Arrow-right Camera

The Spokesman-Review Newspaper The Spokesman-Review

Spokane, Washington  Est. May 19, 1883
Clear Night 32° Clear
News >  Business

Carmakers FCA and PSA confirm progress toward full merger

UPDATED: Wed., Oct. 28, 2020

 (Associated Press)
(Associated Press)
Associated Press

MILAN — Fiat Chrysler and PSA Peugeot on Wednesday confirmed progress toward their full merger to create the globe’s fourth-largest carmaker, with completion expected by the end of March 2021.

The merger of the Italian-American car company with its French rival, agreed last year, is aimed at creating a carmaker with the scale to confront the challenges of stricter emissions regulations and the transition to new driving technologies. The new company will be called Stellantis.

The boards of the two companies signed cross-border terms of the deal that will allow Groupe PSA to sell a small stake in the French automotive supplier Faurecia, in a bid to facilitate regulatory approval, the companies said in a statement. PSA currently holds a 46% stake and will dispose of around 7%.

The completion date for the merger is in line with the original time frame, despite the impact of the coronavirus pandemic. The new company will have the capacity to produce 8.7 million cars a year, just behind Volkswagen, the Renault-Nissan alliance and Toyota. PSA’s CEO Carlos Tavares will lead the group, with Fiat Chrysler chairman John Elkann head of the board.

The Spokesman-Review Newspaper

Local journalism is essential.

Give directly to The Spokesman-Review's Northwest Passages community forums series -- which helps to offset the costs of several reporter and editor positions at the newspaper -- by using the easy options below. Gifts processed in this system are not tax deductible, but are predominately used to help meet the local financial requirements needed to receive national matching-grant funds.

Subscribe to the Coronavirus newsletter

Get the day’s latest Coronavirus news delivered to your inbox by subscribing to our newsletter.

Annual health and dental insurance enrollment period open now

 (Courtesy Washington Healthplanfinder)

2020 has been a stressful year for myriad reasons.