The Fiat Chrysler-PSA mega-merger may give rise to a carmaking star

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Now that electric cars are becoming more popular, Stellantis's plans for electrification may have more chance of success

Group, the French owner of Citroën and Peugeot, do not like to dwell on their shared past. Whenacquired Chrysler Europe in 1978 for a nominal $1 it picked up some struggling British and French marques and a heap of debt. That tie-up crashed a few years later with the demise of Talbot, the brand created from these motoring scraps. On January 4th shareholders of both firms voted to give it another go, acceding to a mega-merger agreed in 2019. Hopes seem higher this time.

Stardust is sadly lacking from an industry that, along with many others, has taken a beating in the pandemic. But the creation of the world’s fifth-largest carmaker by vehicles produced is well set to deal with the effects of covid-19—and to navigate the other difficulties facing the automotive business.

The pandemic has sent screeching into reverse an industry that was already going backwards, as demand slumped in car-mad China. Annual worldwide sales fell from 94m units in 2017 to 90m in 2019. Covid-19 depressed sales by 15% in 2020, to 76.5m, according toOn the bright side, they are expected to rebound sharply this year. The signs are encouraging. Monthly Chinese sales have exceeded last year’s in the second half of 2020.

Despite the rebound, the industry is not likely to get back to its size in 2019 before 2023. What does that mean for Stellantis ? Size will let it spread the costs of new technology. The savings, forecast at €5bn a year, are more important than ever while the industry recovers. Cash reserves will be shored up by the decision of’s investors in September to accept a reduction in the special dividend that was part of the deal, by nearly half, to €2.9bn.

 

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Whatever route will keep orange 🍊 dude from running EVER again for PREZ, NO PENSION for life, NO Secret Service for life ..1) Impeachment with conviction OR 2) Orange 🍊Resigning OR 3) 25th admendment. TAXPAYERS should NOT be paying for LIFETIME benefits for 45! PRISON!

How many merger does by Chrysler before, no hope.

horrible

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