The auto company that some Americans may still refer to as Chrysler is now part of a conglomerate called Stellantis NV (STLA) based in the Netherlands. Fiat Chrysler Automobiles ("FCA") officially merged with PSA Group, owner of the Peugeot automobile brand, on Jan. 16, 2021. The combination makes Stellantis the world's fourth-largest automobile maker by volume, with 15 vehicle brands under one roof.
Plans for the merger were announced in 2019 but were delayed due to the COVID-19 pandemic. At the time of the merger, Fiat Chrysler vehicle brands included Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Ram, Alfa Romeo, Abarth, Lancia, and Maserati. PSA Group brands included Citroen, DS, Opel, Peugeot, and Vauxhall. It is not yet certain which of these brands will survive the merger.
- The Chrysler brand is part of Fiat Chrysler, which merged with the parent company of the Peugeot brand in 2021 to create a new company called Stellantis.
- Brands under the Fiat Chrysler umbrella include Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Ram, Alfa Romeo, Abarth, Lancia, and Maserati.
- Some changes to the lineup can be expected now that the merger is finalized.
Chrysler's Long Road
It has been a long hard road for Chrysler, the company created in 1925 in Detroit by Walter P. Chrysler. The company mostly thrived as the third-ranked of the Big Three U.S. automakers until the late 1970s, when it came close to bankruptcy and required a government bailout for the then-impressive sum of $1.5 billion.
The company regained its footing but again entered bankruptcy in 2009, in the midst of the financial crisis of 2008-2009. Chrysler received another government bailout, this time in the form of a loan from the U.S. government, which it repaid in 2011. Fiat then purchased the U.S. Treasury's shares of Chrysler. Chrysler entered into a partnership with Fiat, becoming Fiat Chrysler Automobiles (FCA).
The merger of Fiat Chrysler and the PSA Group hands Stellantis ownership of a number of subsidiaries with a long history of doing business with Fiat or Chrysler. Comau, Teksid, Mopar, and Maserati are subsidiaries now under the Stellantis umbrella.
Comau specializes in manufacturing production systems. The company has three main divisions: body assembly, powertrain systems, and robotics. Besides automotive work done for FCA, Comau works with aerospace and alternative energy companies. It is expanding its robotic technology systems into all areas of manufacturing, including food and beverage, electronics, consumer goods, and logistics.
Teksid S.p.A. started in 1917 as a foundry for making engine blocks for Fiat. Today, Teksid makes automotive components from iron and aluminum for FCA units and other automobile companies worldwide. Its strength is in engine blocks, cylinder heads, transmissions, and suspension assemblies.
Mopar is the original equipment manufacturer and supplier of parts for the Chrysler, Dodge, Jeep, and Ram vehicle lines. The company has a full line of parts for repairs, plus a catalog of high-performance parts. It is also the U.S. distributor for Fiat parts.
Mopar is frequently used as a term to describe any car designed and manufactured by Chrysler or its divisions since 1920.
Maserati S.p.A. is a well-known Italian maker of exotic sports cars and sedans with a shaky financial history. Fiat has been an owner since 1989 and had full control since 1993. Fiat has used partnerships with Ferrari and Alfa Romeo to evolve Maserati into a seller of super-luxury high-performance sedans.
Is FCA Now Called Stellantis?
Yes. Fiat Chrysler Automobiles (FCA) completed its merger with Peugeot S.A. ("Groupe PSA") on Jan. 16, 2021. The merger of the two companies resulted in the formation of Stellantis, a conglomerate based in the Netherlands. Stellantis trades on the New York Stock Exchange (NYSE) under the ticker symbol "STLA."
How Big Was the FCA Merger with the PSA Group?
The merger was predicted to create a company that would be the world's third-largest automobile manufacturer by revenue with annual sales of 8.7 million units. The merger resulted in the formation of a new company, Stellantis, which will be the fourth largest global original equipment manufacturer (OEM) by volume. At the time of the merger announcement in 2019, the estimated annual net revenue of the combined companies was 170 billion euros.
Why Did Fiat Chrysler Merge with the PSA Group?
The merger was expected to result in a diversified company with high margins and approximately 3.7 billion euros in estimated annual synergies. Management predicted the combination of the two companies would create a portfolio of iconic car brands covering a wide range of market segments that would be attractive to car buyers. They also pointed out that the company would be able to use its combined resources to develop new technologies in autonomous driving and new energy vehicles.