Synergy Gains in Supply Chain for Automobile Manufacturing in Post-Merger Integration: A Case Study of Stellantis

Mergers in the automotive sector are frequently motivated by the potential for cost synergies, market share enhancement, and operational efficiency. The supply chain is a crucial domain that experiences immediate effects during post-merger integration (PMI). This research examines supply chain efficiency improvements in the automobile manufacturing sector during post-merger integration (PMI), using Stellantis’ formation from Fiat Chrysler Automobiles (FCA) and Peugeot S.A. (PSA) as a primary case study. Comparative analyses of ZF Friedrichshafen-WABCO, Geely-BYD, and BMW’s Industry 4.0 adoption illustrate the transformative role of IoT and AI in enhancing real-time visibility, predictive analytics, and cost efficiency. However, challenges like Stellantis’ 2024 Ram truck recall underscore the need for robust digital risk management and diversified supplier networks. Key findings of the study highlight a 22.7% increase in inventory turnover, a 17.4% reduction in lead times, and a 12.5% decrease in procurement costs per vehicle, driven by supplier consolidation, ERP standardization, and logistics optimization. A predictive model for the Nissan-Honda- Mitsubishi 2025 merger further explores synergies in EV technology, market alignment, and Industry 4.0 integration, emphasizing leadership commitment and cultural cohesion as critical factors. By combining quantitative insights with actionable strategies, this study offers a comprehensive framework for achieving operational excellence and competitive advantage in post-merger scenarios, providing valuable guidance for automakers to navigate the PMI challenges.