Automakers FCA and PSA confirm progress towards full merger – Milwaukee, Wisconsin

Milwaukee, Wisconsin 2020-10-28 04:34:08 –

Milan (AP) — On Wednesday Fiat Chrysler and PSA Peugeot confirmed progress towards a complete merger to create the world’s fourth-largest car maker, expected to be completed by the end of March 2021.

The merger between an Italian-American car company and a French rival, agreed last year, aims to create a car maker large enough to meet the challenges of stricter emissions regulations and the transition to new driving technologies. The new company is called Stellantis.

The boards of directors of both companies have signed cross-border agreements that allow Groupe PSA to sell a small stake in French car supplier Faurecia to facilitate regulatory approval, the companies said in a statement. PSA currently holds a 46% stake and plans to dispose of approximately 7%.

Despite the effects of the coronavirus pandemic, the merger completion date coincides with the original time frame. The new company will have an annual production capacity of 8.7 million units, following Volkswagen, Renault-Nissan Alliance and Toyota. PSA CEO Carlos Tavares will lead the group and Fiat Chrysler Chairman John Elkann will serve on the board.

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