Groupe PSA and Fiat-Chrysler are in talks to MERGE

Peugeot e Legend ConceptPeugeot

Peugeot e Legend ConceptPeugeot

"Peugeot could potentially leverage the network of Fiat-Chrysler to create a presence in the United States, and Fiat Chrysler would achieve greater exposure and scale in Europe, benefitting from PSA's tech to tackle CO2", he added.

Fiat Chrysler Automobiles is in talks with the PSA Group about a merger, which would create one of the world's biggest vehicle groups.

As reported by Bloomberg, the talks come several months after Fiat Chrysler and PSA, led by CEO Carlos Tavares, explored a partnership on pooling investment to build cars in Europe, and following the collapse of negotiations between Fiat Chrysler and French competitor Renault in June.

Yet if a combination of Peugeot and FCA succeeds in overcoming political, financial and governance hurdles, the new enterprise would still face substantial challenges.

The discussions mark an attempt by France's PSA and its chief executive Carlos Tavares to take advantage of a failed combination earlier this year between FCA and rival French carmaker Renault. The fourth-largest automaker out there, to be more precise.

Fiat Chrysler Automobiles isn't done trying to court a partner.

That's a potentially big group, considering the combined entity could sell somewhere in the region of 8.5 million cars a year, worth around $50bn.

This isn't the first time the two companies have been linked. PSA, the maker of Peugeot and Citroen cars, declined to comment. FCA said in its statement it had nothing more to add for the time being.

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