Fiat Chrysler Automobiles and PSA Group shareholders, in separate meetings on Monday, voted to approve a long-anticipated merger.  The new company, to be called Stellantis, will become the 4th-largest automaker, with capacity to produce 8.7 million cars a year, behind Volkswagen, Toyota and Renault-Nissan. The merger joins the FCA brands of Fiat, Dodge, Chrysler, Jeep, Ram, Alfa Romeo, Maserati, and Lancia with the PSA Group's Peugeot, Citroen, Vauxhall, Opel and DS Automobiles, and opens the door for some of those brands to re-enter the U.S. market. The name Stellantis is rooted in the Latin “stello” meaning “to brighten with stars". The logo is the visual representation of the spirit of optimism, energy and renewal of a diverse and innovative automotive company determined to be one of the new leaders in the next era of sustainable mobility.

“Together we will be stronger than individually,″ PSA Peugeot CEO Carlos Tavares told a virtual gathering of shareholders. “The two companies are in good health. These two companies have strong positions in their markets.” 

Fiat Chrysler Chairman John Elkann, heir to Fiat's Agnelli family and Fiat Chrysler’s biggest shareholder, added: “We are living through a profound era of change in our industry. We believe that the coming decade will redefine mobility as we know it.”

Tavares will run the new company, while Elkann stays on as chairman. Fiat Chrysler CEO Mike Manley will head North American operations. Stock shares in the new company should begin trading before the end of this month, and current FCA shareholders can expect to receive a special payout of approximnately $2.26 per common share after the merger closes.

The merger was built on the promise of crucial cost-savings as the industry moves toward investment-heavy electrification and autonomous technologies. Manley said about 40% of the savings will come from combining platforms, the underpinnings of vehicles, and engines and transmissions. Another 35% of the savings will come from joint purchasing, especially with electric and high tech components, he said, while the rest will come from sales, general and administrative cost savings, along with  optimizing logistics, supply chain, quality and parts sales.