MILAN/PARIS: Talks between Fiat Chrysler (FCHA.MI) and Peugeot owner PSA (PEUP.PA) over a potential tie-up that could create a $50 billion car giant, gathered pace on Wednesday, with a the possibility of a deal being announced as early as Thursday.
The two groups said in separate statements they were holding discussions aimed at creating one of the world’s leading auto makers, better placed to tackle a host of costly technological and regulatory challenges facing the global auto industry.
A deal could be announced as early as Thursday, a source familiar with the discussions said. A Fiat Chrysler Automobiles (FCA) spokesperson declined to comment on a timeline.
After ditching a proposed merger with Renault (RENA.PA) in June, FCA Chairman John Elkann confirmed the group’s bid to pursue an alternative alliance as carmakers face huge investments in electrification, emission reduction and autonomous driving technologies. —Reuters