Fiat Chrysler Automobiles (FCA) and PSA Group have officially confirmed “ongoing discussions” that could lead to a possible merger.
The rumor that started many months ago was confirmed by both companies and if they agree on every aspect, then they will create one of the biggest car conglomerates worldwide.
In a short press release, PSA said: “Following recent reports on a possible business combination between Groupe PSA and FCA Group, Groupe PSA confirms there are ongoing discussions aiming at creating one of the world’s leading automotive Groups.”
A few hours later, FCA stepped forward and confirmed the same thing, stating that they have “nothing further to add at this time”.
According to earlier reports, it was the parent company of Peugeot, Citroen, DS, Opel and Vauxhall that approached FCA earlier this year, but they allegedly declined the initial offer. Back then, Fiat-Chrysler was in similar talks with Renault, yet they couldn’t get the French government’s seal of approval, which owns a 15 percent stake, and Nissan’s, which is a partner in the Alliance.
A PSA-FCA merger would help the two companies share production costs and further expand their reach, turning both into even bigger global players. Last year, they sold 8.7 million vehicles combined, which would have put them ahead of General Motors’ 8.4 million, but behind Toyota and the Renault-Nissan-Mitsubishi Alliance. The Volkswagen Group managed to shift 10.8 million cars in 2018.
FCA could also assist PSA in re-launching the Peugeot brand in the United States.