Both the PSA Group and Fiat Chrysler Automobiles have confirmed there are ongoing discussions regarding a possible merger between the two firms.

A statement on the PSA Group website read: “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.”

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

It was reported by the Wall Street Journal that a merger was on the table, with a view of creating a $50bn global business. Following the reports, Fiat Chrysler shares jumped 7.5%.

Discussions remain in early stages, according to reports, with the merger expected to face significant political and financial hurdles should an agreement be reached. Peugeot chief executive Carlos Tavares has been touted to lead the combined business as its chief, while John Elkann, chairman of Fiat Chrysler would keep his role at the new company.

Should a deal go through, a number of brands including Alfa Romeo, Citroen, Jeep, Opel, Peugeot and Vauxhall would be brought under one umbrella.

The move follows on from PSA Group’s merger with Opel and Vauxhall last year, which saw Frédéric Brunet and Xavier Duchemin appointed as managing directors on 1 August 2018.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Elsewhere, FCA Group withdrew its offer to merge with French car manufacturer Renault in June this year, in a deal that could have been worth up to  €32.6bn (£28.3bn). The offer was withdrawn after a six hour meeting between Renault board members ended with members, including the French government which owns a 15% stake, requesting a delay.