Stellantis is the new name of a company that is to emerge from the merger of the PSA automotive group, which also includes Opel, with Fiat Chrysler. Together they would be the fourth largest automobile company in the world.
Brussels – The EU Commission has given the green light for the merger of the French Opel parent company PSA with the US-Italian manufacturer Fiat Chrysler (FCA). The two automotive groups have made sufficient commitments to continue fair competition, said EU Commission Vice President Margrethe Vestager on Monday. The company named Stellantis resulting from the merger would be the fourth largest automobile company in the world.
The Brussels competition watchdog had raised concerns that the notified merger could affect competition in light commercial vehicles in nine EU countries. In Belgium, France, Greece, Italy, Lithuania, Poland, Portugal, Slovakia and the Czech Republic, PSA and FCA have “high or very high market shares”.
Access to workshops should be guaranteed
To allay the concerns, PSA offered on the one hand to expand its cooperation with the Japanese competitor Toyota. PPE will therefore produce more and cheaper for the Japanese and sell in the EU. According to the Commission, this will enable Toyota “to compete with the newly established company in the relevant markets”.
Second, according to the Commission, PSA and FCA pledged to make it easier for competitors to access their authorized repair shops. “For example, no brand-specific reception or waiting areas reserved for owners of FCA / PSA commercial vehicles are stipulated” and the same tools may be used when repairing and maintaining competitor vehicles.
Competition should be maintained
“The combination of these commitments will enable effective competition to be maintained in the post-merger market and thus fully address all of the Commission’s competition concerns,” the Authority stated.
The French company PSA builds the Peugeot and Citroën brands alongside Opel. In addition to Fiat and Chrysler, FCA also has Jeep, Maserati, Alfa Romeo, Dodge and Ram in its portfolio.