The European Commission approved a team-up between Italo-American carmaker Fiat-Chrysler and French manufacturer Peugeot on Monday (21 December). Still, Brussels identified several concerns which the firms have pledged to address.
Fiat-Chrysler has been on the hunt for a merger partner for several years and last year looked set to join forces with Renault. However, that planned tie-up was nixed after it became clear that the French government’s influence was too powerful to mitigate.
Instead, the firm turned to Renault-rival Peugeot, whose expertise in building small compact cars and electric-vehicles made it an attractive second choice. Fiat-Chrysler’s US market access is a significant perk for the French company.
The new company, the world’s fourth-largest carmaker, will be grouped under the name ‘Stellantis,’ whose Latin root – Stello – means ‘to brighten with stars.’
Today, the merger was given the all-clear by the European Commission’s competition regulator, which has been assessing the tie-up since May 2020, when the firms notified Brussels about their plans.