Mumbai: Seeking to create the world's fourth largest carmaker in terms of annual sales, Fiat Chrysler Automobiles (FCA) and Groupe PSA have decided to merge into a 50-50 joint venture.
"The combined company would realize among the highest margins in the markets where it would operate, based on FCA's strength in North America and Latin America and Groupe PSA's in Europe," a joint statement said.
The merged auto giant is expected to clock annual unit sales of 8.7 million vehicles and combined revenues of nearly euro 170 billion.
The proposed merger would allow Groupe PSA to leverage FCA's presence in the US while FCA would get market access in Europe where Groupe PSA has enormous presence.
FCA has a wide portfolio of brands such as Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Lancia, Ram and Maserati. The Groupe PSA has five car brands - Peugeot, Citroen, DS, Opel and Vauxhall.
FCA has its presence in India with the Jeep brand. The Groupe PSA has plans to introduce the Citron brand in the country.
