Stocks Of New Car Giant Stellantis Bursting In US and European Exchanges
3 minutes for reading
Two car concerns – Fiat Chrysler Automobiles and Group PSA – have managed to merge and create a new car giant called Stellantis. The stocks of the merged company are already available in the exchanges of Milan, Paris, and New York. Let’s get acquainted with the new carmaker and get to know how the first days of trades are going.
What’s Stellantis?
Stellantis (from the Latin “stello”, i.e. “lit by stars”) is a merged entity of Group PSA and Fiat Chrysler Automobiles. In autumn 2019, the two car concerns announced a merger but agreed on its terms on January 4th, 2021 only.
Note that at the end of 2020, the European Commission already approved of this trade, seeing no threat of monopolizing the European market of commercial vans.
This means we witnessed the birth of a new car giant. As Stellantis representatives proudly say, the company is number four on the list of the world’s largest car conglomerates in terms of production volume and number three – in terms of its annual revenue.
How did the first Stellantis stocks trade?
On January 18th, the stocks of this new car star appeared in the exchanges of Paris and Milan. On the first day in the French market, the stocks grew by 7.17% to 13.44 USD. On the second day, trade closed at 13.86 USD per stock, which means further growth by 3.11%.
The start in the Milan exchange was brighter: on January 18th, the stocks grew by 7.57% to 13.52 USD, and on January 19th – by 2.6% to 13.87 USD. However, trade started the most impressively in New York – the stocks grew by 10.83% at once, reaching 16.88 USD.
Are the perspectives shiny?
The director-general of the joint enterprise Carlos Tavares thinks that the main advantages of such a merger are a decrease in the expenses on designing new cars and the cheapening of production.
If we speak more precisely, the Portuguese businessman promises 25 billion USD of profit soon. The merged company is planning to make 8 million cars a year, pushing the revenue to 165 billion USD a year.
Don’t forget that the new player inherits the 15 most famous car brands. Just listen: Citroen, Peugeot, Opel, DS, Vauxhall, Abarth, Fiat, Alfa Romeo, Maserati, Lancia, Chrysler, Jeep, Dodge, SRT, and Ram. This is no small voice from over the road – this is a bursting symphony, a victory march, a real hymn.
Summing up
Fiat Chrysler Automobiles and Group PSA united into Stellantis that leaped into the top-5 world’s largest car concerns from the start. The stocks of the new entity, having just appeared in the exchanges of Milan, Paris, and New York, agitated investors, growing by over 8.5% a day on average.
Do you think the newcomer can become a real rival to Toyota Motor, Tesla, and Volkswagen AG?
