Following the failed merger between Renault and Fiat Chrysler Automobiles, the Italian-American company is eyeing a new partner for a potential big-scale cooperation or merger. First reports about talks with PSA emerged yesterday and just hours later both automakers officially confirmed the information.
FCA and PSA separately announced that “there are ongoing discussions aimed at creating one of the world‘s leading mobility Groups.” The press releases from both manufacturers didn’t include more details and used the exact same words for describing the current situation. Meanwhile, a report from The Wall Street Journal tries to shine more light.
According to the publication, one of the possible scenarios that is currently being discussed by FCA and PSA includes an all-share merger of equals. “People familiar with the talks” told WSJ that Peugeot’s chief executive, Carlos Tavares, would lead the newly-formed company as its CEO, while FCA chairman John Elkann would transfer his role at the new automaker.
FCA's previous attempts:
Other options are also being discussed under different terms. If the potential deal is agreed by both sides, the FCA-PSA alliance should form a $46-billion trans-Atlantic auto giant ranked as the world’s fourth-largest by its sales volume.
PSA, which currently owns the Peugeot, Citroen, DS, Opel, and Vauxhall brands, is not the only French partner Fiat Chrysler Automobiles has approached in recent months. Earlier this year, the company was in talks with Renault but the deal fell apart after the French government, a major shareholder in Renault, and alliance partner Nissan refused to give full backing of the proposed combination.
No other official details are known about the ongoing PSA-FCA talks with the latter saying it “has nothing further to add at this time.” The story is expected to develop in the coming hours and days so watch this space for updates.