Fiat Chrysler, PSA Group set to merge
After Fiat Chrysler and the Renault called off talks earlier this year, FCA is now set to merge with PSA and form the world’s fourth-largest automotive group.
PSA and FCA said in a press release that the supervisory boards of both companies have “unanimously agreed to work towards a full combination of their respective businesses by way of a 50/50 merger.”
Both companies “share the conviction that there is compelling logic for a bold and decisive move that would create an industry leader with the scale, capabilities and resources to capture successfully the opportunities and manage effectively the challenges of the new era in mobility,” the press release said.
Merging the two companies will require regulatory approval, but, if given the go-ahead, the combined automaker will have the scale that former FCA CEO Sergio Marchionne once said was essential to survive.