Change Edition

Firm created by Fiat-PSA union denies new merger is on cards
Auto giant

Firm created by Fiat-PSA union denies new merger is on cards

17.01.2021
Stellantis, world's fourth-largest carmaker, says it "remains committed" to Chinese partners
Shareholders in French automaker PSA approved a merger with US-Italian group Fiat Chrysler earlier this month Photo: AFP
Shareholders in French automaker PSA approved a merger with US-Italian group Fiat Chrysler earlier this month Photo: AFP

Stellantis NV, the newly-formed company from the merger between Fiat Chrysler Automobiles NV and PSA Group, has denied that it is in talks for a new merger with Chinese carmakers.

“Stellantis remains committed to its current joint venture partners Dongfeng Motor Corporation and Guangzhou Automotive Group,” it said on Sunday, in a statement to Bloomberg.

Earlier this month, investors in both Fiat Chrysler Automobiles NV and PSA Group approved the merger to form Stellantis, the world’s fourth-largest automaker.

Local media Yicai reported that Stellantis is in discussions to form a new venture with Chinese carmakers Chery Automobile Co. Ltd. and Guangzhou Automobile Group. Stellantis is planning to hold 75% of the shares in the venture, which will make a variety of vehicles, including energy efficient ones, according to Yicai, citing unnamed sources.

Stellantis may also close an existing joint venture in China to offload some of its capacity, the publication said.

©2021 Bloomberg L.P.