This combination of file pictures created on October 30, 2019 shows the FCA logo and the logo of French carmaker PSA Peugeot Citroen. — AFP pic
The 50/50 tie-up, which was delayed by the Covid-19 pandemic, is seen as crucial for the two groups to undertake the investment needed to transition to clean car technology. Ranking behind global rivals such as Volkswagen, Renault-Nissan-Mitsubishi and Toyota, Stellantis will be the fourth-largest automaker by volume and the third-largest by revenue, with a workforce of over 400,000.
The European Commission had been worried the merger could affect competition in Europe’s lucrative van market, with PSA and FCA together accounting for 34 per cent of market share. FCA agreed to lower the exceptional dividend to be distributed to its shareholders while PSA agreed to share out its 46 per cent stake in French automotive equipment maker Faurecia among all shareholders of the new company, rather than its shareholders alone as agreed to previously.Fiat-Chrysler posted net profits of €1.2-billion in the third quarter, compared with losses of €1.04 billion in the second quarter when much of the world was in lockdown.