Resident Photoshop Nerd
Not equals, PSA merged into FCA.
|2.||BACKGROUND TO THE MERGER AND REASONS TO MERGE|
The leader is... John Elkann.The corporate structure is as you say - FCA is absorbing PSA. The leader will then be PSA’s leader. I think they are trying to make it pretty equal. They were smart to make a new name that doesn't use the old names. I know Stellantis is not the most beloved name here, and I agree there have been better, but... I think it’s safe to say that DaimlerChrysler might have worked better had they chosen a neutral third name. At least then nobody could look at the name a proof that Chrysler came last.
And where does that money come from? Well, I guess some of it comes from PSA giving up their gasoline and diesel engine programs...Stellantis has it's work cut out for it.
American's were burnt by the last merger of equals.
Money will have to be invested on product and plants.
The corporate structure is as you say - FCA is absorbing PSA. The leader will then be PSA’s leader. I think they are trying to make it pretty equal. They were smart to make a new name that doesn't use the old names. I know Stellantis is not the most beloved name here, and I agree there have been better, but... I think it’s safe to say that DaimlerChrysler might have worked better had they chosen a neutral third name. At least then nobody could look at the name a proof that Chrysler came last.
I think John hopes that Tavares comes close to what he saw in Sergio... Does he speak Italian?
They pretty much had to do it that way if they wanted Exor, Peugeot, France and Dongfeng to get double voting rights after 3 years, since PSA is a French company and the merged company had to be Dutch to make that happen. "FCA is a public limited liability company (naamloze vennootschap), incorporated under the laws of the Netherlands, with corporate seat in Amsterdam, the Netherlands, and address at 25 St. James’s Street, SW1A 1HA, London, United Kingdom, registered with the Dutch trade register under number: 60372958." It's a legal technicality, it doesn't mean it isn't a merger of equals, then again it doesn't mean it is.Not equals, PSA merged into FCA.
Some official stuff for you:
2. BACKGROUND TO THE MERGER AND REASONS TO MERGE
On December 17, 2019, PSA and FCA entered into a combination agreement, which was subsequently amended on September 14, 2020 (as amended, the “Combination Agreement”), to effect a strategic combination of their businesses.
It is intended that the combination will be achieved by means of a cross-border legal merger pursuant to the provisions of the Directive 2017/1132/EU of the European Parliament and of the Council of June 14, 2017 relating to certain aspects of company law transposed into Dutch law in Part 7, Sections 2, 3 and 3A of Book 2 of the Dutch Civil Code and into French law under articles L. 236-25 et seq. and R. 236-13 et seq. of the French Commercial (the “Merger”).
PSA and FCA entered into the common draft terms of the cross-border merger (the “Cross-Border Merger Terms”) pursuant to which as at the effective time of the Merger, (i) PSA will be merged with and into FCA and will cease to exist as a stand-alone entity, while (ii) by operation of law, FCA, as the surviving entity, will acquire all assets and assume all liabilities, rights, obligations and other legal relationships of PSA.
On the day immediately following completion of the Merger, FCA will be renamed Stellantis N.V. (“Stellantis”).
They don't need money for platform development that has already been done. Most of the federalization has even been done. It looks like they are going to have to modify them for Fiat engines and whatever transmission is chosen. Although in the short term they could probably get away with merely retuning the 408, 508 L and DS9 with the Prince engine (likewise 4008, 5008 and DS7 crossovers). They just have to change the exterior parts in front of the front fenders and behind the rear fenders. They can hit 60% of the US market with those two platforms.And where does that money come from? Well, I guess some of it comes from PSA giving up their gasoline and diesel engine programs...
Point #1 Something tells me that Senhor Tavares has a much better sense of sartorial taste than the late Sig. Marchionne.More importantly...does he like sweaters?
(PS, I think the new format sucks...)