Chrysler Is Now Part of Stellantis

Chrysler Is Now Part of Stellantis

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Eric Whiteside
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Eric Whiteside is the creator of the Capitalist Fool blog. He has 40+ years of experience in trading, investing, and finance.
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Updated September 16, 2023
Reviewed by Charles Potters
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Pete Rathburn
Pete Rathburn
Fact checked by Pete Rathburn
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Pete Rathburn is a copy editor and fact-checker with expertise in economics and personal finance and over twenty years of experience in the classroom.

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The auto company that some Americans may still refer to as Chrysler became part of a conglomerate called Stellantis NV (STLA), based in the Netherlands, on Jan. 16, 2021. Fiat Chrysler Automobiles ("FCA") officially merged with PSA Group, owner of the Peugeot automobile brand, at that time. Plans for the merger were announced in 2019 but were delayed due to the COVID-19 pandemic.

The combination makes Stellantis the world's fourth-largest automobile maker by volume with 14 vehicle brands under one roof as of 2023. Fiat Chrysler vehicle brands include Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Ram, Alfa Romeo, Abarth, Lancia, and Maserati. PSA Group brands include Citroen, DS, Opel, Peugeot, and Vauxhall.

Key Takeaways

  • Chrysler suffered some tough financial events before it was purchased by Fiat.
  • The Chrysler brand was part of Fiat Chrysler, which merged with the parent company of the Peugeot brand in 2021 to create a new company, Stellantis.
  • Brands under the Fiat Chrysler umbrella include Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Ram, Alfa Romeo, Abarth, Lancia, and Maserati.

Chrysler's Long Road

Chrysler was created in 1925 in Detroit by Walter P. Chrysler. The company mostly thrived as the third-ranked of the Big Three U.S. automakers until the late 1970s when it came close to bankruptcy. It required a government bailout for the then-impressive sum of $1.5 billion.

The company regained its footing but again entered bankruptcy in 2009 in the midst of the financial crisis of 2008-2009. Chrysler received another government bailout, this time in the form of a loan from the U.S. government that it repaid in 2011. Fiat then purchased the U.S. Treasury's shares of Chrysler and Chrysler entered into a partnership with Fiat, becoming Fiat Chrysler Automobiles (FCA).

Stellantis Subsidiaries

The merger of Fiat Chrysler and the PSA Group gave Stellantis ownership of a number of subsidiaries with a long history of doing business with Fiat or Chrysler. Comau, Teksid, Mopar, and Maserati are subsidiaries under the Stellantis umbrella.

Comau

Comau specializes in manufacturing production systems. The company has three main divisions: body assembly, powertrain systems, and robotics. Comau works with aerospace and alternative energy companies in addition to the automotive work it does for FCA,. It's expanded its robotic technology systems into all areas of manufacturing, including food and beverage, electronics, consumer goods, and logistics.

Teksid

Teksid SpA started out in 1917 as a foundry for making engine blocks for Fiat. Teksid makes automotive components from iron and aluminum for FCA units and other automobile companies worldwide. Its strength is in engine blocks, cylinder heads, transmissions, and suspension assemblies.

Mopar

Mopar is the original equipment manufacturer and supplier of parts for the Chrysler, Dodge, Jeep, and Ram vehicle lines. The company has a full line of parts for repairs plus a catalog of high-performance parts. It's also the U.S. distributor for Fiat parts.

Mopar is frequently used as a term to describe any car designed and manufactured by Chrysler or its divisions since 1920.

General Motors, Ford, and Chrysler were the original "Big Three" U.S. automakers.

Maserati

Maserati SpA is a well-known Italian maker of exotic sports cars and sedans but it has a shaky financial history. Fiat has been an owner since 1989 and has had full control since 1993. Fiat has used partnerships with Ferrari and Alfa Romeo to evolve Maserati into a seller of super-luxury high-performance sedans.

Stellantis Today

Stellantis announced a $12.1 billion net profit for the first half of 2023 on July 26. That's 37% more than in 2022 so it can rightfully be said that Stellantis is thriving. But Stellantis also began negotiating for a new contract with United Auto Workers (UAW) in July 2023, along with General Motors and Ford, and that effort has not been successful.

United Auto Workers (UAW) went on strike against the Big Three automakers, including Stellantis, when a new contract was not agreed upon by 11:59 p.m. on Sept. 14, 2023.

Stellantis CEO Carlos Tavares said at the time of the July 2023 announcement, "Our outstanding performance in the first half of this year supports our long-term sustainability...We are well-positioned for the remainder of 2023 and beyond.”

Of course, it remains to be seen how the UAW strike will affect his optimism.

Is FCA Now Called Stellantis?

Yes. Fiat Chrysler Automobiles (FCA) completed its merger with Peugeot S.A. ("Groupe PSA") on Jan. 16, 2021. The merger of the two companies resulted in the formation of Stellantis, a conglomerate based in the Netherlands. Stellantis trades on the New York Stock Exchange (NYSE) under the ticker symbol "STLA."

How Big Was the FCA Merger With the PSA Group?

The merger resulted in the formation of a new company, Stellantis, which is the fourth-largest global original equipment manufacturer (OEM) by volume. The estimated annual net revenue of the combined companies was 170 billion euros at the time of the merger announcement in 2019.

Why Did Fiat Chrysler Merge With the PSA Group?

The merger resulted in a diversified company with high margins and approximately 3.7 billion euros in estimated annual synergies. The combination of the two companies created a portfolio of iconic car brands covering a wide range of market segments that are attractive to car buyers. Management has pointed out that the company can use its combined resources to develop new technologies in autonomous driving and new energy vehicles.

The Bottom Line

Chrysler is part of the Stellantis NV conglomerate as of 2023. Stellantis is the result of a merger between Fiat Chrysler and PSA Group, forming one of the largest automakers in the world. Stellantis owns several subsidiaries in addition to Fiat and Chrysler, including Comau, Teksid, Mopar and Maserati.

But the 2023 UAW strike may well affect all automakers in one way or another, depending on how long it goes on before contract resolution is reached.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. Stellantis. "Our Brands."

  2. Stellantis. "Groupe PSA and FCA Agree to Merge," Page 6.

  3. Stellantis. "The Merger of FCA and Groupe PSA Has Been Completed."

  4. Detroit Historical Society. "Chrysler Corporation."

  5. Teksid. "History."

  6. Stellantis. "First Half 2023 Results."

  7. NPR. "The UAW Launches a Historic Strike Against All Big 3 Automakers."

  8. Stellantis. "Groupe PSA and FCA Agree to Merge," Page 1.

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