Chrysler’s Transformation into Stellantis: A Game-Changing Merger in the US Automobile Industry

Chrysler’s Transformation into Stellantis: A Game-Changing Merger in the US Automobile IndustryChrysler's Transformation into Stellantis: A Game-Changing Merger in the US Automobile Industry

Chrysler’s Transformation into Stellantis: A Game-Changing Merger in the US Automobile Industry

Examining the Impact of the Fiat Chrysler and PSA Group Merger on the American Automotive Landscape

Chrysler, the renowned American auto company, has undergone a significant transformation and is now a part of the multinational conglomerate Stellantis NV (STLA) based in the Netherlands. This transformation occurred through the official merger of Fiat Chrysler Automobiles (FCA) with PSA Group, the owner of the well-known Peugeot brand, on January 16, 2021. With the completion of this merger, Stellantis has emerged as the fourth-largest automobile manufacturer globally, encompassing an impressive portfolio of 15 vehicle brands.

Brands Under the Stellantis Umbrella

The merger between Fiat Chrysler and PSA Group has resulted in a consolidation of various automotive brands. Before the merger, Fiat Chrysler’s vehicle lineup included Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Ram, Alfa Romeo, Abarth, Lancia, and Maserati. Meanwhile, PSA Group’s portfolio encompassed Citroen, DS, Opel, Peugeot, and Vauxhall. Although it is yet uncertain which of these brands will continue under the Stellantis umbrella, changes can be expected as a result of the merger.

Chrysler’s Historical Journey

Chrysler, founded in 1925 by Walter P. Chrysler in Detroit, had a turbulent history. The company initially thrived as one of the prominent Big Three U.S. automakers until facing financial challenges in the late 1970s. In 1979, Chrysler required a government bailout amounting to $1.5 billion to avert bankruptcy. After overcoming this setback, the company encountered another major hurdle during the 2008-2009 financial crisis, which led to its second bankruptcy. Chrysler received a loan from the U.S. government as part of a bailout, which it successfully repaid in 2011. Subsequently, Fiat acquired the U.S. Treasury’s shares, leading to the creation of the Fiat Chrysler Automobiles (FCA) partnership.

Stellantis Subsidiaries

As a result of the merger, Stellantis gained ownership of several subsidiaries that have had longstanding partnerships with Fiat or Chrysler.

  • Comau: Comau is a specialist in manufacturing production systems, serving various industries including automotive, aerospace, and alternative energy. With divisions dedicated to body assembly, powertrain systems, and robotics, Comau has been expanding its robotic technology across multiple sectors beyond automotive.
  • Teksid: Teksid was established in 1917 as a foundry for producing engine blocks for Fiat. Today, it manufactures automotive components from iron and aluminum for FCA and other global automobile companies. Teksid’s expertise lies in engine blocks, cylinder heads, transmissions, and suspension assemblies.
  • Mopar: Mopar is the original equipment manufacturer and supplier of parts for Chrysler, Dodge, Jeep, and Ram vehicles. With an extensive range of parts, including high-performance options, Mopar is also the U.S. distributor for Fiat parts. The term “Mopar” is often used to refer to vehicles designed and manufactured by Chrysler or its divisions since 1920.
  • Maserati: Maserati, a renowned Italian luxury car manufacturer, has had a tumultuous financial history. Fiat has been the majority owner of Maserati since 1989 and gained full control in 1993. Through partnerships with Ferrari and Alfa Romeo, Fiat transformed Maserati into a seller of high-performance luxury sedans.


With the completion of the merger between Fiat Chrysler Automobiles and PSA Group, Chrysler has evolved into an integral part of the multinational conglomerate Stellantis. This significant transformation has positioned Stellantis as a global automotive powerhouse, ranking among the top four automobile manufacturers worldwide. As the new entity takes shape, only time will tell how the merger’s impact unfolds on the American automotive landscape and the future of iconic brands like Chrysler within the Stellantis portfolio.







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