Fiat Chrysler (FCA) and Peugeot PSA are currently negotiating an alliance

Fiat Chrysler (FCA) and Peugeot PSA are currently negotiating an alliance

October 30, 2019 0 By autotimesnews

Two large automakers can create a single concern. In this case, Fiat, Ram, Citroën, Opel and other companies will be merged into one of the largest in the world market.

The Wall Street Journal recently reported that Italian-American automaker Fiat Chrysler Automobiles (FCA) and PSA, French parent company Peugeot, Citroën, as well as luxury premium DS cars, could well be combined into one single concern, the total cost of which will be in the region of 50 billion dollars.

According to one of the sources, the option of merging companies on equal terms is being discussed. In this case, the president of the PSA, Carlos Tavares, should stand at the head of this association. In turn, John Elkann, who holds the post of chairman of the boards of directors of the FCA, will occupy a similar position in the new alliance.

 Another source claims that so far there is no guarantee that the association of large automakers will nevertheless take place.

Back in May of this year, the FCA proposed Peugeot a merger deal, in which case the new alliance would become the world’s third automaker after Volkswagen and Toyota, but in June the French government, Renault’s main shareholder, abandoned this idea.

 PSA is a French group formed in the 1970s. In 2017, she acquired the brands General Motors Opel and Vauxhall.