huge portfolio of brands that often overlap, but executives pledged to keep them all open, as well as all their respective factories as a result of the transaction. They're committed to making this big family of automakers work by building on each one's strengths, whether they're technical or regional. FCA and PSA jointly predicted they'll sell about 8.7 million cars annually around the globe, while posting an ˆ11 billion (about $12.2 million) profit. North America, a strong market for FCA, will provide 43% of its revenues, and 46% will be generated in Europe, where Peugeot's brands are doing better than ever. Together, they plan to achieve ˆ3.7 billion (about $4.1 million) in annual run-rate synergies. They'll notably have the purchasing power to negotiate a better price with suppliers, and they'll merge their research and development efforts where it makes sense to do so. Over two thirds of the group's annual volume will be built on two shared platforms. One will underpin about three million small cars annually, and the other will serve as the foundation for approximately three million compact and mid-sized cars. Details about these architectures haven't been made public yet, but a quick look at both companies' product portfolios reveals the small car will very likely come from Peugeot. Recent additions to its range, like the second-generation 208, are built on a new architecture named Common Modular Platform (CMP) developed with electric powertrains in mind. Meanwhile, Fiat is still making the cheeky 500 on an evolution of the platform found under the second-generation Panda released in 2003. The bigger architecture could come from FCA, however. The group's brands will share engines, transmissions, electric powertrains, infotainment systems, various sensors used to power electronic driving aids, and other components like wiring looms, but each one will retain its own identity.

Fiat Chrysler and Peugeot boards meet to finalize merger

MILAN/PARIS — The boards of Fiat Chrysler Automobiles and Peugeot will meet separately on Tuesday to discuss finalizing an initial agreement for a $50 billion merger to create the world's number four carmaker, sources said. A source close to FCA said the two companies could announce the signing of a binding memorandum early on Wednesday, followed by a conference call to explain further details later in the day. The two mid-sized carmakers announced plans six weeks ago for a tie-up to help them deal with big challenges in the industry, including a global demand downturn and the need to develop costly cleaner cars to meet looming anti-pollution rules. Ahead of the meetings, entities representing the Peugeot family, Etablissements Peugeot Freres (EPF) and FFP, unanimously approved a proposed memorandum of understanding for the planned merger, a source familiar with the situation said. FCA and PSA have said they would seek to finalize a deal by year-end to create a group with 8.7 million in annual vehicle sales. That would put it fourth globally behind Volkswagen, Toyota and the Renault-Nissan alliance. PSA's Carlos Tavares will be chief executive and FCA's John Elkann — the scion of Italy's Agnelli family, which controls FCA through their holding company Exor — chairman of the combined company. The group will include the Fiat, Jeep, Dodge, Ram, Chrysler, Alfa Romeo, Maserati, Peugeot, DS, Opel and Vauxhall brands, allowing it to serve mass and premium passenger car markets as well as those for trucks and light commercial vehicles. Related Video:       Chrysler Dodge Fiat Jeep RAM Citroen Peugeot

Stellantis — seriously? Exploring the pros and cons of Chrysler’s new name

I took Wednesday off. I came in Thursday and Chrysler was renamed Stellantis. Aside from lighting Twitter on fire and drawing a lot of snarky responses from car journalists, the name is actually decent. Let’s look at it from a few angles. For starters, Chrysler, the 95-year-old automaker founded in Detroit by Walter P. Chrysler (his name still adorns everything from a major freeway in Michigan to an iconic art deco skyscraper in New York), isnÂ’t actually Chrysler. ItÂ’s FCA, which stands for Fiat Chrysler Automobiles. The name change actually happened in 2014, which you might have easily missed. The American unit, formerly Chrysler, is known as FCA US in some legal matters, but does not operate independently.   The Stellantis name takes effect in 2021. HereÂ’s why itÂ’s needed: Fiat Chrysler is merging with Group PSA. (Peugeot and Citroen) to form a transatlantic alliance that will be larger than even Ford. Stellantis sounds a lot better than FCA-PSA. Or PSA-FCA. You might poke fun at it, but it beats the alternatives. Or at least it could be worse. Stellantis is the name for the corporate entity that will house Chrysler, Fiat, Peugeot, Citroen, and oh by the way, Opel and Vauxhall, which PSA bought in 2017 when GM unloaded its European arm.  Your Jeep will not say Stellantis on the fender. Your Hemi Hellcat wonÂ’t say “powered by Stellantis” under the hood. Your Fiat 500 or Alfa Romeo Giulia will not have a script “Stellantis" crest. Speaking of that, roll call: HereÂ’s all of the brands that will be housed under the Stellantis umbrella: Chrysler, Dodge, Jeep, Fiat, Fiat Professional, Mopar, Alfa Romeo, Maserati, Abarth, Ram, Lancia, Peugeot, Citroen, DS, Opel and Vauxhall. ThereÂ’s also a couple of lesser-known subsidiaries, Comau and Teksid, that sell parts. ThatÂ’s 18 brands. They have origins in Detroit, Paris, Turin, Chalton (England), Russelsheim (Germany) and several other places. All of these carmakers have deep histories. No one was going to agree on using someone elseÂ’s name. You might notice Chrysler is still in there. Chrysler as the brandname for the 300 sedan and Pacifica minivan lives on. Stellantis replaces FCA, which replaced Chrysler, as the name of the parent company. Yes, it's a little confusing. HereÂ’s more perspective. Chrysler was once owned by Cerberus, a three-headed dog that guards the gates of hell, according to mythology.