Fiat Chrysler is going through a name change. This car company will be merging with PSA, and due to this, they will be renamed Stellantis.
As reported by Wall Street Journal on July 15th, 2020 by Nora Naughton.
The new name has its roots in the Latin word “stello,” meaning “to brighten with stars,” the companies said Wednesday. It is cast in a font reminiscent of the futuristic style used by Tesla Inc. in its corporate logo.
The change marks the first time that Fiat and Chrysler won’t appear in the parent company name, but they will live on as badges for individual brands. Likewise, brand names such as Jeep and Peugeot will continue.
“The stakes are high here,” said Marcus Collins, a marketing professor at the University of Michigan. “A new name presents a clean slate, but you only have so many chances to reinvent yourself.”
The two auto makers agreed to merge last year in a $50 billion deal intended to help them leverage their global scale and advance new technologies for meeting tougher environmental regulations. As the cost of doing business continues to grow for global car companies, collaboration among traditional rivals has become a more attractive option.
Despite the fallout from the Covid-19 pandemic, both Fiat Chrysler and PSA have said they are pressing ahead with the merger deal and expect it to close early next year.
Chrysler, named after Walter Chrysler who founded the company in 1925, has endured as a corporate name for nearly a century and had survived previous mergers, including the failed DaimlerChrysler tie-up in the early 2000s.
Italy’s Fiat traces its roots back to 1899 when the Italian car company was founded by Giovanni Agnelli. PSA Group, which is based in France, is the parent company for the makers of Peugeot, Citroën and other automotive brands.
The two companies became Fiat Chrysler Automobiles through a 2014 tie-up executed by then-Fiat CEO Sergio Marchionne, who took control of Chrysler out of bankruptcy. Mr. Marchionne died in 2018.
Company executives have said the two sides will have equal share in the newly formed company, and the deal will result in annual cost savings of about €3.7 billion ($4.22 billion).
Combining these two companies would create one of the world’s largest auto companies. This merger would take place early next year. Would renaming Fiat Chrysler to Stellantis be a smart decision?
Additional Car Branding Resources
Car Brand Naming is a Tricky Category (Ideas BIG)
How Do Car Companies Name Their Cars? (Huff Post)
When Should A Company Rebrand? (Ideas BIG)