In terms of business news, this is a big one. Groupe PSA – responsible for Peugeot, Citroen, DS and Vauxhall – has successfully completed a merger with FCA. The latter captains Fiat, Jeep, Chrysler, Dodge, Maserati and Alfa Romeo. Combining these two giants has created a mega car firm called Stellantis.
Why? The idea is that by combining resources these brands can be stronger together than apart. But what does that actually mean for people buying cars?
Better cars
In theory, there’s a lot to be gained from this deal in terms of the cars themselves. FCA struggles for car platforms from time to time and can’t enter new segments without costly investment. PSA has a range of highly scalable platforms, some of which were designed as EVs, already in circulation. Just like when PSA bought Vauxhall and the new Corsa utilised the Peugeot 208’s underpinnings, cars like the Tipo will likely share bones with the next-generation Peugeot 308.
The Tipo is a great example of a car that could be greatly improved by PSA’s influence, and Alfa Romeo will now also have easy access to a compact crossover platform to enter the market, akin to Peugeot’s 2008 baby SUV.
Access to America
It is well documented that PSA has been eyeing a return to the American market via Peugeot, however, doing such a thing is a costly gamble. Reestablishing a foreign marque in a country that remains very brand loyal would be an uphill struggle. With FCA’s strengths coming into play, there’s no need for the financial outlay.
Incorporating PSA platforms into small Jeeps that sell strongly, and maybe sending some DS goodies in the direction Chrysler, gives the best of both worlds. Wider adoption of common parts lowers production costs, while well known brands sell the goods.
Cheaper EVs
As mentioned, sharing parts helps keeps the cost down, and that can certainly maximise profits. That said, if Stellantis really wants to be competitive it will translate some of that saving into lowering prices – something that will make costly EVs more enticing.
If Stellantis can undercut competitors by a good margin, it would really steal a march at a critical moment of transition for the automotive sector. If suddenly a Peugeot e2008 can cost the same as its combustion equivalent, the choice of going electric becomes much more tempting to the average buyer.
More vans
In America it’s the Ram brand that looks after commercial vehicles, with the van contingent being based on existing Fiats. Making the switch to PSA vans would allow for an expanded variety to be offered to businesses, while potentially giving Europe some fresh options when it comes to US-based pickup trucks for work.
More breathing space for Alfa Romeo
Alfa Romeo has had quite the revival, with this passionate Italian marque finally being given the change to strut its stuff once again. From rebadged Fiats in the early 2000s to superstar cars such as the Giulia Quadrifoglio, it’s quite the transformation. While there is likely to be an increase of more mainstream products for Alfa – a B-segment SUV using a PSA platform is on the way – it also keeps it safe.
There are now loads of brands in the Stellantis portfolio, and Alfa’s big differentiator is its performance cars. While it’s unlikely that a reborn Alfa Romeo 8C will get the green light, a car that actually became the Maserati MC20, the Quadrifoglio models are a crucial flagship.
Maybe an all-electric Citroen C1 and Peugeot 108?
These little city cars have been around for a while, and just like their cheap and cheerful predecessors, they do well for both Citroen and Peugeot. However, Toyota previously partnered with the French firm and used this collaboration to forge the latest Toyota Aygo. That won’t be the case moving forward, and Toyota’s next-generation car will be its own responsibility.
The future of the little 108 and C1 is not quite known yet, but considering that FCA has just spent a load of money developing an all-electric Fiat 500, that platform could be a good fit.
Maserati to become a halo brand
While FCA maintain very close ties to Ferrari, it is its own entity these days. Maserati is still very much within the FCA fold, so its job will likely be as something of a halo brand. It has the historic background, a reputation for luxury performance, and is a solid launchpad to become something of a technology demonstrator for Stellantis.
Up until the reveal of its MC20, Maserati has been a little unloved. We’d hope for this new group to take full advantage of Maserati’s potential.
Keyword: What does the PSA and FCA merger mean for Peugeot and Fiat?