Welcome to Stellantis, the newly created Auto company formed by the merger of Peugeot S.A. and Fiat Chrysler Automobiles N.V. Stellantis will trade on the NYSE from Tuesday (1/19/21) under the ticket STLA. This ticker should not be confused with the ticker TSLA which is for another well-known automaker Tesla. Of course, Tesla’s production output is nowhere near Stellantis, which is the fourth-largest automaker in the world. Stellantis will haver annual sales of about 8.1 million vehicles.
The name Stellantis sounds like a name of a new drug. Drug companies in the US are known for coming up with all kinds of weird names for their over-priced drugs with names like Symbicort, Neulasta, Abilify, Keytruda, Otezla, etc. While this strategy works for drug companies, it remains to be seen if consumers feel comfortable to buy a Stellantis car or even used the word when talking about cars.
Below is a brief excerpt from an article in WSJ:
Fiat Chrysler FCAU -4.93% Automobiles NV and Peugeot-maker PSA Group PUGOY -5.70% cemented their trans-Atlantic merger Saturday, creating Stellantis NV, a global auto-making giant that executives say will have the heft needed to compete in a fast-changing industry.
The deal, first agreed to in late 2019 and approved earlier this month by shareholders, comes as the global car business is rapidly shifting to new technologies, such as electric vehicles, and battling upstarts trying to upend everything from the way cars are engineered and built to how they are sold.
Stellantis, derived from Latin term meaning “to brighten with stars,” ranks as the world’s third-largest auto maker by sales, according to 2019 figures, the latest available. At Friday’s close, it was worth more than $51 billion. The newly formed car company plans to start trading under the ticker symbol STLA on the Paris and Milan stock exchanges Monday and in New York on Tuesday.
Stellantis will have a major presence in North America and more than a quarter of the market in Europe, selling vehicles through a massive collection of brands, ranging from American names like Jeep and Ram to Peugeot, Citroën and Opel in Europe and Maserati and Alfa Romeo on the luxury end.
Source: Fiat Chrysler, PSA Group Merge to Create New Auto-Making Behemoth, WSJ
With a collection of a so many well-established brands it would be interesting to watch if this new company is successful.
Disclosure: No Positions
Related lists:
