PSA, FCA shareholders voted their approval for Stellantis

99% of PSA (Peugeot) shareholder votes were for approval of the deal with FCA; 99% FCA shareholders are voted for the merger later in the same day.

Existing FCA shareholders will lose their existing double-voting rights, but otherwise, the deal is likely to be good for them. Peugeot has been able to completely stop gasoline engine development, saving a good deal of money; Fiat Chrysler engines will presumably replace Peugeot’s own eventually, while Peugeot platforms are expected to replace some of Fiat Chrysler’s own.

Peugeot has done well in the mainstream markets where Fiat has had issues, while Fiat has been strong in numerous niches which have limited competition; a possible edge in hybrid and PHEV technologies; and a major presence in North America, where Peugeot has no reach.

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With the two companies together, economies of scale which have eluded Fiat Chrysler (due to their spread over niches) and Peugeot (lacking North American sales) are likely to come together without as many product compromises. However, the issue of insufficient capital to compete on all fronts may still be an issue.

The Agnelli family will remain the top investor, with around 14% of shares and a family member, John Elkann, staying on as chair of the board; Peugeot’s CEO, Carlos Tavares, will run the entire organization, with FCA’s CEO, Mike Manley, running North America.

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