There’s a new name in the automotive world: Stellantis.
And yes, we are well aware of the industry jokes already humming about asking your doctor whether it’s right for you. Stellantis is no drug, however, but rather the product of a massive merger in the automotive world.
Here’s a little more info to fill you in on what it’s all about.
What is Stellantis?
Stellantis is the name of the company resulting from the merger of Fiat Chrysler America (FCA) and Peugeot S.A. (PSA). The $52 billion deal and Stellantis name were announced last year, and the merger became official over the weekend.
As a refresher, Fiat Chrysler America was the parent company of brands such as Jeep, Dodge, Ram, Chrysler, Fiat and Alfa Romeo. That company itself came into existence in the years after Italy’s Fiat rescued Chrysler following its 2009 bankruptcy.
PSA, meanwhile, is a French company responsible for car brands such as Peugeot, which have not been sold in America in decades.
What does Stellantis mean for me?
For the automotive industry, however, it’s a big deal that creates the world’s fourth-largest automaker.
As with other big mergers, the thinking is that combining two global brands can lead to economies of scale, sharing of technology (and in this case, likely powertrains and electrification), and the ability to scale up.
On an investment note, Stellantis made its debut on the New York Stock Exchange today under the symbol STLA.
Other questions are yet to be answered, such as will you again be able to buy a new Peugeot in the United States and whether Stellantis executives will shed some of the company’s brands that are struggling in here, such as Fiat.
But for now at least you know what Stellantis means.