Understand how the multi-million dollar merger between Peugeot and Fiat will lead to Stellantis | economy

Adding up the sales of the 14 brands that make up the new company, 8.7 million units were sold worldwide in 2018. The figure is lower than that registered by Toyota, with 10.5 million, Volkswagen, with 10.6 million. and the Renault-Nissan-Mitsubishi alliance, with 10.7 million.

In 2019, PSA and FCA together sold 7.9 million vehicles, behind Toyota (10.7) and Volkswagen (10.9). The Franco-Japanese group has yet to release the 2019 results due to differences from the Japanese fiscal year.

One of the proposals of the merger is the economy based on cooperation between brands, such as access to platforms and technologies, with a focus on electrification and autonomous driving, in addition to strengthening in markets in which some of its brands do not have a great turnout.

According to the CEO of FCA, Mike Manley, 40% of the more than 5 billion euros in synergies will come from the convergence of platforms, engines and transmissions, in addition to optimizing investments in research and development.

When negotiations were announced in 2019, the new company had a goal of not closing any factories. Currently, the brands have more than 400 thousand employees and a net turnover of more than 180 billion euros.

Forecasting changes in some plans due to the impact caused by the coronavirus pandemic in 2020, the G1 asked FCA and PSA about the commitment to keep the factories, as well as requesting updates on savings, investment and employee numbers, and expects a return.

See more details about Stellantis:

• A FCA would have access to the most modern PSA vehicle platforms, helping you meet stringent new emission standards;
• Concentration on electrification, autonomous driving and connectivity;
• All segments will be considered, from luxury cars, to SUVs, trucks and light commercials;
• Still no prediction of when the first model will be presented fusion;
• The focus will be on two platforms: small and compact / medium;
• There will be 14 brands in total: FCA’s Fiat, Chrysler, Maserati, Jeep, Abarth, Alfa Romeo, Lancia, Dodge and Ram, as well as PSA’s Peugeot, Citroën, Opel, Vauxhall and DS;
• Total of 5 billion euros in savings annual;
• The total cost to achieve these savings is estimated at 4,000 million euros;
• Fusion will have 50/50 ratio;
• The parent company of the group will be based in the Netherlands;
• Factory closures are not considered;
• The current executive director of Peugeot, Carlos Tavares, will be the general director and member of the board for an initial period of 5 years;
• The current president of the FCA, John Elkann, will be the president of the new group.

The merger forms the largest group in Brazil

While the Stellantis group is the fourth largest in global proportion, in Brazil it holds the market leadership considering the accumulated numbers from January to November 2020, with 2,406,917 cars and light commercial vehicles. The data is from the distributors association, Fenabrave.

Adding up all the brands belonging to the FCA, such as Fiat and Jeep, as well as Citroën and Peugeot, the only two PSA brands in operation in the Brazilian market, more than 400 thousand vehicles.

Fiat alone sold 282,000 units, while Jeep sold 95,000. Citroën registered 12,600 vehicles, while Peugeot had 11,500.

Just behind, Volkswagen, added to Audi (owned by the Volkswagen Group), had 299 thousand cars sold in 2020. Chevrolet follows, with 296 thousand units. The fourth is the world leader Renault-Nissan-Mitsubishi with 187 thousand registered vehicles.

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