Fiat Chrysler Automobiles is in talks with the PSA Group about a merger, which would create one of the world’s biggest car groups.
The Financial Times has reported that the two firms have been in discussion about the same for several months. Both companies have now confirmed this.
PSA issued a statement that said, “Following recent reports on a possible business combination between Groupe PSA and the FCA Group, Groupe PSA confirms there are ongoing discussions aimed at creating one of the world’s leading automotive groups.”
A similar statement from FCA read, “Following recent reports on a possible business combination between Groupe PSA and the FCA Group, Fiat Chrysler Automobiles NV confirms there are ongoing discussions aimed at creating one of the world’s leading mobility groups. FCA has nothing further to add at this time.”
The potential merger would create a car giant worth around GBP 40 billion and encompassing some of the world’s biggest car brands. FCA owns Fiat, Jeep, Alfa Romeo, Maserati, Ram, Lancia and Chrysler, while the PSA stable comprises Peugeot, Citroën, DS and Vauxhall-Opel.
FCA has been looking for a partner for some time; and earlier this year the carmaker held extended talks with Groupe Renault over a possible partnership. However, those talks broke down as the two firms could not reach an agreement.