Expect Big Changes to FCA; Stellantis is officially official

Photo Credit: AutoCar

The long journey is finally over—one of the world’s largest automotive mergers has happened, creating an even larger automotive group. Shareholders confirmed and signed off on PSA Groupe and Fiat Chrysler Automobiles (FCA) to merge and create the fourth-largest automaker in the world: introducing Stellantis.

Carlos Tavares, the former head of PSA Groupe, was named the first Chief Executive Officer of Stellantis and is expected to bring his watchful eye on sales to the merger. Tavares is known for his aggressive hand in axing vehicles that don’t hold their end of the bargain and will likely carry that attitude over to Stellantis. Stellantis is the merging name of the two companies, and it will manage over 15 brands.

Expected Changes to PSA Groupe, FCA

First on the list of expected changes will likely be the removal of cars not holding their weight. Among early choices that could potentially get the boot is Chrysler’s low car (Chrysler 300) model. The rule will likely extend to other FCA vehicles that have had trouble selling cars, SUVs, or trucks under other company brands. The next step would likely be to solidify and reinforce a variety of vehicle platforms and powertrains on the most popular vehicles in the lineup. Then we may see a crossover of the platforms and the potential of Peugeot in North America. The Italian technology could soon hit North American markets as a result of the merger.

When Will the Changes Come

Shareholders from both companies as well as the European Union (EU) agreed to and confirmed the merger before Christmas of last year. Tavares, who has long wanted to sell PSA vehicles in the United States, did not gain the full strength of the company until late January. He is known for saying any global automaker has to sell in the U.S. market. It will likely take some time before American drivers will get their hands on previously foreign vehicles in the Stellantis lineup. The popular Jeep brand and Ram vehicles will likely remain untouched due to their success in sales. 

Designing 4th Largest Automaker

No task is too big when you choose to work together. In December, the two companies announced that Fiat Chrysler CEO Mike Manley would be the top person for Stellantis’ Americas operations. With that move, Jeep and Dodge faithful will likely continue to see large vehicles remain unique to the United States audience. However, it will be likely that smaller U.S. makers will slowly integrate PSA underpinnings into their future small cars and SUVs due to the merger.

The PSA technology will be a huge factor moving forward in mobilizing FCA vehicles towards meeting global government fuel mileage and pollution requirements, with a broader goal to see most vehicles on an electric platform by 2025. In a statement from Fiat Chrysler, it was said that one of Stellantis’ greatest strengths is its historic brands, including 10 from FCA. There are no plans to close any existing plants as a result of the merger.

Starting off the New Year with a New Car 

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Allow trained service team members to help with an online service appointment to get started on all maintenance work and repairs going forward. At your local Dodge Chrysler Jeep Ram, they’ll know what it takes to provide a worthwhile experience. Start of the year the right way, allowing them to service your vehicle needs.

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