A merger between the Fiat-Chrysler-Jeep brands and Peugeot-Citroen-Opel group may be under threat after the two conglomerates allegedly failed to respond to concerns from the European Union, according to a report from the Financial Times.
The European Union's executive arm, the European Commission (EC), has launched a four-month antitrust investigation into the proposed merger of the two carmakers after they failed to meet a deadline last week to address initial concerns put forward by the EC.
Regulators from the EC are worried the deal could reduce competition in the market for small commercial vans – a popular segment in Europe.
FCA and PSA framed the merger as a way for the two manufacturers to offset slowing demand, and share development costs in meeting increasingly tougher emissions and safety standards.
Earlier this month CarAdvice reported FCA had obtained an estimated €17.55 billion in loans.
“As we continue to make progress through our cross-company project teams, we will be detailing to the EC ... the substantial benefits of the proposed merger to our customers, the European industry and each company,” the two automakers said in a joint statement.
The European Commission flagged their concerns after an initial review of the deal, requesting FCA and PSA provide concessions by June 10.
The two manufacturers failed to respond to the deadline, leading the EC to launch an additional and more comprehensive phase of the investigation. The EC will hand down its decision on 22 October 2020.