Merger Creates New Auto Giant Stellantis

Stellantis, the car company combining PSA Peugeot and Fiat Chrysler, was launched Monday on the Milan and Paris stock exchanges, giving life to the fourth-largest auto company in the world. Shareholders in both companies voted in favor of the merger earlier this month, and it became official on Saturday. Stellantis shares rallied 7.6% in Milan to 13.53 euros ($16.32). CEO Carlos Tavares said during a virtual bell-ringing ceremony that the merger creates 25 billion euros in shareholder value, the AP reports. "The focus from Day One will be on value creation from synergies, which will increase competitiveness vis-a-vis its peers," Tavares said.

Stellantis has a new logo and will launch on the New York Stock Exchange on Tuesday, due to the Monday US bank holiday, followed by a press conference with Tavares. Chairman John Elkann, heir to the Fiat-founding Agnelli family, said that the new company has "the scale, the resources, the diversity and the knowledge to successfully capture the opportunities of this new era in transportation." The technological shift includes electrified powertrains as well as moves toward greater autonomous driving. The merger is aimed at creating 5 billion euros in annual savings. The new company will have the capacity to produce 8.7 million cars a year, behind Volkswagen, Toyota, and Renault-Nissan.

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