Fiat Chrysler and Groupe PSA, the owners of Peugeot, have announced that they would combine forces to create the world’s fourth-largest carmaker by production volume.
In a joint statement, Fiat Chrysler and Groupe PSA said the merger will be a 50:50 exchange of stocks even as the new company which will be based in the Netherlands will have combined revenues of nearly $189 billion. PSA Peugeot CEO Carlos Tavares will head the new company and Fiat Chrysler Chairman John Elkann will assume the role of chairman.
What this move means is that Fiat, Dodge, Ram, Chrysler, Alfa Romeo, Maserati, Peugeot, DS, Citroën, Opel and Vauxhall brands will have a new owner leveraging the respective brand strengths across Luxury, Premium, Mainstream Passenger Car, SUV and Trucks & Light Commercial categories.
“In a rapidly changing environment, with new challenges in connected, electrified, shared and autonomous mobility, the combined entity would leverage its strong global [research and development] footprint and ecosystem to foster innovation and meet these challenges with speed and capital efficiency. Both companies “share the conviction that there is compelling logic for a bold and decisive move that would create an industry leader with the scale, capabilities and resources to capture successfully the opportunities, and manage effectively the challenges in the new era in mobility,” the companies said.