The auto industry is having its golden years regarding changes. Now the Italian car manufacturer Fiat Chrysler (FCHA) is said to merge with the French Peugeot owner PSA (UG). The companies are expected to publish the details on Thursday the Wall Street Journal reported siting sources.
This 46 billion dollars merge would create the world fourth largest car manufacturer. Last time when Fiat was in the headlines, it was about a merge with French Renault (RNO) in June 2019. Then the companies were also discussing about vehicle platforms and sharing engineering resources. According to media sources, this merge did not get the French government approval so the deal broke up.
This time the French government is also involved while the government is one of the biggest owners of Peugeot with 12 % ownership.
The new auto company would be the fourth largest in the world after Volkswagen, Toyota and Renault-Nissan. The industry is facing heavy technology changes due to electrification, emission reductions and autonomous driving. This has also caused that some manufacturers are calling for sharing tech platforms and R&D for electric car manufacturing.
The Milan listed Fiat stock closed up 9,5 % and the Paris based Peugeot also gained 4,5 % on Wednesday.