It has been one full year since Fiat Chrysler Automobiles (FCA) and Groupe PSA (PSA) merged to create the fourth-largest global automaker known as Stellantis. The new Stellantis identity no longer considers itself as an “automaker” as it does a “mobility tech company” and believes to be at the forefront of a “new era of mobility opportunities, offering innovative, agile, and efficient solutions that will change the way the world moves”.
Carlos Tavares, PSA (left) and Mike Manley, FCA. (Stellantis).
“Our industry is entering an exciting new era, fueled by our customers’ ever-increasing digital lifestyles,” said Carlos Tavares, CEO of Stellantis. “It is no coincidence that Stellantis was born precisely when our world requires a new kind of spirit, one that supports this human imperative by providing clean, connected, affordable and safe freedom of mobility for all. I’m grateful to every Stellantis employee for their daily contributions to building our common community and achieving greatness as we pave the way for a bright future.”
Stellantis signage in front of the Chrysler Tech. Center building on Jan. 19th, 2021. (Stellantis).
With diversity being one of the characteristics of defining the new company, there have been a lot of high points and low points at the newly merged organization.
Tavares started out his reign as CEO of Stellantis under fire, for enforcing “penny-pinching” agendas that he was known for at PSA, into the existing FCA facilities. Tavares, who helped PSA recover from hardship made international news when decided to reduce the number of toilets available to workers, cut cleaning shifts, temperatures, and reorganize transport facilities at a number of FCA Italian facilities against the wishes of the Italian union. All of this while under the increased guidelines for cleanliness during the pandemic.
Installation of the new Stellantis sign at the Detroit Assembly Complex – Mack facility. (Stellantis).
While both FCA and PSA were in good financial standings before the merger, Tavares has expressed his concept on saving not to just impress investors, but Stellantis’ need to justify the cost of an extremely expensive switch to electrified vehicles (EVs) due to ongoing government restrictions across the globe. “What has been decided is to impose on the automotive industry electrification that brings 50% additional costs against a conventional vehicle,” Tavares told Reuters in December 2021. “There is no way we can transfer 50% of additional costs to the final consumer because most parts of the middle class will not be able to pay.”
WTAP Manager Andy Ragalyi (left) and Head of North America Manufacturing Mike Resha & Carlos Tavares (center) during a tour. (Stellantis).
Tavares has sounded a lot like former FCA CEO, Sergio Marchionne on his stance against a complete switch to EVs by most recently stating, “What is clear is that electrification is a technology chosen by politicians, not by industry,” in an interview with European media outlets, Les Echos, Handelsblatt, Corriere della Sera, and El Mundo.
Another problem that Stellantis has been faced with is the continuous semiconductor shortage that has plagued not only the automotive industry but the entire electronics segment.
The company also managed to roll out several mid-cycle actions (MCA) updates on current products to help keep the current portfolio of fresh vehicles.
Stellantis also unveiled an electrification strategy that showed off 33 electrified vehicles that are available now, which includes fuel-cell commercial vans and 8 battery-electric vehicles (BEVs) coming in the next 18 months. The company also announced important partnerships with several companies such as Automotive Cells Company, Factorial Energy, LG Energy Solution, Samsung SDI, and Vulcan Energy to help supply the much-needed batteries for its upcoming range of BEV, plug-in hybrid (PHEV), and mild-hybrid (mHEV) electric vehicles.
2022 Jeep® Grand Cherokee Trailhawk. (Jeep).
Stellantis also is accelerating its software technology offerings thanks to collaborations with Amazon, BMW, Foxconn, and Waymo. These technologies will not just be used for infotainment, but safety as well as autonomous features for future products as well.
The company has also tried to strengthen its global financial operations in the United States with the acquisition of First Investor Financial Series and new partnerships across Europe. Those are partnerships in Europe include BNP Paribas Personal Finance, Crédit Agricole Consumer Finance, and Santander Consumer Financial.
2022 DS 9 E-TENSE 250 RIVOLI +. (DS Automobiles).
“We still have a lot of work ahead of us, but the Stellantis community is well on its way and so the race is on,” said Tavares. “Stellantis will make the difference in the demanding environment in which we operate. It is our duty, and thanks to our competitive mindset, I am confident that our stars will continue to shine.”
Stellantis plans to announce its long-term strategic plan for the future on Tuesday, March 1st, 2022.
Stellantis Timeline –
Wednesday, December 18th, 2019 – FCA & Groupe PSA Sign A 50/50 Merger Agreement
Wednesday, July 15th, 2020 – FCA & PSA Reveal The Name Of The Future Company As “Stellantis”
Monday, September 14th, 2020 – Both Companies Sign An Amendment To The Merger Agreement, Taking Into Account The Economic Impact Due To The COVID-19 Pandemic
Wednesday, September 29th, 2020 – FCA & PSA Announced The Composition Of The Stellantis Board Membership
Monday, November 9th, 2020 – The New Stellantis Logo Is Unveiled
Monday, January 4th, 2021 – General Meetings of FCA and PSA Shareholders Approved The Merger Of The Companies
Saturday, January 16th, 2021 – Merger Of FCA & PSA Is Completed
Sunday, January 17th, 2021 – The New Combined Company Is Officially Named Stellantis N.V. (Stellantis)
Monday, January 18th, 2021 – Stellantis Opening Bell Ceremonies On Euronext In Paris, France, and Borsa Italiana In Milan, Italy
Tuesday, January 19th, 2021 – Stellantis Opening Bell Ceremony On The New York Stock Exchange
What have you thought of the Stellantis merger so far in its first year? Was it a good idea? Or a bad one? Let us know in the MoparInsiders.com forums or in the comments below.
Robert S. Miller is a diehard Mopar enthusiast who lives and breathes all that is Mopar. The Michigander is not only the Editor for MoparInsiders.com, 5thGenRams.com, and HDRams.com but an automotive photographer. He is an avid fan of offshore powerboat racing, which he travels the country to take part in.
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