Was the Chrysler brand discontinued? The automaker some Americans might still call Chrysler is currently a part of the Dutch corporation Stellantis NV (STLA). On January 16, 2021, Fiat Chrysler Automobiles and PSA Group, proprietors of the Peugeot car brand, entered a formal merger. With 15 different vehicle brands under one roof, this approach makes Stellantis the fourth-largest volume auto manufacturer in the world.
The COVID-19 pandemic caused a delay in the merger plans that were first proposed for 2019. At the time of the merger, Fiat Chrysler’s lineup of automobile brands included some brands. They are Alfa Romeo, Lancia, Maserati, Jeep, Ram, Fiat, Dodge, and Fiat Professional. The Citroen, DS, Opel, Peugeot, and Vauxhall brands belonged to the PSA Group. Whether either of these brands will withstand the merger is still being determined.
Overview of Chrysler
The history of Walter P. Chrysler’s company, Chrysler, which was founded in Detroit in 1925, has been a long journey. The business largely prospered as the third-ranked of the Big Three American automakers until the late 1970s, when it was on the verge of going bankrupt and needed a government rescue for an impressive sum of $1.5 billion.
While still amid the 2008–2009 financial crisis, the company regained its footing. But it declared bankruptcy once again in 2009. Another government bailout was given to Chrysler as a loan from the American government, which it paid back in 2011. After that, Fiat bought the Chrysler shares owned by the U.S. Treasury. Chrysler and Fiat formed a joint venture that became Fiat Chrysler Automobiles (FCA).
The merger of FCA and PSA Group
On January 16, 2021, Fiat Chrysler Automobiles (FCA) and Peugeot S.A. completed their merger. Stellantis, a conglomerate based in the Netherlands, was formed due to the merger of the businesses. The ticker symbol “STLA” is used by Stellantis to trade on the NYSE.
With yearly sales of 8.7 million units, the combined firm was expected to become the third-largest automaker in the world by revenue. The merger led to the creation of a new business, Stellantis. It will rank as the fourth-largest OEM globally in terms of volume. The combined firms’ expected yearly net sales at the time of the merger in 2019 were 170 billion euros.
It was predicted that the merger would create a diversified business with excellent margins. Also, with an estimated yearly synergy of around 3.7 billion euros, Management expected that the merger of the two businesses would result in a portfolio of famous automobile brands. It would be widespread across a variety of market segments. They also highlighted how the business could create new technologies for autonomous driving. Also, alternative-energy cars can be created by combining their resources.
Future of Chrysler brand
The Chrysler brand has long been on the verge of demise, with only two models in its lineup. One of which is the outdated 300 sedan. Carlos Tavares is the CEO of the 14-brand Stellantis empire. He said this at a meeting outside of Amsterdam to discuss the company’s future product strategy. He claimed one of the emotional pillars of the previous FCA was Chrysler.
They must provide this brand with a future, and the chance to recover, and Chrysler will be relaunched. The upcoming Chrysler cars “look stunning,” he continued, which is something CEOs frequently say about upcoming products.
The Airflow, an electric compact crossover that will compete with the Tesla Model Y, Ford Mustang Mach-E, and Volvo XC40 Recharge, is projected to be one of the first new vehicles. Tavares mentioned that the Chrysler brand would be all-electric by 2028. But the overall goal in the U.S. across all its businesses is to get to 50% of overall sales of passenger vehicles and light-duty trucks by 2030. Stellantis is naming this strategy Dare Forward 2030.
Fiat is another struggling American brand. It currently only produces the 500X crossover and doesn’t have any firm intentions at this time. Tavares stated, “We still must consider how we can help the Fiat brand recover in the United States.” We have a few ideas, but not all the choices have been decided yet.”
Conclusion
Tavares stated that Stellantis would invest $35 billion in software and battery-electric vehicles in the next five years. This is about half of the firm’s intended expenses. The business intends to have an all-electric vehicle portfolio in Europe by 2030. Also, the goal in North America is to attain 50% by that same year.
Ford and General Motors, Stellantis’ cross-town competitors, already sell E.V.s on the U.S. market and are ahead of them. Tavares claimed that Stellantis will launch its all-electric lineup in 2023 with the ProMaster commercial van. By the decade’s end, at least 25 more all-electric models will have followed.