01.04.21 - For over a year, Fiat Chrysler and PSA Group (makers of the Peugeot) have been working out the details of a trans-Atlantic tie up which would, when completed, create a global auto-making giant, selling 8.7 million vehicles annually—more than General Motors Co. The two are aiming to complete the merger early this year and plan to call the combined company Stellantis NV. Shareholders in the two companies recently approved the merger of the car manufacturing giants.
At both PSA and Fiat Chrysler, shareholders overwhelmingly supported the deal with more than 99% of the votes cast at each company approving the merger, according to results released Monday. The deal is seen as a critical step needed to move the trans-Atlantic tie-up into its final stages.
Carlos Tavares, the PSA exec tapped to lead the combined companies, stated that the two companies will soon release a date for finalizing the tie-up. France's PSA, whose brands include Peugeot and Citroën, has fared better than rivals during the health crisis, managing to post a profit in the first half of 2020. Fiat Chrysler was hit hard this spring by factory closures and a collapse in vehicle demand, leading it to cut its shareholder dividend in April. But the strength of the U.S. market's rebound over the summer helped it post a surprisingly strong profit in the third quarter.
Fiat Chrysler and PSA executives say the economic challenges created by the pandemic have only further underscored their rationale for the merger, the auto sector's largest since 1998.
Source: Wall Street Journal