On Saturday, London-based Italian-American carmaker Fiat Chrysler alongside the French Peugeot-maker Groupe PSA would rubberstamp a long-awaited $52 billion merger deal to become Stellantis, the world’s fourth-largest automaker by market valuation, which has been expected to pour heavy-money in R&Ds to smoothen up its shift into self-driving and e-vehicles while taking on larger rivals likes of Japan’s Toyota Motor Co.
alongside the Wolfsburg-based German automaker Volkswagen. If truth is to be told, the London-based Anglo-American automaker FCA and Paris-based Groupe PSA took more than a year to conclude their $52 billion deal, mostly due to a global-scale pandemic outbreak that wreaked havocs over the global economy and led to a sharp downturn in sales of passenger cars across the globe, while the automotive industry giants had first announced their merger plan in the October of 2019 aimed at creating an entity which would have an annual sales figure of a whopping 8.1 million units.
Stellantis shares to begin trading in Milan and Paris on Monday
Besides, spokespersons for Group PSA and FCA were quoted saying late on Friday that shares of Stellantis, the separate entity formed by a PSA-FCA merger what would be headed by current PSA Chief Executive Carlos Tavares, would start off trading in Milan and Paris bourses on Monday and in New York on the following day.
Aside from that, the automakers had also said in a statement earlier this year that Tavares would hold his first press conference as Stellantis Chief Executive on Tuesday following the merged entity’s debut in the New York Stock Exchange.
Meanwhile, as the merged entity has been expected to slash as many as €5 billion in annual spending and to invest billions of euros over the coming years in e-vehicles and autonomous driving technology, referring to a raft of rancour the FCA-PSA merger Chief Tavares would likely to face off following a year of pandemic-battered wears and tears, a partner at consultants Oliver Wyman said late in the day, “He (Tavares) has proven to be the kind of person who prefers action to words, so I don’t think he will make loud statements or try to over-sell targets.
It will be a step by step process, also to allow the market better appreciate every single move. I don’t think we will have all the details before one year. ”