Fiat Chrysler and Peugeot shareholders vote for merger

Shareholders of Fiat Chrysler and Peugeot's parent group have voted resoundingly for a merger of the companies to create the world's fourth biggest carmaker after two years of talks.

The combined group will gather brands such as Peugeot, Citroen and Vauxhall from Groupe PSA under one roof with Fiat, Jeep and Chrysler. A total of 14 brands will be managed by the $58bn company, called Stellantis.

More than 99% of shareholder of each company voted for the tie-up online. Merging the groups will bring the scale needed to catch up in developing electric and self-driving vehicles as well as yielding billions of dollars in cost cuts, company bosses have said.

Stellantis will be forged with the car industry in turmoil created by rapid technological change, environmental pressures and the effects of the Covid-19 pandemic. The company may seek to scrap some of its weaker marques which include Fiat and Chrysler.

"Stellantis will be a sort of conglomerate of brands, some great and some not so good and most very regional, Jefferies analyst Philippe Houchois told NBC. "The merger will be a good opportunity for a reset.”

Fiat Chrysler has been searching for a merger partner for a decade and started before Fiat agreed to save Chrysler during the financial crisis. A deal with Renault fell apart, prompting Fiat Chrysler boss Mike Manley to talk to PSA.

Fiat Chrysler Chairman John Elkann, heir to Fiat's founding family, will keep his job at the merged company as will PSA Chief Executive Carlos Tavares. Manley will head the company's Americas operations.

The deal will complete on 16 January and shares of Stellantis will start trading in Paris and Milan on 18 January and in New York on 19 January.