Company acquisitions just make one corner of an industry more powerful. It seems obvious, right? Even with all those rules against monopolistic behaviors, the market continues to foster empires. One of the latest merges is the newest version of Stellantis, an automaker that has recently become the fourth-largest in the world.
Who is Stellantis?
Stellantis is the newly formed parent company of Fiat Chrysler Automobiles (FCA) and Peugeot-Citroen owner Groupe PSA. The FCA-PSA merger has been in talks for years, but recent developments have made the parent company an official entity.
While Stellantis was officially announced in October 2019, the brand name didn’t become public knowledge until July 2020 (and the logo came even later in November of the same year). In January 2021, shareholders for the two corporations approved the merger and all that goes along with it.
For a rundown, here are the 14 vehicle brands that will operate under the Stellantis umbrella:
- Alfa Romeo
- DS Automobiles
Carlos Tavares, formerly of PSA, will serve as the company’s CEO. Reportedly, Stellantis will keep a keen eye on electrification, hoping to jumpstart the new wave intercontinentally.
The Stellantis deal was worth billions
The entire grille of the Grand Wagoneer Concept is constructed from a solid piece of glass, allowing the design team to place the “jewelry” of the vehicle behind it, like teak-trimmed headlamps and laser-etched grille rings that help define the vehicle’s persona. pic.twitter.com/V18gbghrPz
— Stellantis North America (@Stellantis_NA) January 26, 2021
All in all, the Stellantis merger deal with FCA and PSA went through for a whopping $52 billion. The corporation expects to put out eight billion vehicles annually. This would invoke a yearly revenue of more than $200 billion. At this rate, they’ll position themselves in fourth place when it comes to the largest vehicle manufacturers in the world. Stellantis still trails behind Toyota, Volkswagen Group and Renault-Nissan in terms of production.
Will any car brands dissolve under Stellantis?
Currently, Stellantis spokespeople say they don’t plan on eliminating any brands under the sweeping umbrella. However, things can change quickly in the auto industry, so I wouldn’t take that as scripture. This is especially true as the COVID-19 pandemic continues (despite the early days of vaccination).
My thoughts on the merger
#Stellantis, from the latin verb "stello" meaning "to brighten with stars", ✨ draws inspiration from its alignment of storied #automotive brands and strong corporate cultures to create one of the global leaders in #mobility pic.twitter.com/y7yjyXb0pX
— Stellantis (@Stellantis) January 29, 2021
From my perspective, the interesting thing about the Stellantis merger is not just the eruption of a new and powerful entity. Rather, it’s the combination of two forces who operate across the pond from one another. If this merger means us Americans will have greater access to European vehicle innovation, I am not complaining. With Europe’s regulations far ahead of the US in terms of headlight technology and environmental stringency (among other factors), we may just see speedier updates on our roadways yet.
Stellantis stock has already made its market debut on three different exchanges: the New York Stock Exchange, Paris’ Euronext and Milan’s Mercato Telematico Azionario. This will help to include retail investors across geographic markets.
Stellantis merged from the FCA and PSA existing tickers and saw as much as a 12% surge in just a day. Investor interest has gone back to typical levels since then, however.