Some Americans may still call it Chrysler. The car company is now part of a Dutch-based conglomerate called Stellatis NV (STLA). Fiat Chrysler Automobiles (“FCA”) officially merged with PSA Group, owner of the Peugeot brand, on January 16, 2021. This merger makes Stellattis the world’s fourth-largest car manufacturer, with 15 car brands under one roof.
The merger plan was announced in 2019, but it was postponed due to the COVID-19 pandemic. At the time of the merger, Fiat Chrysler’s auto brands included Chrysler, Dodge, Fiat, Fiat Pro, Jeep, Ram, Alfa Romeo, Abbas, Lancia and Maserati. The PSA Group’s brands include Citroen, DS, Opel, Peugeot and Vauxhall. It is currently uncertain which of these brands will survive the merger.
- The Chrysler brand is part of Fiat Chrysler, which merged with the parent company of the Peugeot brand in 2021 to create a new company called Stellattis.
- Fiat Chrysler’s brands include Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Ram, Alfa Romeo, Abbas, Lancia and Maserati.
- The merger has been completed and some changes to the lineup are expected.
Chrysler’s long road
The Chrysler Company was founded in Detroit in 1925 by Walter P. Chrysler, and it was a long and difficult road. Until the late 1970s, the company was the third-ranked company among the three major U.S. automakers, when it was on the verge of bankruptcy and needed an impressive $1.5 billion in bailout funds from the government at the time.
The company regained its footing, but in 2009 fell into bankruptcy again during the financial crisis of 2008-2009. Chrysler received another government bailout, this time in the form of a loan provided by the US government, which was repaid in 2011. Subsequently, Fiat purchased Chrysler shares held by the US Treasury Department. Chrysler and Fiat established a partnership and became Fiat Chrysler Automobiles (FCA).
The merger of Fiat Chrysler and PSA Group gives Stellattis the ownership of many subsidiaries that have long-term business relationships with Fiat or Chrysler. Comau, Teksid, Mopar and Maserati are now subsidiaries of Stellatis.
Comau focuses on manufacturing production systems. The company has three main divisions: body assembly, powertrain and robotics. In addition to the automotive work done for FCA, Comau also cooperates with aerospace and alternative energy companies. It is expanding its robotics system to all areas of manufacturing, including food and beverages, electronics, consumer goods, and logistics.
Teksid SpA was established in 1917 and was originally a foundry that manufactured engine blocks for Fiat. Today, Teksid produces iron and aluminum automotive parts for the FCA division and other automotive companies around the world. Its advantages are the engine block, cylinder head, gearbox and suspension components.
Mopar is an original equipment manufacturer and component supplier for Chrysler, Dodge, Jeep and Ram automobile production lines. The company has a full range of repair parts and a catalog of high-performance parts. It is also a US distributor of Fiat parts.
Mopar is often used as a term to describe any car designed and manufactured by Chrysler or its divisions since 1920.
General Motors, Ford and Chrysler are the original “big three” American automakers.
Maserati SpA is a well-known Italian manufacturer of exotic sports cars and cars, and its financial situation is unstable. Fiat has been the owner since 1989 and has been in full control since 1993. Fiat has established partnerships with Ferrari and Alfa Romeo to develop Maserati into a seller of ultra-luxury high-performance cars.
Is FCA now called Stellattis?
Yes. Fiat Chrysler Automobiles (FCA) completed its merger with Peugeot SA (“PSA Group”) on January 16, 2021. The merger of the two companies led to the establishment of the Dutch-based conglomerate Stellattis. Stellantis is traded on the New York Stock Exchange (NYSE) under the ticker symbol “STLA”.
What is the size of the merger between FCA and PSA Group?
The combined company is expected to become the world’s third largest automaker with annual sales of 8.7 million vehicles. The merger resulted in the establishment of a new company, Stellattis, which, in terms of production volume, will become the world’s fourth largest original equipment manufacturer (OEM). When the merger was announced in 2019, the estimated annual net income of the combined company was 170 billion euros.
Why did Fiat Chrysler merge with PSA Group?
It is expected that this merger will form a diversified company with high profit margins and an estimated annual synergy of approximately 3.7 billion euros. Management predicts that the merger of the two companies will create a portfolio of iconic car brands covering a wide range of market segments that will be attractive to car buyers. They also pointed out that the company will be able to use the combined resources to develop new technologies for autonomous driving and new energy vehicles.