European Regulators Finally Approve PSA/FCA Becoming Stellantis

Matt Posky
by Matt Posky
european regulators finally approve psa fca becoming stellantis

Fiat Chrysler and PSA Group are reportedly in the homestretch of their $38 billion merger deal and on the cusp of becoming Stellantis — the planet’s fourth largest automaker by volume. The plan is to join forces to help absorb the monumental cost of developing alternative energy vehicles (like EVs) without losing any brands or shuttering any facilities that weren’t previously marked for death. We’re inclined to believe it when we see it, however, as the duo are also targeting an annual cost reduction of 5 billion euros (about $5.91 billion USD).

It also hasn’t been a smoothest of regulatory rides. After spending years hunting for the perfect partner, FCA and PSA had to adjust the terms of their existing deal to contend with losses incurred as a result of the pandemic response. But it all seems to be fine now and the European Commission has given approval and that’s what matters in finally getting this deal done.

Most of the concerns revolved around anti-trust issues relating to vehicle segments and servicing. While the latter has yet to be comprehensively addressed by either automaker, PSA opted to strengthen its joint venture with Toyota Motor Corp on vans in September. According to Reuters, that was sufficient in addressing regulatory fears that Stellantis would develop an unrivaled small-van market share inside Europe. All other changes were said to be minor in nature.

While none of the involved parties decided to issue any comments, an announcement on the merger approval is expected soon. The automakers have previously said they could have the merger finalized in the first quarter of 2021, with us having little reason to assume that the timeline has changed. The companies are eager to start enacting those massive cost cuts and have estimated about 40 percent of savings will come from product-related expenses with another 40 coming from purchasing. The remaining 20 percent is supposed to be divided among marketing expenses, logistics, and information technology.

[Image: Quinta/Shutterstock]

Join the conversation
3 of 18 comments
  • Thegamper Thegamper on Oct 27, 2020

    Hopefully this means we can export America's current plague to Europe so they can experience the joy of full sized pickups blighting every road and parking lot of their continent as well. You are welcome Europe.

  • Deanst Deanst on Oct 27, 2020

    My fearless prediction is that the firm has peaked. They will never be higher than #4 by volume.

    • 28-Cars-Later 28-Cars-Later on Oct 27, 2020

      Stellantis/Chantix/Cialis/Propecia/Gattex will become the #1 or #2 in USDM sales within 24 months.

  • Golden2husky 78 Concept is pretty awesome to me -
  • Redapple2 Make mine a 110 Defender- diesel.
  • Redapple2 What is the weight of the tractor? What is the range at full load? What is the recharge time? Not a serious product if they are HIDING the answers.
  • Lou_BC "Owners of affected Wrangles" Does a missing "r" cancel an extra stud?
  • Slavuta One can put a secret breaker that will disable the starter or spark plug supply. Even disabling headlights or all lights will bring more trouble to thieves than they wish for. With no brake lights, someone will hit from behind, they will leave fingerprints inside. Or if they steal at night, they will have to drive with no lights. Any of these things definitely will bring attention.I remember people removing rotor from under distributor cup.