FCA-PSA Merger Terms Tweaked

Matt Posky
by Matt Posky

Fiat Chrysler Automobiles and PSA Group announced a few revisions to their planned merger on Monday. Unfortunately, ditching the Stellantis moniker when they become the world’s fourth-largest automaker wasn’t among the changes listed. Because it still sounds like a medication for people with arthritis.

Ask your doctor is Stellantis is right for you. Don’t take Stellantis if you’re pregnant or nursing.

As the duo wants to maintain a 50/50 split, they need to address “the liquidity impact on the automotive industry of the COVID-19 pandemic while preserving the economic value” of their original agreement. That has left PSA maintaining control of French parts supplier Faurecia. A special dividend to be distributed among its shareholders before closing is set at 2.9 billion euros (which was previously listed as €5.5 billion) while PSA’s 46 [percent] stake in Faurecia will be distributed to all Stellantis shareholders following the newly formed board’s approval.

“I cannot commend highly enough the commitment of the teams working towards the launch of Stellantis and of all our people in overcoming the extraordinary challenges COVID-19 has presented,” FCA CEO Mike Manley said the release. “Today’s announcement is a further, strong signal of a common determination to ensure that Stellantis has all the resources it needs to apply its unique assets, its creative energies and many opportunities to the creation of superior value for all our stakeholders.”

“With this new decisive milestone, we are moving all together towards our goal in the best possible condition with even greater prospects for Stellantis,” PSA CEO Carlos Tavares agreed. “I would like to take this opportunity to warmly thank the teams who have built reciprocal relations of trust, including during the COVID-19 confinement.”

Welp, corporate leadership seems to be on the same page in their prepared statements. FCA gets a pile of cash while PSA spins off one of the largest parts suppliers currently in operation. The companies estimated Faurecia’s capitalization around €5.86 billion.

[Image: afapress/Shutterstock]

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • CFS I can’t believe these comments aren’t 100% in favor of CarPlay/Android Auto. They don’t add much for music and other audio that you don’t get with just a Bluetooth connection, but they make navigation so so much better. Why is it better? Because inputting the destination address is so much easier. And I don’t need to think about updating my car’s maps. Plus, I can switch between Google Maps, Waze, Apple Maps, or whatever else seems best suited for my trip. Hands-free calling features are OK, but not such a big deal for me.
  • TheEndlessEnigma I've owned a VW in the past and learned my lesson. Any kind of repair was absurdly expensive which I understand is typical of VW nowadays.
  • TheEndlessEnigma Interesting how Stellantis (and can we take a moment to acknowledge how piss-poor a company name this is - it invokes....what....MBA marketeers failing at their job) is pursuing cuts to reduce costs instead of, oh I don't know, designing-building-marketing vehicles people *WANT* to buy? What has Stella done with what was Chrysler? Suck off the cash flow generated by Chrysler brands, essentially kill the Chrysler brand by cancelling successful models, eliminate any market advantage Dodge had by killing successful models (G Caravan was the #1 minivan until it was killed, Charger & Challenger *were* profitable, etc,) and progressively and continually neuter Jeep all this while ignoring component and build quality. What's done in return? Push Fiat as the new and exciting brand then watch as it fails in North America (did you know ONLY 603 Fiats were sold in the US in 2023). All new Stellantis releases in North America are Euro designs......that then fail in North America because they are not design for our market. The Stellanis solution? Fire Fred, Hank, and Jim and replace them with Apu, Jose and Bernardo. Yup, that will work.
  • 3-On-The-Tree To say your people are total monsters is an unfair statement. You can judge the Japanese government but to say the citizens are culpable or responsible is wrong. That’s like saying every Caucasian person in the U.S is responsible for slavery or the civil rights era of violence and discrimination against African Americans and are benefiting from it. That’s 79 years ago, the average Japanese citizen born during WWII has nothing to do with what happened. Even my Japanese grandmother who was living in Yokohama whose home was firebombed was just trying to survive with 3 kids and a husband fighting in the war. Just like every war the citizens suffer, I saw it in Iraq. You can’t judge the people from the misdeeds of their government, my mom was born after the war, you really think she is responsible for what happened?
  • Irvingklaws Was a must have for my wife's new car. After years of windshield mounts, trying to keep the sun off the phone, wires running across the dash, etc...it's been a welcome upgrade. Don't have it in my current (old) car, just a stock stereo with the aforementioned windshield phone mount and wires...which is fine enough for me. But if I upgrade the radio with an aftermarket unit, the first thing I'm looking for, after separate volume and tuning KNOBS, is Carplay. Note, I've yet to find an aftermarket head unit meeting these basic qualifications. The infotainment in my '17 GTI had both of these and was near perfect, I'd be happy with that unit in any car.
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