Fiat Chrysler Automobiles (FCA) and Groupe PSA are closing in on the big merger that’s expected to happen this year. But once the joint company, which will be called Stellantis, is formally introduced, it could also mean the end of the iconic Chrysler brand.
Chrysler could get the axe
According to a report by the Associated Press, the “low-performing Chrysler brand might get the axe” once Carlos Tavares—the current head of the PSA Group—takes charge. Tavares, who once ran Nissan’s operations in North America, is known to have “little tolerance” for non-performing vehicles or ventures.
The report also said that the companies are working on consolidating vehicle platforms to be more cost-efficient in terms of engineering and manufacturing, and this could result in job cuts in Italy, Germany, and Michigan. Tavares is expected to target consolidation in Europe given that this is where Fiat vehicles overlap extensively with PSA’s lineup.
FCA-PSA merger not yet official
Neither FCA nor PSA has commented on the matter, however, so nothing is official as of this writing. That said, it might not be long until Stellantis—set to become the world’s fourth-largest carmaker—is officially established, so we’re expecting more updates soon enough. We’ll bring you more details as we have them.