MILAN (AP) – Shareholders of Fiat Chrysler and PSA Peugeot have voted to merge the U.S.-Italian and French carmakers to create world’s 4th-largest auto company.
The merger is built on the promise of cost savings in the capital-hungry industry. But what remains to be seen is if the long-sought tie-up will be able to preserve jobs and heritage brands in a global market still suffering the shakeout from the pandemic.
Shareholders of both companies on Monday overwhelmingly approved the deal to for the new company, which will be called Stellantis.
The new company will have the capacity to produce 8.7 million cars a year, behind Volkswagen, Toyota and Renault-Nissan.