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Since last year, there has been news of a merger between PSA and FCA until the end of the year when the two sides signed a joint agreement to achieve a full merger of the two companies with a share ratio of 50:50. However, affected by the epidemic and other factors, the merger of PSA Group and FCA Automobile Group has been questioned by the outside world. In order to break the deadlock, new news came out between the two sides a few days ago.

A few days ago, FCA (Fiat Chrysler) and PSA (logo Citroen Group) jointly announced that the merged enterprise will be named "STELLANTIS". The name for STELLANTIS is mainly evolved from the Latin verb word "stello", which means "to brighten with star shines with the stars".

It is worth noting that the "Stellantis" logo will not be used on any new car, which is the corporate name of a carmaker like the Renault-Nissan-Samsung alliance, but the PSA and FCA have more meaning than the former.

According to the plan, the two sides will also announce the logo (logo) of the new group after the merger, but the above logo and name will also be applied only at the group level, and sub-brands such as Jeep, Peugeot and Citroen will also use their original brand names and brand logo.

It is understood that on October 30 last year, Fiat Chrysler began to discuss the merger with Peugeot Citroen. In December of the same year, an agreement was signed to merge the operations of the two sides at 50:50. However, in March this year, foreign media reported that the two sides affected by the COVID-19 epidemic would merge and fail.

The reason is that "now both sides need to reconsider the financial terms of the merger." In addition, assumptions about the valuations of the two companies, revenue forecasts and sales in 2020 and beyond must now be reassessed. "

In response to this, Tang Wei, CEO of PSA Group, said at the annual shareholders' meeting on June 25 that the pandemic phase was not the time to re-examine the deal with FCA Automobile Group, and warned all parties not to attempt to sabotage the merger plan of PSA Group and FCA Automobile Group.

Tang Weishi stressed that he is confident that the merger with FCA Automotive Group will produce the expected synergies and is expected to be completed in the first quarter of 2021 at the latest.

With the spread of all kinds of new news, it can be seen that the merger between the two sides has gradually become effective. According to the size of the two sides, the combined new company will become the world's fourth largest automobile group with annual sales of 8.7 million units, behind the German Volkswagen Group, Toyota and Renault-Nissan-Mitsubishi Alliance. In terms of operating income, the combined new group will have annual revenue of about 170 billion euros, ranking third in the global automotive industry.

According to the plan, the merger of the two groups will have ultra-luxury, luxury, mainstream passenger car brands, as well as complementary products and brand combinations such as pick-up trucks and light commercial vehicles, which will give the new group a balanced and profitable global layout. The new group will own Peugeot, Citroen, DS, Opel, Vauxhall, Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Lancia, Maserati, RAM and SRT.

As a matter of fact, the merger plan between the two sides is also affected by the shrinking global auto market and intensified competition, so that the two sides will develop in a "clustered" way.

According to the FCA Group's first quarter report, the company continued to operate a net loss of 1.7 billion euros, an adjusted net loss of 500 million euros. As of March 31, 2020, the available liquidity of the Group is 18.6 billion euros. Global sales were 818000, down 21% from a year earlier.

And PSA Group released first-quarter 2020 results show that the group's first-quarter revenue of 15.179 billion euros, down 15.6% year-on-year. Among them, the PSA automobile business segment achieved revenue of 11.934 billion euros in the first quarter, down 15.7% from the same period last year, while sales fell to 627000 vehicles.

In any case, with more news from the two groups, it will be confirmed that PSA Group and FCA Automobile Group may usher in new developments in the future market, but in the Chinese market, neither side seems to see too much surprising hope, and it is worth looking forward to how the two sides will adjust to the Chinese market after the merger.

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