The automotive landscape is constantly evolving, with mergers and acquisitions reshaping the industry. One significant shift was the creation of Stellantis, a global automotive giant that now includes the iconic American brand, Chrysler. Many people still wonder, why is Chrysler part of Stellantis? To understand this, we need to delve into the history of Chrysler, its journey to becoming part of Fiat Chrysler Automobiles (FCA), and the subsequent mega-merger that formed Stellantis.
Chrysler’s Journey Before Stellantis
Founded in 1925 by Walter P. Chrysler in Detroit, the Chrysler Corporation quickly established itself as one of the “Big Three” automakers in the United States. For decades, Chrysler thrived, becoming synonymous with American automotive innovation and design. However, the road wasn’t always smooth.
From the late 1970s, Chrysler faced significant financial headwinds, even nearing bankruptcy. In a pivotal moment, the company received a substantial government bailout of $1.5 billion to stay afloat. Chrysler managed to recover, but the challenges weren’t over. The global financial crisis of 2008-2009 plunged Chrysler into bankruptcy once again. Another government intervention, this time a loan, was necessary to keep the automaker operational.
/GettyImages-140958974-5c68a5a7c9e77c00015d0007.jpg)
It was during this period of turmoil that a major turning point occurred. In 2011, Fiat, the Italian automotive giant, stepped in and purchased the U.S. Treasury’s stake in Chrysler. This marked the beginning of a partnership that would eventually lead to the formation of Fiat Chrysler Automobiles (FCA). Chrysler officially became part of FCA, joining a portfolio of brands that included Fiat, Dodge, Jeep, and Ram, among others.
The Birth of Stellantis: A Merger of Equals
Fast forward to 2019, FCA announced its plans to merge with PSA Group, the French automotive manufacturer behind brands like Peugeot, Citroen, and Opel. This merger was not just a simple acquisition; it was envisioned as a merger of equals, bringing together two major forces in the global automotive industry. Despite delays due to the COVID-19 pandemic, the merger was finalized on January 16, 2021. This landmark event gave birth to Stellantis N.V., a new corporate entity based in the Netherlands.
The combination of FCA and PSA Group created the world’s fourth-largest automaker by volume. Stellantis now boasts an impressive portfolio of 14 vehicle brands and two mobility brands. From the American heritage of Chrysler, Dodge, Jeep, and Ram to the European flair of Peugeot, Citroen, Opel, and Fiat, Stellantis encompasses a diverse range of automotive offerings.
/1211147889-e1449042975294-5c68a7d1c9e77c00015d001d.jpeg)
So, to directly answer the question, Chrysler is part of Stellantis because Chrysler was part of Fiat Chrysler Automobiles (FCA), which merged with PSA Group to create Stellantis. It’s a story of evolution, strategic partnerships, and the ever-changing dynamics of the global automotive industry.
Stellantis Subsidiaries and Their Roles
The Stellantis umbrella extends beyond its well-known vehicle brands. The conglomerate also owns several subsidiaries that play crucial roles in its operations and the broader automotive ecosystem. Some key subsidiaries inherited from FCA include:
Comau
Comau specializes in advanced manufacturing systems and automation. Originally focused on automotive production, Comau has expanded its expertise into various sectors, including aerospace, logistics, and renewable energy. Their offerings range from body assembly and powertrain systems to robotics and digital manufacturing solutions. While Stellantis remains a minority shareholder, a majority stake in Comau was acquired by One Equity Partners in 2024, marking a strategic shift for this subsidiary.
Teksid
With a history dating back to 1917 as a foundry for Fiat, Teksid is a major manufacturer of automotive components. Teksid’s core competency lies in producing iron and aluminum components, including engine blocks, cylinder heads, transmissions, and suspension assemblies. They supply these critical parts not only to Stellantis brands but also to other automakers worldwide.
Mopar
Mopar serves as the parts, service, and customer care division for Stellantis’ North American brands – Chrysler, Dodge, Jeep, Ram, and Fiat. As the Original Equipment Manufacturer (OEM) parts supplier, Mopar provides a comprehensive range of parts for vehicle maintenance, repair, and customization. The term “Mopar” is also often used informally to refer to vehicles manufactured by Chrysler and its divisions.
Maserati
Maserati, the iconic Italian luxury car manufacturer, is also part of the Stellantis family. Fiat’s ownership of Maserati began in 1989, with full control established in 1993. Under Stellantis, Maserati continues to produce high-performance luxury sedans and sports cars, leveraging partnerships with brands like Ferrari and Alfa Romeo to maintain its prestigious position in the automotive world.
/GettyImages-1200481983-5c68a86bc9e77c00015d002c.jpg)
Stellantis in the Current Automotive Landscape
Stellantis operates in a dynamic and challenging automotive market. In the first half of 2024, the company announced a net profit of over $6 billion. While this is a substantial figure, it represents a decrease compared to the same period in 2023, attributed to factors like reduced sales volume, unfavorable exchange rates, and restructuring costs.
Like other major automakers, Stellantis also faces labor relations challenges. In 2023, the United Auto Workers (UAW) union conducted a historic strike targeting the “Big Three” automakers, including Stellantis, General Motors, and Ford. This unprecedented strike, lasting approximately six weeks, resulted in new labor contracts with significant wage increases for workers.
Frequently Asked Questions About Stellantis and Chrysler
To further clarify the relationship between Chrysler and Stellantis, let’s address some common questions:
Is FCA Now Called Stellantis?
Yes, Fiat Chrysler Automobiles (FCA) no longer exists as a separate entity. Following the merger with Peugeot S.A. (PSA Group), the combined company is now officially named Stellantis. Stellantis began trading on the New York Stock Exchange (NYSE) under the ticker symbol “STLA” in January 2021.
How Significant Was the FCA Merger With PSA Group?
The merger that created Stellantis was a massive undertaking, resulting in the formation of the world’s fourth-largest automaker in terms of volume. At the time of the merger announcement in 2019, the combined annual revenue of FCA and PSA Group was estimated at 170 billion euros, highlighting the immense scale of this automotive powerhouse.
What Were the Motivations Behind the Fiat Chrysler and PSA Group Merger?
The merger was driven by several strategic objectives. Primarily, it aimed to create a more diversified and financially robust company. The combined entity was projected to achieve approximately 3.7 billion euros in annual synergies, primarily through cost savings and resource optimization. Furthermore, the merger allowed Stellantis to assemble a comprehensive portfolio of iconic car brands spanning various market segments, appealing to a wider range of customers. The increased resources also enable Stellantis to accelerate the development of new technologies, particularly in the areas of autonomous driving and electric vehicles.
The Bottom Line: Chrysler’s Place in the Stellantis World
Chrysler’s inclusion in Stellantis is a result of a series of transformative events in the automotive industry. From its early success as a pillar of American manufacturing to navigating financial crises and ultimately becoming part of Fiat Chrysler Automobiles, Chrysler’s journey culminated in its place within the global conglomerate Stellantis. As part of Stellantis, Chrysler remains an important brand within a vast portfolio, contributing to the legacy and future direction of one of the world’s largest automakers. Stellantis, with its diverse brand portfolio and strategic subsidiaries, is poised to navigate the evolving automotive landscape and shape the future of mobility.
