Fiat and Peugeot announce plans to merge

According to a joint statement, the decision to merge has been brought about by the shared conviction ‘that there is compelling logic for a bold and decisive move that would create an industry leader with the scale, capabilities and resources to capture successfully the opportunities and manage effectively the challenges of the new era in mobility.’

The joint merger is expected to lead to annual savings of approximately €3.7bn that will be brought about in part by spreading the cost of large-scale investments in vehicle platforms, powertrain and technology. Consequently, neither company anticipates any plant closures.

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Peugeot boss Carlos Tavares will assume the role of CEO for an initial term of five-years. “This convergence brings significant value to all the stakeholders and opens a bright future for the combined entity,” he said.

"I'm delighted by the opportunity to work with Carlos and his team on this potentially industry-changing combination,” added Fiat CEO Mike Manley. “We have a long history of successful cooperation with Groupe PSA and I am convinced that together with our great people we can create a world class global mobility company."