Auto Merger Confirmed

There will soon be a new automaker in the market.

A merger is moving forward between Italian-American automaker Fiat Chrysler and France's Peugot Groupe PSA, making it the fourth-largest automaker in the world.

The agreement comes a few months after talks on cooperating on technology projects between the two companies fell through.

"The Supervisory Board of Peugeot S.A. and the Board of Directors of Fiat Chrysler Automobiles N.V. (“FCA”) (NYSE: FCAU / MTA: FCA) have each unanimously agreed to work towards a full combination of their respective businesses by way of a 50/50 merger. Both boards have given the mandate to their respective teams to finalize the discussions to reach a binding Memorandum of Understanding in the coming weeks." — www.fcagroup.com

"Discussions have opened a path to the creation of a new group with global scale and resources owned 50% by Groupe PSA shareholders and 50% by FCA shareholders. In a rapidly changing environment, with new challenges in connected, electrified, shared and autonomous mobility, the combined entity would leverage its strong global R&D footprint and ecosystem to foster innovation and meet these challenges with speed and capital efficiency." —  www.fcagroup.com

 — With files from MetroSource