By Nora Naughton 

Fiat Chrysler Automobiles NV and PSA Group plan to call their combined company Stellantis upon completing a trans-Atlantic merger aimed at creating one of the world's largest auto companies.

The new name, revealed Wednesday, has its roots in the Latin word "stello," meaning "to brighten with stars," the companies said, and is cast in a font reminiscent of the futuristic style used by Tesla Inc. in its corporate logo.

Stellantis will replace the corporate names for both companies, although the Fiat and Chrysler badges will live for the individual brands. For Fiat Chrysler, this is the first time that the two storied brand names have been dropped from the parent company's title.

The two auto makers agreed to merge last year in a $50 billion deal that they say would help them leverage their global scale and advance new technologies aimed at meeting tougher environmental regulations. As the cost of doing business continues to grow for global car companies, collaboration among traditional rivals has become a more attractive option.

Despite the recent fallout from the Covid-19 pandemic, both companies have said they are pressing ahead with the combination, and the deal is still on track to close in early 2021.

Chrysler, named after Walter Chrysler who founded the company in 1925, has endured as a corporate name for nearly a century and has survived previous mergers, including the failed DaimlerChrysler tie-up in the 2000s.

Italy's Fiat traces its roots back to 1899 when the Italian car company was founded by Giovanni Agnelli. PSA Group is the parent company for the makers of Peugeot, Citroën and other automotive brands.

Company executives have said the two sides will have equal share in the newly formed company, and the deal will result in annual cost savings of about EUR3.7 billion.

(END) Dow Jones Newswires

July 15, 2020 15:43 ET (19:43 GMT)