PSA Peugeot and Fiat Chrysler have announced that both companies will be merging their automobile businesses. As a result, the new entity will become the 4th largest automaker in the world. Both brands have been in discussion over this merger for months, and the new developments on the same will be officially revealed soon.
The brands involved in this merger are some big names. From Fiat Chrysler we have Fiat, Jeep, Maserati, Ram, Lancia, Alfa Romeo and Chrysler. From PSA Peugeot we will have Opel, Vauxhall, Citroen, DS & Peugeot of course. Do note, Peugeot motorcycles has been acquired 100% by Mahindra.
With this merger, all car brands mentioned above will engage in platform and drivetrain sharing. With this, the development costs of the cars will go down drastically and this will improve profitability for the combined entity. Sedans, sports cars, saloons, SUVs, pick-up trucks, convertibles, coupes, MPVs and more such models will be built together.
FCA was also in talks with Renault for a partnership earlier, but things did not fall in place.