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Fiat Chrysler, PSA to emerge as Stellantis following merger next year

Fiat Chrysler

The combined company resulting from the merger of Italian-American carmaker Fiat Chrysler Automobiles (FCHA.MI) and France’s Peugeot owner PSA (PEUP.PA) will be called Stellantis, the automakers said on Wednesday.

Stellantis is derived from the Latin verb “stello”, which means “to brighten with stars,” the companies said.According to the Stellantis announcement, senior management from both companies were involved in coming up with the name. The French advertising and public relations firm Publicis Groupe also consulted on the decision.

The next step will be to create a logo for the business. The names and the logos of the group’s constituent brands will remain unchanged after the deal’s projected close in the first quarter of 2021.

In December, Fiat Chrysler and PSA agreed to combine in a $50 billion all-share deal to create the world’s fourth-biggest carmaker, and unite brands such as Fiat, Jeep, Dodge, Ram and Maserati with the likes of Peugeot, Opel and DS.

The company selected current PSA Chief Executive Officer Carlos Tavares as Stellantis’ CEO first five years.

The new automaker is expected to be the world’s fourth-largest automaker with annual deliveries of around 8.7 million vehicles. It consists of 13 marques, including notable names like Peugeot, Citroën, Dodge, Jeep, and Ram.

Stellantis intends to create two platforms that would underpin over two-thirds of its brands’ models. Sharing technology so extensively would help save money through economies of scale.

Fiat Chrysler (FCA) and PSA have confirmed that they were sticking to the merger plan signed last year after a newspaper said the carmakers were looking at spinning off assets to cut a planned 5.5 billion euro ($6.2 billion) cash payout to FCA shareholders.

A spokesman for FCA dismissed the report on possible changes to the dividend in Italian business daily Il Sole 24 Ore, while PSA said it remained “lucid in the face of the regular speculations to which this merger project is subject”. It added it was implementing the binding agreement signed by the two companies in December.

“The structure and terms of the merger are agreed and remain unchanged,” the FCA spokesman said.

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