This Monday, January 4, 2021 will become an important date in the automotive sector, since Peugeot and Fiat should on this day formalize their union. This new Franco-Italian-American collaboration is aiming for new heights since it is now the third largest automotive group in terms of turnover behind Toyota and Volkswagen.
The union between PSA and Fiat will be called Stellantis. From this alliance, PSA and Fiat will house 14 brands, each more emblematic than the next, as well as 400,000 employees. From now on, Citroën, Fiat, Opel, Peugeot, Alfa Romeo, Chrysler, Dodge or even Jeep and Maserati will all be brands housed in the same boat.
Unity is strength.
Like many industries, the auto sector has been hit hard by the pandemic and the measures put in place by governments to try to contain the virus. According to Giuliano Noci, an emeritus professor of strategy at Polytechnic Milan, this decision had to be made. He explains : “This merger was a question of survival, and that goes for Fiat as well as for PSA”. It must be said that the fight against this terrible virus is not the only concern of its giants. Companies of this size must face a multitude of other challenges, whether technological, strategic, or quite another aspect.
Indeed, the electrification of car fleets, not to mention autonomous driving, are for example subjects that require a lot of attention from these multinationals. However, managing such a crisis in addition to continuing third-party projects is hardly possible without help. Here is why PSA and Fiat have just announced this tightening of elbows to continue to move forward without falling further behind the competition and bypassing the difficulties of the health crisis.
It is Carlos Tavares, the current president of the management board of PSA, who will take control of Stellantis. The future CEO said: “Only the most agile, in a Darwinian spirit, will survive”.