PSA has two modern platforms, CMP and EMP2, that can take gasoline, diesel, plug-in hybrid (EMP2) and full-electric (CMP) drivetrains. It has boosted profits by quickly adding hundreds of thousands of units of Opels and Vauxhalls on those platforms, first with the new Corsa small car on the CMP architecture, and next with the Astra compact on EMP2.
The next generation of small FCA vehicles will be on PSA platforms, adding even more profitable volume. Coming next: the e-VMP architecture, a modified EMP2 platform that is designed specifically for battery-electric vehicles.
The merger will also bring other benefits to the soon-to-be-former PSA: Fresh thinking from FCA engineers, designers and managers; improved purchasing leverage; and better returns on capital expenditures and R&D spending.
The divestiture of PSA's stake in supplier Faurecia, which it controlled, will be largely neutral. Faurecia's finances are in decent shape after recovering from the 2008-09 global financial crisis, and it did not enjoy special status with PSA as a customer.
In an interview with Automotive News Europe, Tavares emphasized the role of new ideas at Stellantis.
"The fact that we are bringing the two companies together may also be an opportunity to be challenged on the things that we could even do better, and this is true for the Americas as much as for Europe," he said. "PSA has been very successful in Europe, but that does not mean that we are doing everything very well."
A historical footnote: The creation of Stellantis will mark the disappearance of Peugeot as an automotive group (“PSA” stands for Peugeot S.A.) after 45 years.
PSA was created in 1976 after Peugeot merged with Citroen, and added Chrysler Europe in 1978. It added control of Faurecia in 1998 after its in-house supply brand, ECIA, took over the supplier Bertrand Faure (creating Faurecia). The acquisition of GM's European operations (Opel/Vauxhall) in 2017 completed the group.