It’s official. Fiat Chrysler Automobiles (FCA) is dead! Yesterday, FCA and Peugeot S.A. (Groupe PSA) finalized their merger to become Stellantis, the fourth-largest automaker in the world by volume. It marks the fourth time in 23 years, that former Chrysler Corporation has switched hands under a merger or sale.
In 1998, Chrysler Corporation and then Daimler-Benz formed the ill-fated “merger of equals” with DaimlerChrysler. Daimler then sold 80.1% of Chrysler to the American private equity firm Cerberus Captial Management in May 2007, as the economic collapse set in from 2007 to 2009. On April 30, 2009, the automaker filed for Chapter 11 bankruptcy protection to be able to operate as the company renegotiated its debt structure and other obligations. Ultimately, the company defaulted on over $4 billion in secured debts.
On June 10th, 2009, all of Chrysler’s assets were sold to the re-organized Chrysler Group LLC under the leadership of FIAT Group CEO Sergio Marchionne. After Marchionne, restructured Chrysler Group LLC management, he put in place the “World Class Manufacturing” (WCM) system of manufacturing quality, Marchionne’s team revamped and launched 11 new models in 21 months, using improved quality and materials. The new team immediately realigned the Dodge and its pickup division (now known as the Ram brand), to more focus on the separate marketing of both brand’s vehicle portfolio.
On January 21st, 2014, FIAT bought the remaining shares of Chrysler then owned the Voluntary Employees’ Beneficiary Association (VEBA) worth about $3.65 billion. Several days later, FIAT announced that it was to rename its new organization Fiat Chrysler Automobiles.
Under its new identity, Stellantis consists of 14 brands that include Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS, FIAT, Jeep®, Lancia, Maserati, Opel, Peugeot, RAM, and Vauxhall. The new company headquarters will be based in Amsterdam, Netherlands. According to our sources, most of the current operations of the former FCA entity will remain intact.
Stellantis’ common shares will begin trading on Euronext in Paris and on the Mercato Telematico Azionario in Milan on Monday, January 18th, 2021, and on the New York Stock Exchange on Tuesday, January 19th, 2021, in each case under the ticker symbol “STLA.”