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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]
So if FCA and PSA are doing a 50/50 split what happening with the parts that Nissan owns in PSA and the large part of Nissan that is owned by PSA not to mention the parts of Mitsu Motors that is owned by PSA.
Huh? Aren’t you thinking about Renault?
Wrong company. FCA isn’t merging with Renault, they’re merging with Groupe PSA (Peugeot/Citroen/Opel/Vauxhall).
Is your response meant for me? I’m aware that FCA is merging with PSA and not Renault. But Chocolatedeath appears to be confused… talking about PSA’s stake in Nissan, etc. Renault has a stake in Nissan, not PSA.
Thanks. I was confused. thanks
Considering the current crisis brought on by Covid-19, you would think that each company would like to hold on to as much cash as possible.
In just a few years, Stellantis will be requesting a government handout in the name of preserving jobs,
This makes me sick
Welcome to growth at all costs corporate planning.
Why hold cash when you can boost your share value instead? The government will always help when you fall.
Win-win.
The French government actually owns a piece of PSA, so they’ll be on the hook. If any part of what is currently FCA in the US gets in financial trouble, it won’t get US government help, but will possibly be forced to sell off part of its US operations, maybe the Chrysler-Dodge nameplates, while keeping Ram-Jeep.
Holding cash just makes you a fat, juicy target for vulture capital companies. Funneling it all back into stock buybacks and acquisitions gets the shareholders wet while making your executive bonuses bigger.
“This makes me sick”
Why you care, it will be French and Italian govts.
“Ask your doctor is Stellantis is right for you. Don’t take Stellantis if you’re pregnant or nursing.”
This statement sums up what many will feel about the new name. A stupid name for a merged automobile corporation. Shows a lack of imagination.
It’s been worse…they used to be owned by Cerberus – a company named after the three-headed dog that guards the gates of Hell to keep the damned from leaving.
https://www.nytimes.com/2009/08/09/business/09cerb.html
Cerberus sounds like an appropriate name for a company that owned Chrysler. Now Stellantis which is a hard pill to swallow.
Just how many French-lead manufacturers of unreliable and undesirable vehicles does the world need?
This merger is gonna be a disaster.
I mean stuff like this is bad enough when fairly free-market nations get involved. But the French and Italians? There are going to be so many stipulations and requirements attached to this mess just to get it to go through there is no way it will lead to anything good.
10 years from now thanks to all the meddling and the inability to close plants, shed jobs, spin off subsidiaries, consolidate manufacturing Stellantis is going to be one bloated company.
Stellantis death watch starts now? :D
Triple Entente anyone?
Let’s see if they can defeat those Bosches.
They should call it FCPSA or PSFCA or alphabetically CFPSA. Or CPSA and shut down FIAT.