Stellantis confident on cost savings, announces China review

Darnell Taylor
January 20, 2021

Tavares said that, unlike French rival Renault, there are no plans for the Peugeot brand to renter the US market, where it will continue to focus on leveraging the strength of existing nameplates like Jeep and Ram.

Stellantis shares rose 2.5 per cent in Milan in early trading to 13.18 euros (15.91 United States dollars), recovering losses to Fiat Chrysler from Friday.

The merger is aimed at creating five billion euros in annual savings.

Over the weekend, PSA shares were exchanged into new FCA shares.

FCA CEO Mike Manley - who will head Stellantis' key North American operations - has said 40 per cent of the carmaker's expected synergies would come from convergence of platforms and powertrains and from optimising R&D investments, 35 per cent from savings on purchases, and another 7 per cent from savings on sales operations and general expenses.

Stellantis, the carmaker forged from the merger of Fiat Chrysler and Peugeot-owner PSA, will give all its 14 brands a chance at success and keep all options on the table for revitalizing its struggling Chinese business, it top executive said on Tuesday.

The stock closed in NY up 3.11%.

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- Bells rang in both Paris and Milan for the listing of newly formed carmakers Stellantis.

The merger creates the fourth-largest auto company in the world, and incorporates 14 vehicle brands: Peugeot, Citroen, DS Automobiles, Fiat, Alfa Romeo, Maserati, Abarth, Lancia, Opel, Vauxhall, Chrysler, Jeep, Dodge and Ram.

Chairman John Elkann, heir to the Fiat-founding Agnelli family, said that the new company has "the scale, the resources, the diversity and the knowledge to successfully capture the opportunities of this new era in transportation".

The stock made gains in early trading on Monday, going over the 13-euros mark.

CARLOS TAVARES: I'm very proud to talk to you today to tell you that all of our employees and our management teams are totally focused in the value creation that is embedded in the merger of FCA-PSA, and the creation of Stellantis.

Stellantis now has 29 electrified hybrid and electric vehicles and will add 10 more by the end of 2021. The stock will debut in NY on Tuesday.

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