Stellantis (Part 1): FCA-PSA Business Integration Completed in January 2021

All global models to be electrified by 2025; expanded partnership with Waymo on autonomous driving



FCA とPSAの統合により地域バランスが向上
Integration of FCA and PSA improves regional balance (Source: Stellantis)

  Fiat Chrysler Automobiles (FCA) and PSA Group (PSA) formally agreed to merge on equal terms in December 2019 and were preparing to do so. The merger was completed on January 16, 2021, and the new company, Stellantis, was formed. The integration will result in annual global sales of approximately 5.95 million units (2020), creating the world's sixth-largest automaker after the VW Group, Renault-Nissan-Mitsubishi Alliance, Toyota Group, GM, and Hyundai Group.

  The new company after the merger will have 14 brands, covering all major segments from luxury cars, volume production cars, SUVs, pickup trucks, and light commercial vehicles. The integration of FCA, which is strong in North America, and PSA, which is strong in Europe, will improve the regional balance in terms of both sales volume and sales revenue.

  FCA's performance in 2020 was significantly affected by the COVID-19 crisis, with FCA's sales down 19.7% y/y to EUR 86.7 billion and adjusted EBIT down 44.8% to EUR 3.7 billion. PSA's sales (excluding Faurecia) declined 19.2% to EUR 47.7 billion, and adjusted operating profit fell 22.7% to EUR 3.4 billion. A simple tabulation shows that Stellantis' 2020 revenue was EUR 134.4 billion, adjusted operating profit was EUR 7.1 billion, and adjusted operating margin was 5.3%. For 2021, the company has only announced its operating margin forecast, which it expects to be 5.5-7.5%, provided there are no lockdowns related to the COVID-19 crisis.

  As for synergies, the company expects to save EUR 5 billion annually consolidating platforms and powertrains, and reducing purchasing costs through increased economies of scale. 80% of synergies are expected to be achieved by the fourth year after integration. Conversely, the one-time cost to implement the integration is expected to be EUR 4 billion.

  The integration is also expected to enable greater investment in research and development related to CASE (connected, autonomous, shared, electric). Under Stellantis' electrification strategy, the company will add 10 electrified vehicles (electric vehicles, plug-in hybrid vehicles, and range-extended vehicles) in 2021, expanding its electrified vehicle lineup to 39 models. In the area of autonomous driving technology, the company will expand its partnerships with Waymo, an Alphabet subsidiary, and EasyMile, a French autonomous driving developer. With regards to mobility services, FCA's subsidiary Leasys and PSA's mobility service brand Free2Move will expand their service businesses.

  For more information on Stellantis' (formerly FCA and PSA) sales volume, and financial results in 2020, new model launch plans, and activities in each market in 2020, please refer to the follow-up report, "Stellantis (Part 2)”.


Related reports:
CES 2021: EV and electrification technologies (Feb. 2021)
OEM Operations in the U.S. in 2020 (Dec. 2020)
Battery Cells Made in Germany - Overcoming Obstacles (Jul. 2020)
OEM Measures to Expand Sales of SUVs and Pickups in the U.S. (May 2020)
FCA and PSA’s Merger (Part 2): Expanding CASE-related investment (Feb. 2020)
FCA and PSA’s Merger (Part 1): Formally Agreed on an Equal Merger (Jan. 2020)