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A30 world news
Diamars 5 Januari 2021

Fiat Chrysler, Peugeot shareholders approve merger

logistics, supply chain, qual- from UBS bank said he ex-
ity and parts sales, he said. pected “immediate action
to be taken right after clos-
“We feel confident that this ing, for example by bringing
integration can be achieved FCA’s European product on
as both companies have pre- the PSA architectures.”
viously gone through signifi-
cant business combinations," The French and Italian eco-
Manley said. "And by virtue nomic ministers, in a joint
of successful execution, they statement, said the new com-
have both emerged stronger pany will strengthen Eu-
from each of them.” rope's industrial leadership.
Innovation by Stellantis will
Such a deal was long wanted help Europe play a role in
by Fiat Chrysler’s longtime the transition toward green
CEO Sergio Marchionne, vehicles, they said, adding
who had predicted the neces- that “both governments will
sity of consolidation in the also pay attention to Stellan-
industry. He was unable to tis’ contribution to indus-
find a deal before his sudden trial employment in Italy and
death in July 2018. France.”

Tavares comes into the new Analysts point out that gain-
role with a reputation as a ing cost savings is only the
(AP) — Shareholders of ings. possibly by the end of Janu- cost-cutter and skilled man- first of many challenges that
Fiat Chrysler and PSA ary. ager, qualities he put to use the new company will face.
Peugeot voted Monday The marriage of the Italian- as head of Nissan’s North Both PSA and Fiat Chrysler
to merge and create the American and French rivals is Fiat Chrysler CEO Mike American operations from have poor records and in-
world’s fourth-largest built on the promise of cost Manley will head North 2009 to 2011 and in integrat- frastructure in China, and
auto company which, its savings in the capital-hungry American operations, which ing Opel and Vauxhall into both are lagging in electri-
architects hope, can more industry during a technologi- is key to Tavares' long-time the PSA Peugeot family after fied powertrains, requiring
readily take on an enor- cal shift to electrified pow- goal of getting a U.S. foot- buying them in 2017. Experts investments that will off-set
mous technological shift ertrains and autonomous hold for the French carmaker say he is likely to follow a some of the savings.
in the industry. driving. But what remains he has run since 2014, and blueprint that showed little
to be seen is if it will be able the clear money-maker for tolerance for vehicles or ven- PSA has set a goal of having
Addressing separate meet- to preserve jobs and heritage Fiat Chrysler. tures that didn’t make money. all-electric or hybrid pow-
ings, PSA Peugeot CEO Car- brands in a global market still ertrains on its entire model
los Tavares and Fiat Chrysler suffering from the pandemic. Manley said about 40% of the That could put into the cross- range by 2025, while Fiat
Chairman John Elkann spoke savings will come from com- hairs any of the 14 car brands Chrysler has committed to
of the “historic” importance “Together we will be stron- bining platforms, the under- that Stellantis will house, five electrifying 30 of its models
of the merger, which com- ger than individually,'' Tava- pinnings of vehicles, and en- from PSA and nine from Fiat by 2022.
bines car companies that res told a virtual gathering of gines and transmissions. An- Chrysler. The companies also
helped write the industrial shareholders. “The two com- other 35% of the savings will have significant overlaps in Meeting those challenges will
histories of the United States, panies are in good health. come from joint purchas- manufacturing and engineer- take more than restructur-
France and Italy. Tavares will These two companies have ing, especially with electric ing operations in Europe. ing prowess, said Ferdinand
run the new company, while strong positions in their mar- and high tech components, Dudenhoeffer of the Center
Elkann stays on as chairman. kets.” he said, while 7% will come PSA told the AP last week that for Automotive Research in
from sales, general and ad- decisions on brands would be Germany.
The only real hurdle left The new company will put ministrative cost savings. communicated after the deal
to closing the deal is listing together French mass-mar- is closed. Fiat Chrysler said “Carlos Tavares is a restruc-
shares of the new company, ket carmakers Peugeot and The companies will get the there are no plans to close turing guy. He knows how
to be called Stellantis. The Citroen, top-selling Jeep, rest of the savings from opti- any plants. to restructure, but he has no
companies expect it to be fi- and Italian luxury and sports mizing other areas including Analyst Patrick Hummel ideas for a new tack,” he said.
nalized Jan. 16, with shares brands Maserati and Alfa Ro-
in the combined company meo - pooling brands with
trading on Jan. 18 in Milan histories spanning from 75
and Paris and Jan. 19 on the to over 120 years with strong
New York Stock Exchange. emotional pull in their home
Fiat Chrysler shares were up markets.
0.2% in New York on Mon-
day at $18.13, while Peugeot “We are living through a pro-
rose 1.7% to 22.75 euros. found era of change in our
industry,’’ said Elkann, heir
Fiat Chrysler announced to the Fiat-founding Agnelli
Monday that its stockholders family and Fiat Chrysler’s
as of Jan. 15 will get a spe- biggest shareholder. “We be-
cial cash payment worth 1.84 lieve that the coming decade
euros ($2.26) per common will redefine mobility as we
share after the merger closes. know it."
The payments will cost 2.9
billion euros ($3.56 billion). While the tie-up is billed as a
merger of equals, the power
The new company will have advantage goes to PSA, with
the capacity to produce 8.7 Tavares running Stellantis
million cars a year, behind and holding the tie-breaking
Volkswagen, Toyota and Re- vote on the 11-seat board. Ta-
nault-Nissan, and create 5 vares is set to take control of
billion euros in annual sav- the company early this year,