PARIS - Stellantis, the world’s newest carmaker forged from the merger of Fiat Chrysler and Peugeot parent company PSA, is "very confident" in its ability to deliver the planned 5 billion euros (R90 billion) worth of synergies, its chief executive Carlos Tavares said this week.
In fact 80 percent of these synergies could be achieved in just four years, he added.
The merger, completed on Saturday, has created the world's fourth-biggest carmaker to help make the switch to the new era of electrification and automated driving.
"The purpose is not to be big, but to be great at what we do," Tavares said.
Stellantis will have 14 brands, from FCA's Fiat, Maserati and US-focused Jeep, Dodge and Ram to PSA's traditionally Europe-focused Peugeot, Citroen, Opel and DS.
Tavares, who was previously PSA's CEO, said all 14 brands would be given a chance "to rebound" and invest in new products as the group focuses on profitable growth.
It’s also inevitable that in time, the various model ranges will merge onto common platforms, in order to achieve the aforementioned synergies, although exact product details have yet to be disclosed.
Stellantis has said that it will launch 10 new electrified vehicle models in 2021.
A shield against job cuts
In the run-up to their merger, PSA and FCA pledged not to close plants and Tavares said Stellantis' ability to spread costs to invest in new vehicles would act as a "shield" against job cuts.
When asked about the future of the group's Ellesmere Portplant in Britain and whether Stellantis would invest in electric vehicles there following the conclusion of a Brexit trade deal, Tavares said: "we are now reviewing those different scenarios."
"We are now deciding where we are going to put those investments," he said.
Task force for China
Both PSA and FCA have recently fared poorly in China, the world's largest car market. Tavares said the task force, consisting of Stellantis' top five executives, would work on solutions for a comeback there.
IOL & Reuters