Fiat and Peugeot are preparing to create the largest automaker in the world
Groupe Automakers PSA and Fiat Chrysler Automobiles N. V. have confirmed a brief press release negotiations aimed at creating one of the world's leading automotive groups.
Informed about the negotiations, citing informed sources told The Wall Street Journal. According to sources, the companies are discussing a merger of equals in the form of an exchange of shares. The CEO of the merged company can become PSA CEO Carlos Tavares, Chairman of the Board of Directors occupies a similar position in FCA John Elkan.
as a result of a possible merger can be created the largest automotive Corporation in the world with a market capitalization of about $ 50 billion. By the end of 2018, the two companies were sold 8.7 million vehicles, which is the fourth indicator in the industry. Large sales have recorded only the Volkswagen and the Alliance of Nissan-Renault-Mitsubishi (for 10.8 million car), and the Japanese Toyota Motor (10.6 million).
Last summer, the FCA has considered a merger with its main French competitor, PSA group, Renault SA, but the talks ended inconclusively. The WSJ sources reported that the cause of the failure of the talks could be the position of the French authorities and the lack of support from Nissan, partner of Renault in the Alliance.