FCA and PSA Merger Now Named Stellantis
It’s been some time since we received any news about the FCA and PSA merger since it became official. During the initial outbreak of the Coronavirus when automakers were shutting down manufacturing plants and seeing profits plummet, the merger seemed to pause for FCA and PSA, unsure of where to go with it. The creation of the world’s fourth-largest automaker was suddenly on rocky ground, but this month, the two finally put a name to the 50/50 merger. It would be silly to combine the two: FCA-PSA, just a jumble of letters that say nothing. So instead, the new automobile group is called “Stellantis”.
What’s in a Name?
Names are important. Expecting parents flip through pages and pages of baby name books, looking up meanings and origins online, or have a tradition to uphold and name their child after a family member. How does one go about renaming a merger? The new moniker has to mean something and strengthen the two companies joining together. Stellantis, as all great words, has its roots in the dead language of Latin, and means “to brighten with stars.” During the announcement of the new name, Stellantis continued to play up the name and its meaning.
“The name’s Latin origins pay tribute to the rich history of its founding companies while the evocation of astronomy captures the true spirit of optimism, energy, and renewal driving this industry-changing merger.” – Stellantis
What does this mean for some of our favorite vehicles? We don’t need to worry just yet. We won’t be seeing a Stellantis Wrangler or Stellantis Challenger any time soon. The name “Stellantis” will only be used on a corporate level and most likely some acronym for the stock market. Even so, the merger isn’t 100-complete until the first quarter of 2021. The major change we will be seeing will be a sharing of technologies between the two companies to help Peugeot return the United States using FCA as its foundation by 2026 and FCA’s voyage into hybrid and electric vehicles with Peugeot known as one of the current leaders in electric car development.
EU Commission and Competition
Just one snag…the European Commission thinks the merger will create too much competition in the European market, possibly putting Stellantis at an advantage. Wow, are they serious? That’s high school level drama, “OMG Stellantis is just, like SO popular, it’s not fair.” That’s what I’m hearing when reading about the EU investigating the merger because it thinks the deal to create the world’s fourth-biggest automaker could hurt competition in small vans in 14 EU countries and the UK. Oh, boo-freaking-hoo! That’s what business is all about – competition.
What does this mean? It means the EU Commission is trying to find a reason to shut down the merger to save its prized cattle, I mean automakers. With the Coronavirus pandemic, both automakers have taken a hit, and the EU Commission is just looking to throw some salt on the wounds. Why not some freshly-squeezed lemonade while they’re at it?
Sounds a lot like jealousy. Last year, FCA and PSA had a combined turnover of 170 billion euros. The two automobile groups also employ over 400,000 people – that’s a lot of jobs for people who need it, especially now. Combined, the two also sell about nine million vehicles a year. The numbers may take a hit with the crisis of 2020, but this merger could be exactly what the two groups need. Keep up with news on the merger, now Stellantis, on Aventura CJDR social media.