Merger News

FCA and PSA Group approve merger to become world's 4th-largest automaker

The boards of FCA and PSA Group have approved a merger between the two companies.

Photo courtesy of Fiat Chrysler Automobiles N.V.

Earlier this year, Fiat Chrysler Automobiles N.V. nearly merged with Renault. Now, the boards of FCA and PSA Group have agreed to join forces using a 50-50 share swap.

Combined, the company will be worth $50 billion and be located in the Netherlands, where FCA currently has its head office. It will have stock listings in Paris, Milan, and New York. The combined company will maintain a significant presence in their current operating head-office locations in France, Italy and the US.

The new company's board will consist of 11 members. PSA's Carlos Tavares will be the company's CEO and a member of the board while FCA's John Elkann will be chairman of the board.

A joint statement from the companies cited a, "rapidly changing environment, with new challenges in connected, electrified, shared and autonomous mobility," as the reason for the merger and expressed how that, "the combined entity would leverage its strong global R&D footprint and ecosystem to foster innovation and meet these challenges with speed and capital efficiency."

Last year, the company had combined sales of 8.4 million vehicles. PSA Group does not currently have a footprint in the U.S. though they have expressed wanting to do so over the past few years, even going so far as to establish an office in Atlanta, Georgia. Much of PSA Group's sales strength is in Europe while FCA is strongest in North and South America.

The company will be able to utilize manufacturing strategies that will have $4.124 billion in estimated annual run-rate synergies. The automakers say this will come from a shared allocation of resources for large-scale investments in vehicle platforms, powertrains, technology, and purchasing capability. Eighty percent of these synergy are expected to be acheived after four years at a one-time cost of $3.118 billion.

No plants will be closed.

FCA brings the Fiat, Dodge, Ram, Chrysler, Jeep, Alfa Romeo, and Maserati vehicle brands to the table. PSA Group owns Peugeot, Citro├źn, DS, Opel, and Vauxhall. Both companies have a number of investments in third-party mobility and technology companies.

There is currently no public proposal of a forthcoming name change as the automakers form the joint company.

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New SUV

New Jeep Compass Coming Soon

The Compass gets a major update for 2022.

Stellantis/Jeep

The Chicago Auto Show is happening now, which means we've already seen a few new models and concepts. Just yesterday, Jeep introduced the new 2022 Compass compact SUV. It gets a new design inside and out, updated tech, and a load of new available driver aids. The Compass' refresh comes as new models from Ford, Subaru and others could cut into Jeep's off-road dominance.

As it was in previous model years, the new Compass is powered by a 2.4-liter "Tigershark" four-cylinder engine that makes 177 horsepower and 172 pound-feet of torque. It's good for up to 31 mpg on the highway in 2WD models and can deliver a max towing capacity of up to 2,000 pounds in 4WD models. A six-speed automatic transmission is standard for Compass Sport and Latitude 4X2 models, while all others get a nine-speed automatic transmission that can handle the 20:1 crawl ratio setting in the Trailhawk model.

An all-new Latitude LUX trim joins the Compass lineup for 2022 as well. It features leather upholstery, heated front seats, a leather-wrapped heated steering wheel, an eight-way power driver seat, a seven-inch full-color gauge cluster, and the larger 10.1-inch screen.


2022 Jeep Compass The new Compass is more upscale than its predecessor.Stellantis/Jeep


The Compass comes with a class-leading 8.4-inch infotainment touchscreen, but higher trims get an even larger 10.1-inch unit. It offers standard wireless Apple CarPlay and Android Auto, and runs Uconnect 5, a colorful, responsive infotainment system with advanced features and tech.

Several new safety features make an appearance, but most are added-cost options. The highway assist system offers a semi-autonomous driving feature, which Jeep says will become available later. Other tech includes traffic sign recognition, standard pedestrian/cyclist automatic emergency braking, a surround-view camera system, parallel and perpendicular parking assist, and a long list of more traditional advanced driver aids like blind spot monitoring and parking sensors.

The Compass lineup for 2022 includes five trims: Sport, Latitude, Latitude LUX, Limited, and Trailhawk. Pricing for the new Compass starts at $26,490, including a $1,495 destination charge. At the top of the lineup, the Trailhawk and Limited models both start at $32,890. It's expected to start arriving on dealers' lots in fall 2021.


2022 Jeep Compass New color schemes highlight the Compass' interior.Stellantis/Jeep

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Jeep Freedom models get special appearance-related upgrades.

Stellantis

The Fourth of July is almost here, and for many of us that means relaxing with family and friends over hot dogs, drinks, and fireworks. For Jeep, the holiday is another opportunity to tout its all-American roots. The brand just picked up an award for America's "Most Patriotic Brand," which is based on a survey of 6,000 Americans to choose the 50 companies that best represent America's patriotic spirit.

No huge surprises here. This year marks the 19th consecutive year that Jeep has been recognized as America's most patriotic brand. The automaker 's vehicles are synonymous with American cars for some people, and since 1941 the company has been making SUVs and off-road vehicles here.


2022 Jeep Wagoneer Flags adorn the side of the upcoming Wagoneer and Grand WagoneerStellantis


To celebrate the occasion, Jeep is offering special-edition Freedom models of each of its vehicles for the 2021 model year. The Freedom models have military-themed design features, matte black or Satin Carbon wheels, and an American flag decal on the side. The vehicles' hoods will be emblazoned with a large "Oscar Mike" (military term for "on the move") star on the hood as well. Wrangler and Gladiator models add an extra Oscar Mike star on the rear tailgate. As part of the rollout, Jeep will donate $250 to the USO for every 2021 Freedom model sold. Active and recently retired service members may also qualify for a $500 cash bonus.

Even after the Freedom models have come and gone, Jeep will retain flag-emblazoned models in its lineup. The 2022 Grand Wagoneer and the 2021 Grand Cherokee L both have American flag badging on their sides. Jeep says it will show off the new Grand Wagoneer on the outside of its tower in Auburn Hills, Michigan.


2021 Jeep Grand Cherokee L The new three-row Grand Cherokee also has flag badging.Stellantis

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