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Stellantis is official: FCA and PSA merger finally sealed

MILAN — Fiat Chrysler and PSA sealed their long-awaited merger on Saturday to create Stellantis, the world's fourth-largest auto group with deep enough pockets to fund the shift to electric driving and take on bigger rivals Toyota and Volkswagen. It took over a year for the Italian-American and French automakers to finalize the $52 billion deal, during which the global economy was upended by the COVID-19 pandemic. They first announced plans to merge in October 2019, to create a group with annual sales of around 8.1 million vehicles. "The merger between Peugeot S.A. and Fiat Chrysler Automobiles N.V. that will lead the path to the creation of Stellantis N.V. became effective today," the two automakers said in a statement. Shares in Stellantis, which will be headed by current PSA Chief Executive Carlos Tavares, will start trading in Milan and Paris on Monday, and in New York on Tuesday. Now analysts and investors are turning their focus to how Tavares plans to address the huge challenges facing the group – from excess production capacity to a woeful performance in China. Tavares will hold his first press conference as Stellantis CEO on Tuesday, after ringing NYSE's bell with Chairman John Elkann. FCA and PSA have said Stellantis can cut annual costs by over 5 billion euros ($6.1 billion) without plant closures, and investors will be keen for more details on how it will do this. Marco Santino, a partner at consultants Oliver Wyman, said he expected Tavares to disclose the outlines of his action plan soon, but without divulging too many details at first. "He has proven to be the kind of person who prefers action to words, so I don't think he will make loud statements or try to over-sell targets," he said. Like all global automakers, Stellantis needs to invest billions in the years ahead to transform its vehicle range for the electric era. But other pressing tasks loom, including reviving the group's lagging fortunes in China, rationalizing its huge global empire and addressing massive overcapacity. "It will be a step by step process, also to allow the market to better appreciate every single move. I don't think we will have all the details before one year," Santino said.

This is Citro"en's amazing diorama tribute to celebrate its WRC winnings

Citroen has taken a unique stab at commemorating Sebastien Loeb and Daniel Elena's nine World Rally Championship wins. Rather than work up yet another tired video of the champions expounding on the virtues, trials and and tribulations that come with being the very best for nearly a decade straight, the company whipped up a diorama atop Citroen DS3. The scale model covers nine separate rally terrains, including bits from Rally Finland and the Acropolis Rally. Each one of the nine sections features a 1:43 scale version of the duo's rally car from each year of victorious competition.
The model took Kieron Barter of Funky Lemon Design and his team some two months to complete. Initially displayed at the Society of Motor Manufacturers and Traders, the diorama is set to start a tour of various dealers beginning today. Check out the full press release below for more information.

Citro"en to launch value-oriented C-line as part of brand reorganization

A report in Autocar says that PSA Peugeot-Citroën is realigning its brands. Peugeot will take the top slot to fight in the "premium mainstream" segment; in other words, Volkswagen. Citroën is said to be pointing its spear at a space that has Ford above and Dacia below, while its "DS arm" is classified as "near premium," but it isn't clear how high its aspirations climb. The entry-level point will be occupied by a C-line to be introduced by Citroën that would be "a balance between cost and functionality" and will take cues from the Lacoste concept shown at the 2010 Paris Motor Show (seen above).
The company has split its design studio into halves, one side for DS, the other for the C-line. The C-line's philosophy will be "bold" styling outside with "ease of use and simplicity" everywhere else. Build options will be kept low in order to maintain profits and low prices, but the options sheet won't be bare. The first offering in the line could be shown at the Frankfurt Motor Show, and will preview the replacement for the C3.