The Stellantis Merger: Platform Theory Analysis of FCA and PSA

This report analyzes the merger between Fiat Chrysler Automobiles (FCA) and PSA Group, resulting in the formation of Stellantis, one of the world's largest car manufacturers. The report utilizes platform theory, specifically platform product theory and platform technology theory, to examine the rationale behind the merger. It explores how the merger allows the combined entity to leverage shared technologies and components, reduce costs, and create products with higher combined value, leading to increased profitability and competitive advantage in the highly competitive automotive industry. The report also discusses the challenges faced by both companies before the merger, including the need for investment in CASE (Connected, Autonomous, Shared, Electric) technologies, and how the merger provides a stronger position to compete with industry rivals. The report further delves into the strategic benefits of the merger, such as geographical expansion and the ability to address excess production capacity, ultimately aiming to understand the strategic advantages and implications for the merged entity in the evolving automotive landscape.