Stellantis CEO says 4th largest carmaker to be disruptive

The Stellantis sign is seen outside the Chrysler Technology Center, Tuesday, Jan. 19, 2021, in Auburn Hills, Mich. Carlos Tavares, the CEO of Stellantis, the carmaker created from the merger of PSA Peugeot and Fiat Chrysler, said Tuesday that the tie-up will help preserve jobs, factories and the 14 storied brands as billions in annual savings are achieved. (AP Photo/Carlos Osorio)
The Stellantis sign is seen outside the Chrysler Technology Center, Tuesday, Jan. 19, 2021, in Auburn Hills, Mich. Carlos Tavares, the CEO of Stellantis, the carmaker created from the merger of PSA Peugeot and Fiat Chrysler, said Tuesday that the tie-up will help preserve jobs, factories and the 14 storied brands as billions in annual savings are achieved. (AP Photo/Carlos Osorio) (Copyright 2021 The Associated Press. All rights reserved.)

MILAN – Stellantis CEO Carlos Tavares on Wednesday said the new car company formed from the merger of Fiat Chrysler Automobiles and PSA Peugeot would be a “disruptive” force in the industry, and that both sides would provide technologies to achieve the promised 5 billion euros ($6 billion) in cost savings each year.

The Italian-American carmaker and the French mass-market automotive company completed their merger on Jan. 16, creating Stellantis, the world’s fourth-largest carmaker, despite a pandemic year that saw profits plunge.

“Stellantis is not born from a crisis,’’ Tavares told a conference call after fourth-quarter earnings were released. “This is not only about implementing synergies, it will also be a disruptive plan. We do not accept to be cornered as a legacy carmaker.”

Tavares cited the recent investment in the Archer aviation company to develop vertical flying devices for urban mobility as an example of how Stellantis intended to be a disruptive force.

“We believe that this strategic investment is going to be highly convergent with the technology we need for the automobile world,’’ he said, citing energy management, lightweight batteries and quick-charging technologies.

“We are not going to let ourselves be cornered as dinosaurs, that is clear,’’ Tavares said.

Tavares also indicated that both FCA and PSA would contribute technologies that would help the company get rid of duplications and save money. He cited bigger engines from FCA, and smaller ones from Fiat, and said that PSA has been adept at achieving efficiencies through sharing components and platforms, while FCA has faster processes.

“So if I combine both, I should go fast and I should be very efficient at the end of the day,” the CEO said.