Fiat Chrysler and Peugeot are planning to merge in a bid to become the fourth largest automakers in the world, according to Reuters.
The deal is based on a 50-50 share swap and will create a $50 billion company domiciled in the Netherlands.
In shared roles, Peugot boss Carlos Tavares and Chrysler’s John Elkann will respectively serve as CEO and chairman of the new company expected to birth from the merger.
“The management teams of FCA and PSA will seek to finalise the discussions in the coming weeks to create a group with 8.7 million in annual vehicle sales and make savings of 3.7 billion euros ($4.1 billion), even without plant closures, said a statement from the two companies.
The multi-brand group will include the Fiat, Dodge, Ram, Chrysler, Alfa Romeo, Maserati, Peugeot, DS, Opel and Vauxhall brands, allowing it to serve mass and premium passenger car markets as well as trucks and light commercial vehicles.
“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,” FCA and PSA said.