The Italian-American automaker Fiat Chrysler and the French group PSA (manufactures Peugeot, Citroen, Opel) have confirmed that they are negotiating a merger. The companies published a press release on their websites stating that the negotiations are aimed at creating “one of the largest mobility groups in the world.” There are no other details in the messages.
Earlier, the Wall Street Journal reported citing Fiat Chrysler and PSA negotiations, citing sources. According to the publication, the merger option is considered on an equal footing. At the same time, according to WSJ sources, PSA President Carlos Tavares will become the head of the joint automaker. John Elkann, chairman of Fiat Chrysler’s board of directors, may take the same position in his new company as he currently has.
There are no guarantees that negotiations will end successfully, the source said. Companies have no specific agreements yet; they simply consider different options.
In the spring, Fiat Chrysler negotiated a merger with French Renault, but no agreement was reached. In early June, the Italian-American automaker withdrew its proposal, explaining this by negative political conditions in France.
The company Fiat Chrysler was formed after the purchase of the Italian holding Fiat Chrysler American company in 2014. The activities of the automaker control family of Italian entrepreneurs Agnelli. In addition to Fiat and Chrysler, among the brands owned by the concern are Alfa Romeo, Dodge, Jeep, Maserati.
PSA is a French group formed in the 1970s. It currently owns brands such as Peugeot, Citroen, Opel, Vauxhall.