The Fiat Chrysler-PSA mega-merger may give rise to a carmaking star

FIAT CHRYSLER AUTOMOBILESFCAPSAPSA (), an Italian-American carmaker, and Group, the French owner of Citroën and Peugeot, do not like to dwell on their shared past. When acquired Chrysler Europe in 1978 for a nominal $1 it picked up some struggling British and French marques and a heap of debt. That tie-up crashed a few years later with the demise of Talbot, the brand created from these motoring scraps. On January 4th shareholders of both firms voted to give it another go, acceding to a mega-merger agreed in 2019. Hopes seem higher this time. The name of the combined firm, Stellantis, is derived from the Latin for “brightens with stars”.Stardust is sadly lacking from an industry that, along with many others, has taken a beating in the pandemic. But the creation of the world’s fifth-largest carmaker by vehicles produced (see chart) is well set to deal with the effects of covid-19—and to navigate the other difficulties facing the automotive business.