[World14]

According to 'Automotive News', PSA is currently stating that Stellantis will be a "merger of equals" {see, behind a paywall: In 'merger of equals,' PSA is buying FCA, Stellantis prospectus says (autonews.com), or Jalopnik [Fiat Chrysler Has Spoken The Forbidden Words (jalopnik.com) ].
I now understand why some people are worried about this merger. With DaimlerChyrsler being a disaster, I guess this could be a very early tell-tale sing of the times to come. Now, I'm not thinking that a company wide firesale or closure is going to happen in 2022, but you'd think PSA/FCA wouldn't say THAT after the previous disaster....

 

[Doug D]

The Daimler "Merger of Equals" was anything but. It could have been a good merger, but we all know what happened.

 

[allparman]

Goodbye anything not from France. Exit left Fiat, Abarth, Alfa and Lancia in Europe. Ditto Chrysler and Dodge in the US.
Hello ruination of Jeep and Ram. The French are good at screwing things up.

 

[T_690]

According to 'Automotive News', PSA is currently stating that Stellantis will be a "merger of equals" {see, behind a paywall: In 'merger of equals,' PSA is buying FCA, Stellantis prospectus says (autonews.com), or Jalopnik [Fiat Chrysler Has Spoken The Forbidden Words (jalopnik.com) ].
I now understand why some people are worried about this merger. With DaimlerChyrsler being a disaster, I guess this could be a very early tell-tale sing of the times to come. Now, I'm not thinking that a company wide firesale or closure is going to happen in 2022, but you'd think PSA/FCA wouldn't say THAT after the previous disaster....

ROFLMAO

Actually PSA is when which will merge into FCA and cease to exist. Then FCA will change name to Stellantis.

It can be found in official documents.

 

[allparman]

ROFLMAO

Actually PSA is when which will merge into FCA and cease to exist. Then FCA will change name to Stellantis.

It can be found in official documents.

Thank goodness for that. I recall woth horror how Peugeot ruined Citroen even if it did turn a profit afterwards.

 

[Stéphane Dumas]

Thank goodness for that. I recall woth horror how Peugeot ruined Citroen even if it did turn a profit afterwards.

Add the move to call all Simca cars after they acquired Simca and Rootes as Talbot who was a move who turned into a nightmare.

 

[Tony K]

ROFLMAO

Actually PSA is when which will merge into FCA and cease to exist. Then FCA will change name to Stellantis.

It can be found in official documents.

That part is good for folks to know.

I hesitate to say "much ado about nothing," but this is not the DCX "merger of equals," a term that makes Mopar enthusiasts' short hairs stand on end.

 

[Adventurer55]

This merger is as much about long term survival as it is leveraging a larger size to contain future costs. I don't believe Tavares who will be CEO and has spent much time here in the states will fiddle too much with things here. NA makes all the money, and with some fresh things for Dodge and Chrysler could make even more. This new company's biggest hurdles are in Europe and China, not here.

 

[Tony K]

This merger is a much about long term survival as it is leveraging a larger size to contain future costs. I don't believe Tavares who will be CEO and has spent much time here in the states will fiddle too much with things here. NA makes all the money, and with some fresh things for Dodge and Chrysler could make even more. This new company's biggest hurdles are in Europe and China, not here.

Folks need to wrap their minds around what you said. There's no reason for Chrysler and Dodge to do anything other than expand lineup, within reason.

 

[StellD]

It’s a merger of equal.

PSA is the acquier for accounting purpose in ordre to do a reverse merger which is much more simple, rapid, and cost much less than a « normal » IPO.

The surviving entity is FCA, with hq in Netherlands, which will be called Stellantis.

ex FCA shareholders have 50.5% of Stellantis and Exor is the first shareholder with 14.4% of Stellantis, and the only shareholder having an Executive Director (which is the Chairman of Stellantis).

There are only 2 Executives, with Elkann (Exor, Chairman of Stellantis), and Tavares (CEO of Stellantis), and all decisions will be refered to Elkann before being taken by Tavares.

Peugeot and French State are NOT executives.

 

[StellD]

Here is the official document.
Stop reading « anti FCA » medias...

https://www.fcagroup.com/en-US/investors/stock_info_and_shareholder_corner/shareholder_meetings/FiatDocuments/2021/Extraordinary_General_Meeting_January_2021/US_Prospectus.pdf

 

[StellD]

It’s definitly not the same merger as DaimlerChrysler...

In DaimlerChrysler, Daimler-Benz shareholders had 57.55% of it and was in control with a true German control with German hq.

