A few days ago, PSA Group issued a document announcing that the merger transaction between PSA Group and Fiat Chrysler Automobiles (FCA) was officially completed on the same day, and the two parties merged at 50:50 to establish a new group: Stellaris.
After the merger, Stellattis will be the world’s fourth-largest automaker after the alliance of Toyota, Volkswagen, Renault, Nissan, and Mitsubishi.
Along with this, Stallantis will have 14 car brands, including FCA’s Fiat, Maserati and JEEP, Dodge, Ram in the US market, and PSA’s Peugeot, Citroen, Opel, and DS, etc., more than the world’s largest car company Volkswagen Group many.
However, whether it is FCA or PSA, in China, the world’s largest automobile consumer market, the performance of both is hard to say. For this reason, the newly established Stellattis may further expand its circle of friends in China.
A few days ago, there were media reports and people familiar with the matter revealed that the Stellattis Group intends to establish an absolutely controlling joint venture in China. The current negotiating shareholding ratio is 75%. The business scope includes commercial vehicles, passenger vehicles, and new energy vehicles.
The person also revealed that the Stellattis Group has at least contacted Chery Automobile and Guangzhou Automobile Group.
However, today, the latest established Stellattis issued a statement stating that the new group Stellattis, formed by the merger of PSA Group and FCA Group, firmly denies media reports that ‘Stellantis Group is planning to establish a new joint venture in China’.
Stellaris Group will, as always, be committed to the cooperation with its current partners-Dongfeng Motor Group and Guangzhou Automobile Group.
Although the official has come forward to clarify that a new joint venture company will not be established. However, it is an indisputable fact that the sales of FCA and PSA in the Chinese market are sluggish and the development trend is sluggish.
Currently, Changan PSA has been canceled. Dongfeng Peugeot Citroen’s Dongfeng Peugeot-Citroen’s Dongfeng-Citroen has only 43,600 sales in 2020; while FCA’s other joint venture, GAC Fick, has only 40,500 sales in 2020, a year-on-year decline of 45.18%.
However, Shenlong Automobile and GAC Fick have a cumulative production capacity of approximately 1.2 million units in China, that is, the current capacity vacancy rate exceeds 90%.
Now, how to digest the huge vacant production capacity in the Chinese market for the merged Stellattis Group is a huge problem. This is also the most important challenge for Tang Weishi as the CEO of the new group.
(Source)
