The new company that is set to be formed by the merger of Fiat Chrysler Automobiles (FCA) and Peugeot S.A. (Groupe PSA) will be named Stellantis. The two companies officially signed a Combination Agreement last year intending to enter a 50:50 merger to become the world's 4th largest automaker. Both the companies have been working on paperwork and other procedures for the past nine months, and now we finally have the name of the new group. The next step in the process will be the unveiling of a logo that will become the brand's corporate brand identity.
Fiat Chrysler and Groupe PSA's 50:50 merger Stellantis will become the world's 4th largest automaker
The name Stellantis is derived from the Latin verb "stello" which means "to brighten with stars". The company says that "the name draws inspiration from this new and ambitious alignment of the two automotive brands and strong company cultures that in coming together are creating one of the new leaders in the next era of mobility while at the same time preserving all the exceptional value and the values of its constituent parts."
The name's Latin origins pay tribute to the rich history of its founding companies - the Italian-American firm FCA, and the French company Groupe PSA. The company says that process of identifying the new name began soon after the Combination Agreement was announced, and the senior management of both companies have been closely involved in the process. The new company, Stellantis, will use the expertise, talent and know-how of the two auto conglomerates to provide sustainable mobility solutions to their customers in the coming decades.
The merger process of the two companies will officially conclude in the first quarter of the 2021 calendar year subject to customary closing conditions, including approval by both companies' shareholders at their respective Extraordinary General Meetings and the satisfaction of antitrust and other regulatory requirements. Having said that, the EU antitrust regulators, who launched a four-month-long probe in June into Fiat Chrysler and Peugeot maker PSA's proposed merger, have extended their investigation to November 13, 2020. Their concern is that the deal to create the world's fourth-biggest carmaker may hurt competition in small vans in 14 EU countries and Britain.
In India, both brands have been present in their individual capacity. While FCA India has stopped the production of Fiat-branded models, currently its most popular brand in India is the American SUV-maker, Jeep, which locally produces the Compass SUV in India, its best-seller. Additionally, the brand also imports the Wrangler and Grand Cherokee in India. FCA also has its luxury sports car brand Maserati present in India.
Also Read: Groupe PSA To Launch Citroen Brand In India
Groupe PSA, on the other hand, has already introduced the Citroen brand in India, and the company's first product, the C5 Aircross, is expected to launch in the first quarter of 2021. Furthermore, the Citroen is also working on its first Made-in-India, Made-for-India vehicle that's slated to arrive next year in the country.