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Carlos Tavares will head up Stellantis |
The merger between PSA and FCA to create ‘Stellantis’ has been approved by PSA’s major shareholders at a special shareholder meeting today.
The merger deal was rubber stamped by 99% of the votes cast by PSA investors with double voting rights. FCA shareholders are also expected to approve the deal later today.
The new automaker group will be called Stellantis and will bring familiar brands such as Peugeot, Citroen, Fiat, Dodge, Jeep, Opel, Alfa Romeo and Maserati under the same leadership. The merger will reduce costs for both groups thanks to platform and component sharing, and joint R&D expenditure.
The EU had competition concerns centred on the two companies’ dominant position in the European light commercial vehicle market, but approved the merger in December. Peugeot agreed to extend an existing cooperation deal with Toyota that should keep the van market open, while repair and maintenance services need to be accessible to competitors after the merger goes through.
When it is completed early in 2021, the merger will create the 3rd largest global car company by revenues and 4th largest by volume. However, analysts say there is a lot of work ahead to unlock synergies, rationalise operations and create value in the bigger corporation.
See also: EU approves FCA/PSA merger for Stellantis