Update: October 31, 2019
The boards of Fiat Chrysler and PSA Peugeot have approved merging the two companies in a move that would create the world's fourth-largest automaker.
The companies have combined revenues of more than $188 billion. The 50-50 merger is expected to happen without any factory closures.
That was a concern of unions in both France and Italy where the carmakers have more model overlap.
Original Post: October 30, 2019
Fiat Chrysler and Peugeot owners confirm they are in early talks about a merger.
Both companies confirmed the talks in brief statements releasedWednesday.
Following recent reports on a possible business combination between Groupe PSA and FCA Group, Groupe PSA confirms there are ongoing discussions aiming at creating one of the world‘s leading automotive Groups.
The merger between the Italian-American automaker and the French car manufacturer, PSA, would create a nearly $50 billion company. That would make it the world's fourth largest car maker.
The talks come months after Fiat Chrysler's failed attempts to merge with France's Renault.
Fiat Chrysler couldn't get the full backing of the French government, which is a major shareholder in Renault and PSA.
The combined company would be led by PSA's CEO Carlos Tavares and Fiat Chrysler's chairman John Elkann.
Smaller companies are being encouraged to consolidate if they want to compete in a shifting industry geared towards electric and autonomous vehicles.
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