Fiat and Peugeot seal merger to become Stellantis

Fiat and Peugeot seal merger to become Stellantis

Fiat and Peugeot seal merger to become Stellantis

19 minutes ago

Picture used for illustrative purpose only.

Fiat Chrysler and Peugeot SA sealed their long-awaited merger on Saturday to create Stellantis, the world's fourth-largest auto group with deep enough pockets to fund the shift to electric driving and take on bigger rivals Toyota and Volkswagen.

It took over a year for the Italian-American and French automakers to finalise the $52 billion deal, during which the global economy was upended by the COVID-19 pandemic. They first announced plans to merge in October 2019, to create a group with annual sales of around 8.1 million vehicles.

"The merger between Peugeot SA and Fiat Chrysler Automobiles NV that will lead the path to the creation of Stellantis NV became effective today,“ the two automakers said in a statement.

Shares in Stellantis, which will be headed by current PSA Chief Executive Carlos Tavares, will start 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 address the huge challenges facing the group - from excess production capacity to a woeful performance in China.

Tavares will hold his first press conference as Stellantis CEO on Tuesday, after