"Why Peugeot Citroen no longer exists from today"

[dutchman]

The French car maker is now part of a new company



French car maker Peugeot Citroen no longer exists from today following one of the biggest mergers to take place in the automotive industry in recent times.

The Peugeot Citroen company (PSA Group), which has its UK headquarters in Coventry, is now part of a new entity called Stellantis following its merger with Fiat Chrysler Automobiles.

The merger was completed on Saturday January 16 and the new company’s common shares began trading on Euronext in Paris and the Mercato Telematico Azionario in Milan today (Monday January 18).

Trading on the New York Stock Exchange will begin on Tuesday January 19.

The merger sees the unification of a host of famous automotive brands under one company.

They include Peugeot, Citroen, DS, Vauxhall, Opel, Fiat, Abarth, Alfa Romeo, Lancia, Maserati, Chrysler, Dodge. Jeep and RAM.

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

The new company will have the capacity to produce 8.7 million cars a year, behind Volkswagen, Toyota and Renault-Nissan.

Fiat Chrysler, which was created from the merger of the Italian and US car companies in 2014, closed Friday down 4.35% at 12.57 euros, having gained in previous days.

Its closing market capitalisation was under 20 billion euros, far off its 2018 highs of more than 30 billion euros.

[dutchman]

Can anyone remember any good coming from any of these mergers because I can't?

[rebbonk]

Rarely do 'mergers' work with established companies; rarely, do the so-called synergies come to fruition.

What usually happens is that internal fights go on as to which company has the best systems/people/processes. With all the internal fighting going on, they all too often lose sight of their customers and market.

MBA courses are littered with such cases. They promise, in theory, so much, yet deliver next to nothing.