The PSA / Fiat-Chrysler merger is expected to be approved on Monday by a vote of shareholders from both groups.
Ultimately, this new alliance, called Stellantis, will produce more than 9 million vehicles per year and will be led by Carlos Tavares.
What to shake the European leader Volkswagen and become the fourth largest manufacturer in the world.
After the green light from the European Commission, the PSA / Fiat-Chrysler merger will take a new essential step on Monday with the vote, at a general meeting, of the shareholders of each group in favor of the creation of Stellantis, the new name of a group of 14 brands.
The challenge will be to make Peugeot, Fiat, Jeep, Citroën, Opel and Alfa Romeo coexist, to set up essential synergies in an automotive market emerging from a catastrophic 2020, with sales down by 25, 5%.
This future alliance could well establish itself as the world's fourth manufacturer.
Stellantis will weigh nearly 9 million vehicles per year, and will bring together more than 400,000 employees.
To be competitive, it will be necessary to reduce costs, which Carlos Tavares has already achieved with PSA, then by buying Opel in 2017. It is a question of emphasizing profitability rather than an expensive race for volumes, in particular in using the same production platforms.
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No plant closures
All this should materialize in the very short term, explains Arnaud Aymé, automotive specialist at Sia Partners, to Europe 1.
"We think that the synergies will be very fast. This is why the two manufacturers are in a hurry to sign their merger. There are no plans, to date, to reduce the number of brands, we will see what this gives over time. The priority is to fill the factories as much as possible and then to pool the sales networks to sell in each of the regions. "
No plant closure is planned for the moment.
And if the subject came on the table, the Italian sites seem more fragile than the French, whose productivity is good.
An Asian market that remains to be conquered
The merger will bring the Volkswagen group closer to the leading position in the European market.
Stellantis will also be able to benefit from a significant presence on the American market, with the Jeep, Ram or Dodge brands.
On the other hand, in Asia, and particularly in China which represents a quarter of automobile sales in the world, the two newlyweds are almost starting from scratch.