French carmaker Peugeot SA (PSA) and Italian-American carmaker Fiat Chrysler (FCA) have announced their decision to merge. The new company, called Stellantis, will be the world’s fourth largest car company.
The merger decision was announced in a joint statement issued by the two companies on Saturday. Stellantis will be led by Peugeout CEO Carlos Tavares.
The company, based in the central Netherlands and includes car brands such as Opel, Peugeot, Citroën, Jeep, Maserati, Alfa Romeo and Dodge, competed with giants such as Volkswagen and Toyota.
Tavares, CEO of Stellantis, which has about 400,000 employees, will make a statement to the press on Tuesday. The company’s shares will be traded on the Milan and Paris stock exchanges on Monday and on the New York stock exchange from Tuesday.
Prior to the coronavirus pandemic, the annual turnover of PSA and FCA exceeded 170 billion euros, and PSA sold 8 million vehicles a year. In 2019, only Volkswagen, Toyota and Renault-Nissan-Mitsubishi partnerships managed to exceed these figures.
Preparations for the merger of the two companies have long been made. The first public statement on the subject was made in October 2019.
Economic developments related to the corona crisis led to a dramatic release and decline in sales in the automotive sector last year. However, Carlos Tavares has made assurances so far that production facilities will not be closed after the merger. Opel is the only German brand in the new company from France and Italy.