Neither Fiat Chrysler nor PSA will appear in the forthcoming combined company. Instead, they plan to call it Stellantis upon completing the merger that would create one of the world's largest auto companies.

The companies said the new name has its roots in the Latin word "stello", which means"to brighten with stars".

PSA said the merger is expected to create one of the new leaders in the next era of mobility while at the same time preserving all the exceptional value and the values of its constituent parts.

The announcement confirms for the first time that Fiat and Chrysler won't appear in the parent company name. But they will live on as badges for individual brands. Brand names such as Jeep and Peugeot will continue as well.

"The stakes are high here," Marcus Collins, a marketing professor at the University of Michigan, told the Wall Street Journal. "A new name presents a clean slate, but you only have so many chances to reinvent yourself."

The two automakers agreed in December 2019 to merge in a $50 billion deal, which is expected to help them leverage their global scale and advance new technologies for 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 coronavirus pandemic, Fiat Chrysler and PSA have said they are pressing ahead with the merger deal and expect it to close in the first quarter of 2021.

Company executives said the two sides will have equal share in the newly formed company, and the deal will result in annual cost savings of about 3.7 billion euros ($4.22 billion).