Published: Wed, January 20, 2021
Economy | By

Stellantis is official, hits the ground running with eyes on China

Stellantis is official, hits the ground running with eyes on China

"Our commitment on this merger is that we will not shut down plants as a effect of the merger, " Tavares said, pointing to the success PSA Peugeot had turning around General Motors' money-losing Opel and Vauxhall brands after purchasing them in 2017.

Mr Tavares will hold his first press conference as Stellantis CEO on Tuesday, after ringing NYSE's bell with Chairman John Elkann.

Tavares's comments came as Stellantis shares surged more than 10 per cent on their NY debut, mirroring strong increases in its French and Italian listed stocks since their launches on Monday.

FCA and PSA have said Stellantis can cut annual costs by over 5 billion euros (S$8.03 billion) without plant closures, and investors will be keen for more details on how it will do this.

Fiat Chrysler Automobiles (FCA) and Groupe PSA sealed their planned merger as scheduled last weekend, resulting in the creation of Stellantis, the world's fourth-largest automaker.

Tavares said the task force of Stellantis' top five executives would work on solutions for a comeback there.

He said the firm is "reviewing those different scenarios" and expects to make a decision about the Ellesmere Port plant "within a few weeks".

When asked if that could include a new local partner, Tavares said the company "would not exclude anything".

The automobile group, now known as Stellantis NV and employing about 400,000 people, manufactures 14 automobile brands, including Fiat, Chrysler, Opel, Peugeot, Citroën, Jeep, Maserati and Alfa Romeo.

Tavares, who was previously PSA's CEO, said all 14 brands would be given a chance "to rebound" and invest in new products as the group focuses on profitable growth.

Tavares told Italian daily La Repubblica the aim was to reach full capacity at all the group's production facilities.

"If we are told that in 2030 internal combustion engines can not be sold in the United Kingdom - which we respect as a decision from the country - then we are not going to invest in internal combustion engines anymore because that makes no sense".

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