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Fiat Chrysler in merger talks with Peugeot – report

The new combination would create an automaker with a strong presence in Europe, North America and South America.


There are reportedly high-level talks regarding a merger of Fiat Chrysler (FCA) and the PSA Group, which could create a new automaker valued at around US$50 billion ($73 billion).

Sources have told the Wall Street Journal the two parties are discussing an all-share transaction.

Should such a deal occur, PSA CEO Carlos Tavares would lead the newly merged automaker, while John Elkann, and head of the Agnelli family which holds a controlling stake in FCA, would become its chairman.

Other options are being discussed, according to the WSJ, but no agreement has yet been reached, and talks could still break down.

This latest news comes just months after a proposed merger of equals between Renault and FCA fell apart, reportedly due to the French government, which holds a substantial stake in the French automaker, requiring Nissan, Renault's alliance partner, to be fully on board with the merger.

Since then Renault and Nissan have removed their CEOs.

Fiat Chrysler currently controls eight brands: Fiat, Alfa Romeo, Lancia, Maserati, Chrysler, Jeep, Dodge and Ram. While it has a strong presence in Italy and South America, most of its profit come from Jeep's SUVs and Ram's fleet of pickup trucks.

The PSA Group enjoys healthy market shares in Europe, Latin America and parts of Africa, but has no presence in the North American market. Along with its well-established Peugeot and Citroen marques, it also busy establishing DS as a luxury brand, and turning around Opel and Vauxhall, which it bought from GM in 2017.

Thanks to this buyout, PSA currently produces the Astra and Commodore (sold in Europe as the Opel/Vauxhall Insignia) for Holden.

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