After long journey, Fiat Chrysler and PSA to seal merger to become Stellantis

"He has proven to be the kind of person who prefers action to words, so I don't think he will make loud statements or try to over-sell targets," he said. Like all global automakers, Stellantis needs to invest billions in the years ahead to transform its vehicle range for the electric era.

Reuters | Milan | Updated: 16-01-2021 05:31 IST | Created: 16-01-2021 05:31 IST
After long journey, Fiat Chrysler and PSA to seal merger to become Stellantis

Fiat Chrysler and PSA will seal 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.

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 ringing NYSE's bell with Chairman John Elkann. FCA and PSA have said Stellantis can cut annual costs by over 5 billion euros ($6.1 billion) without plant closures, and investors will be keen for more details on how it will do this.

Marco Santino, a partner at consultants Oliver Wyman, said he expected Tavares to disclose the outlines of his action plan soon, but without divulging too many details at first. "He has proven to be the kind of person who prefers action to words, so I don't think he will make loud statements or try to over-sell targets," he said.

Like all global automakers, Stellantis needs to invest billions in the years ahead to transform its vehicle range for the electric era. But other pressing tasks loom, including reviving the group's lagging fortunes in China, rationalising its huge global empire and addressing massive overcapacity.

"It will be a step by step process, also to allow the market better appreciate every single move. I don't think we will have all the details before one year," Santino said. FCA CEO Mike Manley - who will head Stellantis' key North American operations - has said 40% of the carmaker's expected synergies would come from convergence of platforms and powertrains and from optimising R&D investments, 35% from savings on purchases, and another 7% from savings on sales operations and general expenses.

($1 = 0.8226 euros)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

Why unequal access to coronavirus vaccines is a threat to us all

... ...

India’s love affair with fossil fuels: the path to sustainable development?

... ...

Videos

Latest News

Taapsee Pannu reunites with Pavail Gulati for Anurag Kashyap's 'Dobaaraa'

Actors Taapsee Pannu and Pavail Gulati have reunited after last years hit Thappad for filmmaker Anurag Kashyaps upcoming thriller Dobaaraa.On the first anniversary of Thappad, Pannu took to Instagram and made the announcement. The 33-year-o...

Madurai DM holds all party meeting ahead of Assembly polls

Ahead of the scheduled state assembly elections in Tamil Nadu, an all-party meeting was held on Saturday at the residence of the District Collector, T Anbalagan in Madurai. In the meeting held on Saturday, the District Collector held talks ...

Rakesh Tikait to hold Kisan Mahapanchayat in UP's Saharanpur

Amid the ongoing framers protest at Delhi borders against the three Central agricultural laws, Bharatiya Kisan Union BKU leader Rakesh Tikait will hold a Kisan Mahapanchayat at Lakhnaur in Saharanpur district of Uttar Pradesh on Sunday. Acc...

NYC rally condemns attacks on people of Asian descent

A crowd gathered in New York City on Saturday to denounce an uptick in attacks on people of Asian descent in the city and across the country.Hundreds of people rallied at Foley Square in lower Manhattan, not far from where an Asian man was ...

Give Feedback