Stellantis is officially here as Groupe PSA and FCA complete merger

The merger of Italian-American Fiat Chrysler Automobiles NV (FCA) and French automobile group PSA led to the creation of the fourth largest auto company in the world this weekend, MTI writes.

In what was revealed to be a $50bn (£40bn), under the new name Stellantis its common shares will begin trading on Euronext in Paris and the Mercato Telematico Azionario in Milan on Monday, January 18.

On Wall Street, Stellantis executives Carlos Tavares and John Elkann will launch stock trading on Tuesday and will also hold a press conference on plans for the new vehicle group.

FCA chief executive officer Mike Manley - who will head Stellantis' key North American operations - has said that some 40 per cent of the carmaker's expected synergies would come from convergence of platforms and powertrains and from optimising R&D investments, about 35 per cent from savings on purchases, and 7 per cent from savings on sales operations and general expenses.

Stellantis is set to be among the world's top four biggest automotive groups in terms of volume, together with the Volkswagen Group, Toyota, and Renault Nissan Mitsubishi Alliance. Totals for 2020 haven't been announced but are likely to be lower than 2019's total due to Covid-19 coronavirus restrictions.

Tavares has said the merger would add 25 billion euros (approximately $30 billion) in value for shareholders in the coming years.

FCA and PSA have said that Stellantis can cut annual costs by over 5 billion euros (S$8 billion) without plant closures, and investors will be keen for more details on how it will do this.