Stellantis

Stellantis is a multinational automotive company formed in 2021 by the merger of Fiat Chrysler and PSA Group (known legally as Peugeot S.A.). The company has 14 well-known automobile brands, including Dodge, Jeep, and Maserati. Stellantis is headquartered in Amsterdam.

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Bulky car models, such as the 2007 Jeep Compass, had been losing popularity among American consumers, leading manufacturer Chrysler to merge with companies such as Fiat.

PRNewsFoto/Chrysler Group/LK Photographic, Inc./AP Images

Chrysler was an American automotive company founded in 1925 in Detroit. In addition to Chrysler vehicles, the company also owned Dodge and Jeep. Despite its prior success, Chrysler found itself in dire straits in the late 2000s. After being acquired by private equity group Cerberus Capital Management in 2007, Chrysler had been losing nearly one billion dollars every month. That, along with a failed merger with Daimler-Benz (now Mercedes Benz Group) and the decreasing popularity of Chrysler’s cars, led to much speculation about the company’s future.

When Chrysler began searching for a strategic business partner, executives focused on automotive companies that offered affordable small and midsize vehicles, aiming to balance their brand’s mix of larger vehicles. Chrysler considered joining the Nissan-Renault alliance or pursuing a merger with General Motors. Ultimately, Chrysler chose to merge with the Italian automotive company Fiat, which was successful in Europe but not so popular in the U.S. Chrysler faced the possibility of bankruptcy, but, along with General Motors, it was bailed out by U.S. Pres. George W. Bush in December 2008. In January 2009 Fiat took a 35 percent stake in Chrysler; four months later, Chrysler filed for bankruptcy. The company was restructured in June 2009, this time with Fiat taking a 20 percent ownership stake in Chrysler. The other principal owners of the company were the U.S. government and the United Automobile Workers (UAW) union.

For the first time, Fiat vehicles and brands were offered to American car buyers through Chrysler’s auto dealerships. Fiat’s smaller vehicles filled the gaps in Chrysler’s product lineup, saving Chrysler from needing to research and develop new models. In less than two years, Chrysler repaired its faltering business and paid off its outstanding debts.

In January 2014 Fiat increased its ownership stake to 100 percent, and the companies merged to form the multinational organization Fiat Chrysler Automobiles (FCA). In 2019 FCA announced that it would merge with French automaker PSA Group, a company known for its European vehicle brands Opel, Vauxhall, and Citroën. In 2021 the $52 billion merger was completed, and the resulting megacorporation was named Stellantis N.V.

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A Maserati MC20, a two-seater sports car produced by the Italian automobile manufacturer Maserati. Maserati is one of 14 brands under Stellantis.

© Mike Mareen/stock.adobe.com

Stellantis’s plan after the merger has been to strengthen the reach of its brands in China and, through plans such as its Dare Forward 2030 initiative, to shift toward producing electric vehicles. The company has also invested in autonomous driving technologies and in 2022 acquired the artificial intelligence company aiMotive, known for its autonomous driving software. Stellantis’s complete product lineup includes the brands Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram, and Vauxhall.

Although the 2020s began with an eye to future profitability, by 2024 it had become clear that the process would take longer than anticipated. After posting a 27% drop in net revenue during the third quarter of 2024—amid layoffs and other cost-cutting measures that strained the company’s relationship with the UAW—Stellantis CEO Carlos Tavares resigned, three years into his five-year contract with the company.