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Fiat Chrysler And PSA Shareholders Approve £38 Billion Merger

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Fiat Chrysler And PSA Shareholders Approve £38 Billion Merger

Shareholders at Fiat Chrysler and PSA Group have approved a £38 billion ($52 billion) merger.

The deal means the new company, Stellantis, will be the fourth biggest car manufacturer in the world.

The mega merger will make the company home to 14 different brands. Credit: PA
The mega merger will make the company home to 14 different brands. Credit: PA

In total Stellantis will have 14 brands, including Fiat Chrysler's Fiat, Maserati and US-focused Jeep, Dodge and Ram, and PSA's Europe-focused Peugeot, Citroen, Opel and DS.

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Talks began two years ago and more than 99 percent of shareholders backed the merger today (Monday). Executives expect the merger to be finalised by the end of March.

The move brings with it the possibility of job losses, as the company looks to cut costs.

Karl Brauer, executive analyst for the iSeeCars.com, told Market Watch: "You can't be cost efficient if you keep the entire scale of both companies.

"We've seen this show before, and we're going to see it again where they economise these platforms across continents, across multiple markets."

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In November, PSA pledged not to close factories after the merger - despite the fact the combined group would have spare production capacity of almost six million cars.

Featured Image Credit: PA

Topics: World News, Car, Cars

Jake Massey
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