If you start reading and hearing this new word in Pakistan because a number of media outlets have begun reporting it, and you are wondering what is it? “STELLANTIS”. The word Stellantis comes from the Latin word STELLO, and it means “to brighten with stars.” As per those reports, Lucky Motors has signed a new deal with the world’s fourth-largest carmaker; well, there is a little twist in it. Let us tell you about it.
A Global Merger:
In early January 2021, a merger happened between FCA Chrysler with PSA Peugeot. FCA brands include Fiat, Lancia, Chrysler, Dodge, Ram, Jeep, Alfa Romeo and Maserati. Meanwhile, PSA brands include Peugeot, Citroen, Opel, Vauxhall, and DS Automobiles.
The merger gives greater access to American brands in Europe and European brands into the North American market. This will also help joint venture brands to expand in new markets. The merger will also help develop joint products, sharing engines, platform and other technologies. There is also a plan to cut down on the low selling model under a new partnership.
The “STELLANTIS” becomes the 4th largest car makers/ group in the world—[VW Group, Toyota, Nissan-Renault are top 3 ].
Why it Matters?
KIA Lucky Motors Pakistan Limited name changed to “Lucky Motors Corporation Limited”, and the reason is;
If you remember, Lucky group also has a license to assemble Peugeot vehicles in CKD for the Pakistani market. So, Lucky will use the same assembly facility with a dedicated separate assembly line for making KIA brand vehicles as well as Peugeot.
Lucky motors is not bound to assemble KIA vehicles ONLY in Pakistan as per their working operational venture with KIA.
KIA and Peugeot brands will be under the “Lucky Motors “umbrella. Lucky Motors planned to invest around $15 Million in putting up a dedicated assembly line for Peugeot at their Bin Qasim facility, the same location where they are assembling KIA vehicles.
From PSA to Stellantis:
When Lucky Motors signed the venture with Peugeot in June 2019 for a local product line, Peugeot PSA was a stand-alone company. As Peugeot become part of STELLANTIS, a new contract terms have to be signed to bring the Peugeot brand to Pakistan. It is a legal requirement to re-sign the new contracts and operational joint ventures when the ownership changes.
Is There Anything New?
This does not mean that something new is COMING from Lucky Motors beside Peugeot. YES, obviously, there is a possibility if Lucky Motors want to, but for now, this news about STELLANTIS is more of straightening the paperwork and files with a new partner. Don’t expect a Fiat, Opel, Ram, Jeep, Vauxhall or anything else at this time.
We already know that Lucky Motors is very near introducing a Peugeot brand vehicle, and we all know for the last few weeks that it might be the sub-compact crossover 2008. A single unit was imported It’s still under test and trial and evaluation so, early to say BUT expected to happen.
Lucky Motors will not bring any vehicle from the Peugeot brand, which can become a competitor of its own model from KIA. This should also indicate that we might not see a KIA CERATO sedan. Instead, Lucky is giving a preference to a utility vehicle because of market trend ( consumer attraction) and not getting into direct competition with the introduction of a sedan.
Basically, they are widening their offering with different brands BUT not competing with each other with their products. In other words, not bringing a model that is going into Kia Sportage territory and not bringing any model that can go in the same category as Kia Picanto both as segment and price point.
Stellantis and Launch of Peugeot Cars in Pakistan:
A per available information, Lucky want to explore vehicles around +/- 4 Million price point with Peugeot cars. Some light commercial vehicles are also planned. Once more information is available, it will be shared. Reliability, maintenance of Peugeot vehicles is another subject for some other time.
It’s early to say how Lucky Motors will market its Peugeot cars in Pakistan. Will there be a new dealership network or the same KIA dealerships will become the selling and service points of Peugeot cars, Is something that needs to be explored. Maybe the current dealerships of KIA become Peugeot dealership as well. This will save time, and also, an existing infrastructure could be used for two different brand vehicles. It is possible because if Lucky can assemble both brands, dealerships can sell and service it too.
