Fiat Chrysler, Peugeot merge

(From left) Chairman of the Managing Board of Groupe PSA Carlos Tavares and FCA CEO Mike Manley.

Fiat Chrysler Automobiles N.V. and Peugeot S.A. have signed a binding Combination Agreement providing for a 50/50 merger of their businesses to create the fourth-largest global automotive OEM by volume, with expected annual unit sales of 8.7 million vehicles.

The combined entity will cover all key vehicle segments, from luxury, premium, and mainstream passenger cars to SUVs, trucks, and light commercial vehicles. More than two-thirds of run rate volumes will be concentrated on two platforms, with approximately 3 million cars per year on each of the small platform and the compact/midsize platform.