admin Green light has been given to the merger between Fiat, Chrysler and PSA by the European Union on the premise that would look into the fears of the competition and bring about a solution for all their problems effectively.
After the merger the company would be called Stellantis and it would become the fourth largest automobile marker and the third largest in automobile sale all across the globe. This mega merger of car brands was announced late in the year 2019 and was in talks for almost a year before finally receiving a conditional approval from EU.
A noteworthy feature of this mega merger is that each of the brands included in the merger shall not be robbed of their marque and will continue to exist.
This approval from EU has been pending for quite some time now and EU has clarified that it has conducted thorough research before giving a green light to this merger. All concerns in relation to the stifling of the competition have been addressed.
As of now, this approval shall remain conditional and will only be finalised once all compliance requirements that were promised are fulfilled. The main concern over this merger is that the lucrative markets in Europe especially for vans would come under the fire as it was a market which offered a significantly less manufacturing cost but at the same time a reasonably well selling price.
PSA has further confirmed on its behalf that this merger shall not impact any prior agreements as it has one with Toyota to manufacture the vans. They have said that the contract is up and running and vans would still be sold under the Japanese brand for the whole of Europe.
Moreover, in the official statement, they have offered access for van repair and maintenance networks for all the competitors in the market.
Many global superpowers were doubtful of this merger after the pandemic as sales had gone down enormously but almost all of these companies have managed to stabilize their sales after heavy plunges.
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