It wasn’t long ago Fiat Chrysler was in talks with Renault regarding a potential merger, but that isn’t stopping FCA from courting someone else. Both FCA and French automaker PSA Groupe have confirmed the two automakers are currently engaged in merger talks.
The confirmation came from both parties after recent reports suggested the two were interested in potentially merging. Talks likely started shortly after FCA’s failed attempt to merge with Renault several months ago.
In a press release, PSA Groupe stated, “Following recent reports on a possible business combination between Groupe PSA and FCA Group, Groupe PSA confirms there are ongoing discussions aiming at creating one of the world’s leading automotive Groups.”
FCA followed with a similar release but added no additional context.
Much like the aspirations that fueled the talks with Renault, both PSA and FCA are likely intrigued by the potential scale of combining the two automakers’ operations. Combined, the two produced 8.7 million vehicles in 2018, which would make the combined company larger than General Motors, but shy of the top three slots.
A combined automaker would likely see structural cost reductions, specifically surrounding manufacturing. FCA could also jumpstart PSA’s aspirations of bringing the Peugeot and Opel brands to the United States market.
Now that the companies have publicly confirmed merger talks, an update on the talks should not be far off.