In Stellantis, thé new hq is the FCA’s one, and FCA is the only surviving entity and exFCA shareholders will have 50.47% of Stellantis, with the major shareholder and Chairman of FCA, becoming the new one of Stellantis.

 

[valiant67]

I'm not going to judge a merger based on what's in legal papers.
I'm going to judge it by what's in the showroom.
DCX - Lots of product, cheap interiors, designs that lasted longer than the DCX corporation.
FCA - Contracting lineups, nicer interiors, lots of unfulfilled promises.
Stellantis - The future will tell.

 

[World14]

Actually PSA is when which will

Um.
You good buddy? 😂

 

[World14]

Also, my original thought for the thread is that I now understand why some people don't like this idea.
I'm definitely still game for the merger, as long as the "Peugeot comes to the US market" doesn't happen. There's not really room here for the brand, tbh.

 

[MPE426HEMI]

This is not a "merger of equals"
But “merger of equals” is not a legal definition. And equal stakes, as shown above, do not always mean equal powers. Considering also the fact that PSA is paying a premium, both companies agreed that PSA is the acquirer. From a legal standpoint, PSA Group will be absorbed by FCA N.V., the automaker’s Dutch holding company, which will be renamed Stellantis N.V. on the day after the closing.

 

[77 Monaco Brougham]

It’s definitly not the same merger as DaimlerChrysler...

In DaimlerChrysler, Daimler-Benz shareholders had 57.55% of it and was in control with a true German control with German hq.

In Stellantis, thé new hq is the FCA’s one, and FCA is the only surviving entity and exFCA shareholders will have 50.47% of Stellantis, with the major shareholder and Chairman of FCA, becoming the new one of Stellantis.

My own take on the main reason for the failure of The Occupation...

It failed precisely because it WAS an occupation...not a merger of equals or even anything remotely approaching cooperation and blending of cultures. The culture clash between Northern Europe and North America was pretty much a foregone conclusion.

From a culture standpoint, I think STELL/\NTIS stands a much better chance since both entities are essentially Southern European...with a side dish of North America and a little sprinkle of China thrown in for the flavor.

 

[FreeLantz]

Also, my original thought for the thread is that I now understand why some people don't like this idea.
I'm definitely still game for the merger, as long as the "Peugeot comes to the US market" doesn't happen. There's not really room here for the brand, tbh.

If some Peugeots come to the US badged as Chryslers to tide over that brand til something better can be done, I'm all for that.

 

[jerseyjoe]

Here we go again Daimler did a few good things , foe a while left Jeep and Dodge Ram alone for a while, Introduced the large car platform that soldiers on today. Since that time I have owned 3 large cars, still have the challenger and a 2015 300s that makes me sorry I bought it, rattle city. My 2008 Challenger has a more solid feel. We bought mid sized cars before these and enjoyed them till Daimler ruined them and anything smaller. If I get another vehicle it will be a body on frame Jeep GC. Right now prices of new vehicles look unaffordable to US. I would like to see MOPAR passenger cars go through a leadership cycle before I depart the planet. I think the truck segment is doing well from what I see. Just need to be able to satisfy customers that get the occasional lemon like was done for me. Bad Daimler Stratus V6 got a wonderful deal on a Jeep GC the following year. Tip is it pays to stick with one dealer, my old one is gone!!!

 

[David S]

This is not a "merger of equals"
But “merger of equals” is not a legal definition. And equal stakes, as shown above, do not always mean equal powers. Considering also the fact that PSA is paying a premium, both companies agreed that PSA is the acquirer. From a legal standpoint, PSA Group will be absorbed by FCA N.V., the automaker’s Dutch holding company, which will be renamed Stellantis N.V. on the day after the closing.

You forgot to quote the next paragraph from AN:

"This action is being taken because from the start the holding company was meant to be headquartered in the Netherlands."

Again from earlier in the article

• "The Stellantis board will have 11 directors, six of whom are to be nominated by PSA, PSA shareholders or PSA employees, or are current PSA executives.
• The combined group's first CEO, who is vested with the full authority to individually represent Stellantis, is Carlos Tavares, the current president of the PSA managing board (and CEO of PSA Group).
• PSA shareholders will pay a pre-merger premium.

According to the first two points above, the PSA side will have the upper hand after the merger. This is true even though Exor, the Agnelli family company that is now the largest shareholder of FCA, will hold the largest stake in Stellantis with 14.4 percent. The Peugeot family will have the second largest stake with 7.2 percent, followed by the French state with 6.2 percent and the Chinese group Dongfeng with 5.6 percent; all of the latter three are current shareholders of PSA."

The board is locked in for 4 years and Tavares will be there at least 5 years.