Stellantis is official, hits the ground running with eyes on China

Carlos Tavares

Stellantis, the carmaker forged from the merger of FCA and PSA, is "very confident" of delivering its planned $6.1 billion in synergies, including 80% within four years, its chief executive said on Tuesday.

CEO Carlos Tavares's comments came as Stellantis shares surged more than 10% on its New York debut, mirroring strong increases in its French and Italian listed stock since their launches on Monday.

In the run-up to their merger, PSA and FCA pledged not to close plants, and Tavares said Stellantis' ability to spread costs to invest in new vehicles would act as a "shield" against job cuts.

"Our commitment on this merger is that we will not shut down plants," he said. "We want to keep the brands."

When asked about the future of the group's Ellesmere Port plant in Britain and whether Stellantis would invest in electric vehicles there following the conclusion of a Brexit trade deal, Tavares said: "We are now reviewing those different scenarios."

"We are now deciding where we are going to put those investments," he said, not committing to any roadmap for producing EVs in either continental Europe or a post-Brexit Britain, citing an uncertain regulatory future. "Both could work."