Shareholders of both Fiat Chrysler Automobiles and Group PSA, the French maker of Peugeot and Citroën cars, approved a $58 billion merger that will turn them into the world’s fourth-biggest car producer.
The newly combined enterprise will be called Stellantis. The merger will reportedly generate billions of dollars in annual savings and boost the development of electric and autonomous vehicles, which are projected to drastically change the auto industry in the near future.
Fiat Chrysler manufactures such well-known cars as Chrysler, Dodge, Jeep, Fiat, Alfa Romeo, Maserati and Lancia. Meanwhile, PSA produces Peugeot, Citroën, DS, Opel and Vauxhall auto brands.
After completing the merger, the new corporation will be worth an estimated $58 billion, putting Stellantis to the fourth spot in the rating of the world’s biggest automakers. Combined sales of both companies reportedly reached eight million vehicles in 2019 against 11 million autos sold by Volkswagen.
While both automakers used to compete in the European market, PSA Group is hardly presented in the US, where Fiat Chrysler is number four in terms of sales across the country.
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The major vehicle producers have faced plenty of challenges over the past decade. Carmakers have struggled to compete with the rapidly growing Chinese auto market. Moreover, global car sales sharply declined in 2020 dragged down by the coronavirus pandemic.
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