Merger

Shareholders approve FCA-Groupe PSA merger; here's what's next

A new Stellantis company logo was revealed last year ahead of Groupe PSA-Fiat Chrysler merger.

Photo courtesy of FCA US LLC

The shareholders of Fiat Chrysler Automobiles N.V. (FCA) and Peugeot S.A. (Groupe PSA) have approved a merger of the two companies to create Stellantis N.V. (Stellantis). More than 99 percent of the votes cast were in favor of the transaction.

As part of the merger vote, shareholders of FCA also approved the adoption of the Stellantis' Articles of Association and appointment of the previously announced members of the Board of Directors of Stellantis.

Jeep Compass 4xe (European model) The Jeep Compass 4xe is available in overseas markets where PSA Groupe already sells cars. Photo courtesy of FCA

The Board of Directors was announced in October 2020 and includes various members of 11 members. FCA and its reference shareholder Exor nominated five members and Groupe PSA and two of its reference shareholders (EPF/FFP and BPIfrance). nominated five members.

The non-executive directors include Andrea Agnelli (board member of Fiat and Exor), Fiona Clare Cicconi (Google's new head of people operations), Nicolas Dufourcq (general manager of BPIfrance), Ann Frances Godbehere (Non-Executive Independent Director of Royal Dutch Shell Plc), Wan Ling Martello (former Executive Vice President of Nestle, also sits on Uber's board of directors), Jacques de Saint-Exupéry (longtime union insider in France) and Kevin Scott (Microsoft's chief technology officer).

John Elkann will serve as Chairman and Robert Peugeot will be Vice Chairman. Current FCA CEO Mike Manley will not serve on the board. He will instead head up the company's efforts in the Americas.

All appointments are effective on the date of the merger's completion.

What's next for Stellantis

The final regulatory clearances for the company were completed over the course of the last month, including those from the European Commission and the European Central Bank. With those in hand, the merger is expected to be completed on January 16, 2021.

Stellantis' common shares will begin trading on the Euronext in Paris and on Mercato Telematico Azionario in Milan on Monday, January 18, 2021, and on the New York Stock Exchange on Tuesday, January 19, 2021.

There is no official word on when vehicles by Groupe PSA's brands will make their way to U.S. markets. It's more likely that ahead of any brand emergence, there will be Groupe PSA vehicle components that make their way into traditionally FCA products. This includes electrification technology, which FCA's U.S. brands have only just started tapping into.

Trending News

 
 

The commercial van is going all-electric in 2023

Stellantis

Many automakers have publicly committed to making the shift to fully electrified vehicle lineups with the decade, but until recently, Stellantis was an outlier. The global auto giant, whose brands include Jeep, Ram, Dodge, Chrysler, Alfa Romeo, and more, will follow suit, but has been less aggressive with its stated goals. However, the automaker is already making good on its promises, and one of the first vehicles to come will be an electrified version of the Ram ProMaster van in 2023.


Ram ProMaster The electric ProMaster will compete with the Ford E-Transit.Stellantis


The automaker will follow its ProMaster commercial van with an electric version of the Ram 1500 pickup truck in 2024. When the truck eventually lands, it will face off against the Ford F-150 Lightning, Chevrolet Silverado EV, and GMC Hummer EV – a massively crowded field of vehicles, considering none are on sale today.


Ram ProMaster EVs make tons of sense for fleets, where fuel expenses can be steep.Stellantis


We don't have any specs on the new van yet, but its main competition will come from the Ford E-Transit electric van, which just began testing in fleets this week. Ford sent 10 pre-production vans to municipal and other fleets across the UK and a couple of other European countries. The E-Transit is estimated to deliver a range of about 126 miles and to offer a payload capacity of up to 4,290 pounds.


Ram ProMaster The ProMaster is just one of several electrified vehicles that Stellantis will release in the coming years.Ram


Trending News

 
 

Biden will target 50 percent of all vehicle sales for EVs by 2030.

Ford

In the last several months, we've seen automakers from all corners of the globe commit to some degree of electrification by the end of the decade and beyond. That includes the American Big Three: Ford Motor Company, General Motors, and Stellantis (Chrysler, Dodge, Jeep, others). Today, President Joe Biden plans to throw his weight behind these efforts by signing an executive order that sets a goal of pushing the sales of zero-emissions vehicles to half of all vehicle sales in the U.S. by 2030.

Biden's target is not legally binding, but the industry is already jumping on board. In a joint statement, Ford, General Motors, and Stellantis confirmed that they aim to hit an EV sales volume of 40-50 percent annually. It's worth noting that the President's 50 percent goal and the automakers' sales targets also include plug-in hybrid vehicles, which still use a traditional gasoline engine.


Jeep PHEV The target also includes plug-in hybrid vehicles, which still use gas engines.Jeep


Auto unions and dealers are not opposed to the ambitious roadmaps laid out by the Big Three, but both have differing views on what is essential and how things will ultimately play out. While aware of the goals, the UAW is focused on wage growth and the preservation of jobs and benefits. It feels that an increase in EV production volume must happen here in the U.S. to include good-paying American union jobs.

Dealers, to a degree, are supportive of the goals but skeptical of their ultimate success. Some feel that electric vehicles do not present the earth-shattering shift in functionality and usability that other new products, such as smartphones, did in different industries. Regardless of concerns and skepticism, it appears that automakers are going all-in on the shift to electrification, so we're bound to see a wealth of new battery-electric and plug-in hybrid vehicles in the next few years.


GM battery facility rendering Automakers are pledging billions to increase EV and PHEV production volume.GM

Trending News