In any industry, there are always mergers and acquisitions taking place. With this tactic we see companies grow, while we see others disappear. However, the ones that could benefit the most, or maybe even lose, are the consumers of these companies. Companies need to keep them in mind because without them, a merger or acquisition could be useless.
The latest merger has come from the automotive industry; with Italian-American automaker Fiat Chrysler and France-based PSA Groupe merging to create Stellantis, making it the world’s fourth-largest automotive group. While most mergers and acquisitions happen due to a financial crisis, that is not the case here. Groupe PSA Chairman stated; “This is not a merger in crisis mode, this is a merger of two highly mature companies who understand that coming together is the best option.” The overall goal of the merger is to further increase the financial value of both companies.
With this in mind, we could start seeing other automotive companies coming together and merging with their competitors. As we have mentioned before the CX economy does not wait for anyone, no matter how big and effective your company is. During the age of technology, these auto companies will need to find new ways to be one step ahead of competition and not be left behind.
While Stellantis maybe the best thing for both Chrysler and PSA, it will be interesting to see how this merger will affect loyal consumers of each brand and new consumers. And could we potentially see major auto brands like Tesla start to merge with other companies? Only time will tell.
Itzell Ramirez-Lopez is a marketing intern for Worthix. She is currently a fourth-year at the University of Georgia pursuing a bachelor’s degree in Marketing, with an emphasis in Digital Marketing. She is also pursuing a certification in Legal Studies. She will be graduating in May 2021.