Fiat Chrysler Automobiles (FCA) has confirmed that it is holding talks with the French giant PSA Group over a possible tie-up.
The news comes after strong speculation earlier this year that Renault was looking to merge with the Italian-American firm, which produces cars under the Fiat, Alfa Romeo, Dodge and Chrysler brands, among others.
Now, though, PSA Group – owning Peugeot, Citroen and Vauxhall – could be about to have a tie-up.
FCA confirmed that discussions were ongoing and were ‘aimed at creating one of the world’s leading mobility groups’ as the challenges of developing autonomous and electrified models become ever more apparent.
The Fiat Chrysler group formed in 2014 when Fiat took over American firm Chrysler – saving the brand from imminent bankruptcy.
A merger could be announced as early as tomorrow, according to the Reuters news agency, which would create one of the largest automotive brands worth up to £40bn.
French giant PSA Group, with Carlos Tavares at the helm, has transformed Vauxhall’s fortunes since the brand was purchased by the automotive group in 2017 off General Motors, and there is a hope the same could happen for Fiat Chrysler.