In nomen omen, or, to translate it into the vernacular, destiny lies in the name. This is what the leaders of the most important car aggregation in Mediterranean Europe, i.e. Fiat and Peugeot, are hoping for, who have asked for the blessing of their ancestors to baptise, well in advance of the date of birth, the company that will be born from the FCA/PSA merger in the next spring. The name, developed by Publicis but with “the active involvement of the senior management of the two companies” echoes the common Latin origin: STARS, from the Latin verb “stello” which means “to be illuminated by stars”. As it is hoped it will be the sky in which the brands of the two houses will align, expressing "strong corporate cultures which, by coming together, are about to create one of the new leaders in the next era of mobility". In short, a new brand that will act as a hat for names destined to still represent the identity of the many tribes involved in the operation, from Alfa Romeo to Maserati rather than Citroen or the Teutonic Opel, the "barbarian" of the moment.
The news has significant symbolic value in a particularly delicate moment for the auto industry, stressed more than any other sector by the consequences of the pandemic but also by the impressive acceleration of the growth on the Tesla Stock Exchange, which alone has come to be worth more than all the French and German brands as well as the Detroit Big Three. The decision to anticipate the release of the name serves to silence the rumors of difficulty in the merger between FCA and PSA, fueled by the situation of markets after the Covid-19. Many, even among analysts, have questioned the terms of the operation studied before the pandemic. The signal, on the contrary, is that governs the joint system of the operation. In the hope of not having to revise the terms of the deal which for now remain "carved in stone".
Beyond the official rhetoric, however, it is worth considering the state of the economy. The car registrations in June in the EU-EFTA area plus Great Britain they suffered a contraction of 24,1%, compared to a year before, falling to 1.131.843 units according to data provided by Acea, the European association of car manufacturers. The downward trend has slowed compared to May but, despite the opening of dealerships after the lockdown, consumer demand has not yet fully recovered. In particular, the FCA group recorded a contraction of -28,2% to 64.927, with a market share of 5,7% from 6,4% in June 2019.
France is the exception in which a timid + 1,2% peeped out, the first effect of the measures approved by Emmanuel Macron which affect both traditional and electric cars. This widens the gap between the French company and the European component of Fiat Chrysler, whose plants are largely underused. It won't be easy for Carlos Tavares, next number one, respect the commitment to keep all FCA's Italian plants open, a necessary condition for being entitled to a loan of 6,3 billion guaranteed by Sace.
However, Tavares himself recently confirmed that he is a "man of honour" by announcing the shift of production of the DS4 Citroen from Sochaux, where it was initially planned to Russelsheim, as part of the promise made in 2018 to keep Opel's five production sites in Germany in operation. The most interesting aspect is that the news has not aroused protests in the French union. In fact, Tavares has assigned the new platform to Sochaux which, in 2-3 years, will be used to produce the new generation of Peugeot 3008, both in thermal, electric or hybrid versions. Only one platform instead of the current 2-3, with great savings through the first integration of products. Without any concessions to geopolitics. It is the rule that could also be followed in the Bel Paese, hoping that it will be enough to guarantee the exploitation of the plants.
Finally, there is a novelty which, if used in Italian offices and factories, would have the flavor of a small revolution. Peugeot announced to the unions on Thursday the intention to extend the organization of remote work, appreciated by the workers, as emerges from a survey among the 40 employees of the group in France. We are moving towards the goal declared by the management of 3,5 days of remote work per week plus a day and a half in the office according to experiences prior to the pandemic: in 2019, more than 18 Peugeot employees around the world made use of to telework according to the project called "New era of agility". English also dominates under the skies of Stellantis.
Ugo Bertone's articles are always silly. He's probably still a novice, but it's time to wake up.