Shareholders from Groupe PSA and Fiat Chrysler Automobiles (FCA) have voted in favour of a merger to form OEM super group Stellantis.
Both businesses agreed to a 50:50 merger and will bring together their capabilities in the technologies shaping the new era of sustainable mobility, including electrified powertrain, autonomous driving and digital connectivity.
The new entity expects to sell more than 8.7 million vehicles each year, making it the fourth largest car maker in the world.
Annual cost savings of £3.2bn are expected as a result of the deal, with no planned plant closures.
The Board will be composed of 11 members: Five Board members nominated by FCA (including John Elkann as chairman) and five nominated by Groupe PSA (including the senior independent director and the vice chairman). The chief executive officer is Carlos Tavares for an initial term of five years and he is also a member of the Board.
In November 2019, an AM 'News Insight' feature investigated the potential implications of the merger between PSA and FCA.
Discussion of the subject led to suggestions that FCA Group representation among the AM100’s top retail groups could grow as a period of franchise consolidation follows the manufacturer’s planned merger with PSA Group.