After reports surfaced yesterday that Fiat Chrysler Automobiles (FCA) and Peugeot Group (PSA) are in merger talks, both companies confirmed “ongoing discussions” that could create one of the world’s largest automakers.
Reports surrounding a possible FCA-PSA merger came about after FCA’s talks with Renault fell through. Now, after Peugeot reportedly approached FCA with an offer of their own, the two companies are working on hammering out details. For its part, FCA released a short statement Wednesday confirming earlier reports:
Following recent reports on a possible business combination between Groupe PSA and FCA Group, Fiat Chrysler Automobiles N.V., confirms there are ongoing discussions aimed at creating one of the world‘s leading mobility Groups. FCA has nothing further to add at this time.”
PSA released a similar statement. The French automaker currently owns the Peugeot, Citroen, DS, Opel and Vauxhall brands that are sold in global markets, but not the United States. A potential merger between the two companies could herald Peugeot’s return, if not the other brands, to the U.S. market. It could also allow FCA, which owns the Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Ram and Maserati brands, to expand its market share thanks to shared R&D costs and production capacity.
If the merger goes through, the combined automaker would be a serious global player, only behind Toyota, the Renault-Nissan-Mitsubishi alliance and Volkswagen. The two automakers sold a combined 8.7 million vehicles globally last year.