The auto company that some Americans may still refer to as Chrysler became part of a conglomerate called Stellantis NV (STLA), based in the Netherlands, on Jan. 16, 2021. Fiat Chrysler Automobiles ("FCA") officially merged with PSA Group, owner of the Peugeot automobile brand, at that time. Plans for the merger were announced in 2019 but were delayed due to the COVID-19 pandemic.
The combination makes Stellantis the world's fourth-largest automobile maker by volume with 14 vehicle brands and two mobility brands under one roof as of 2024. Fiat Chrysler vehicle brands include Chrysler, Dodge, Fiat, Jeep, Ram, Alfa Romeo, Abarth, Lancia, and Maserati. PSA Group brands include Citroen, DS, Opel, Peugeot, and Vauxhall. Stellantis mobility brands are Free2move and Leasys.
Key Takeaways
- The Chrysler brand was part of Fiat Chrysler, which merged with the parent company of the Peugeot brand in 2021 to create a new company, Stellantis.
- Chrysler suffered some tough financial events before it was purchased by Fiat.
- Brands under the Fiat Chrysler umbrella include Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Ram, Alfa Romeo, Abarth, Lancia, and Maserati.
Chrysler's Long Road
Chrysler was created in 1925 in Detroit by Walter P. Chrysler. The company mostly thrived as the third-ranked of the Big Three U.S. automakers until the late 1970s when it came close to bankruptcy. It required a government bailout for the then-impressive sum of $1.5 billion.
The company regained its footing but again entered bankruptcy in 2009 in the midst of the financial crisis of 2008-2009. Chrysler received another government bailout, this time in the form of a loan from the U.S. government that it repaid in 2011. Fiat then purchased the U.S. Treasury's shares of Chrysler and Chrysler entered into a partnership with Fiat, becoming Fiat Chrysler Automobiles (FCA).
Stellantis Subsidiaries
The merger of Fiat Chrysler and the PSA Group gave Stellantis ownership of a number of subsidiaries with a long history of doing business with Fiat or Chrysler. Comau, Teksid, Mopar, and Maserati are subsidiaries under the Stellantis umbrella.
Comau
Comau specializes in manufacturing production systems. The company has three main divisions: body assembly, powertrain systems, and robotics. Comau works with aerospace and alternative energy companies in addition to the automotive work it does for FCA,. It's expanded its robotic technology systems into all areas of manufacturing, including food and beverage, electronics, consumer goods, and logistics.
In July 2024, One Equity Partners (OEP) signed a binding agreement with Stellantis to become a majority shareholder in Comau. The deal is a planned transaction, originally agreed upon in 2021, and Stellantis will remain an active minority shareholder.
Teksid
Teksid SpA started out in 1917 as a foundry for making engine blocks for Fiat. Teksid makes automotive components from iron and aluminum for FCAunits and other automobile companies worldwide. Its strength is in engine blocks, cylinder heads, transmissions, and suspension assemblies.
Mopar
Mopar is the original equipment manufacturer and supplier of parts for the Chrysler, Dodge, Jeep, and Ram vehicle lines. The company has a full line of parts for repairs plus a catalog of high-performance parts. It's also the U.S. distributor for Fiat parts.
Mopar is frequently used as a term to describe any car designed and manufactured by Chrysler or its divisions since 1920.
General Motors, Ford, and Chrysler were the original "Big Three" U.S. automakers.
Maserati
Maserati SpA is a well-known Italian maker of exotic sports cars and sedans but it has a shaky financial history. Fiat has been an owner since 1989 and has had full control since 1993. Fiat has used partnerships with Ferrari and Alfa Romeo to evolve Maserati into a seller of super-luxury high-performance sedans.
Stellantis Today
On July 25, 2024, Stellantis announced a net profit of over $6 billion for the first half of 2024, down 48% compared to H1 2023, citing lower volume and mix, as well as headwinds from foreign exchange and restructuring costs.
In July 2023, Stellantis began negotiating for a new contract with United Auto Workers (UAW), along with General Motors and Ford. As a result, UAW went on strike on September 15, 2023, having failed to reach an agreement on a new four-year contract. The strike was the first in history to target all Detroit Three automakers, and lasted for about six weeks. The new contracts included 25% wage increases for workers over the duration of the contract, and an 11% boost effective upon ratification.
United Auto Workers (UAW) went on a historic strike against the Big Three automakers, including Stellantis, when a new contract was not agreed upon by 11:59 p.m. on Sept. 14, 2023. As a result, workers negotiated a 25% increase in wages.
Is FCA Now Called Stellantis?
Yes. Fiat Chrysler Automobiles (FCA) completed its merger with Peugeot S.A. ("Groupe PSA") on Jan. 16, 2021. The merger of the two companies resulted in the formation of Stellantis, a conglomerate based in the Netherlands. Stellantis trades on the New York Stock Exchange (NYSE) under the ticker symbol "STLA."
How Big Was the FCA Merger With the PSA Group?
The merger resulted in the formation of a new company, Stellantis, which is the fourth-largest global original equipment manufacturer (OEM) by volume. The estimated annual net revenue of the combined companies was 170 billion euros at the time of the merger announcement in 2019.
Why Did Fiat Chrysler Merge With the PSA Group?
The merger resulted in a diversified company with high margins and approximately 3.7 billion euros in estimated annual synergies. The combination of the two companies created a portfolio of iconic car brands covering a wide range of market segments that are attractive to car buyers. Management has pointed out that the company can use its combined resources to develop new technologies in autonomous driving and new energy vehicles.
The Bottom Line
Chrysler joined the Stellantis NV conglomerate as of 2023. Stellantis is the result of a merger between Fiat Chrysler and PSA Group, forming one of the largest automakers in the world. Stellantis owns several subsidiaries in addition to Fiat and Chrysler, including Comau, Teksid, Mopar and Maserati.
In 2023, the six-week UAW strike against GM, Ford, and Stellantis was the first strike in history to target all Big Three automakers.
