The ongoing process to merge Fiat Chrysler Automobiles NV and French automaker Groupe PSA took another step forward as the two sides released the name of the new entity: Stellantis.
Borrowing from the Latin verb “stello” meaning “to brighten with stars,” the name is not drawn from a new pharmaceutical product or obscure relative of a praying mantis, instead it’s meant to reflect the “new and ambitious alignment of storied automotive brands and strong company cultures that in coming together,” according to the joint statement from the companies.
In practical terms, not much will change. The brands under the new umbrella will retain their same names. The name is more of a way to identify the merged operations as a corporate entity or brand.
The merger of Fiat Chrysler and Groupe PSA encompasses the Italian American automaker’s Ram, Jeep, Dodge, Chrysler, Fiat and Maserati brands and the French company’s Peugeot, Citroën, Opel, Vauxhall and DS brands.
For example, Fiat Chrysler’s North American headquarters in Auburn Hills will become the Stellantis North American headquarters. While the name has been selected, a new logo has not, but officials said that is coming.
The two sides are hoping to form a union that will shore up their shortcomings, making them a leader in the “next era of mobility while at the same time preserving all the exceptional value and the values of its constituent parts.”
“Stellantis will combine the scale of a truly global business with an exceptional breadth and depth of talent, knowhow and resource capable of providing the sustainable mobility solutions for the coming decades,” the statement reads.
“The name’s Latin origins pay tribute to the rich history of its founding companies while the evocation of astronomy captures the true spirit of optimism, energy and renewal driving this industry-changing merger.”
In December, the two companies signed a binding agreement for the 50-50 transatlantic merger is supposed to bolster themselves in some product and technology areas and produce a projected annual savings of $4.1 billion in the process.
The new company would have revenues of nearly €170 billion, or $189 billion and combined sales of 8.7 million vehicles would position it as the fourth-largest automotive manufacturer, behind only Volkswagen, Toyota and the Renault-Nissan-Mitsubishi Alliance, and ahead of General Motors.