Fiat-Chrysler Automobiles may be taking another European automaker under its wing.
The Wall Street Journal reported Tuesday that FCA is in talks with PSA Group of France, the parent company of Peugeot, Citroen, DS, Vauxhall and Opel. The paper cited unnamed sources familiar with the matter. If the deal comes to fruition, it will create an international automaker worth about $50 billion U.S.
According to the Journal's sources, one possibility would combine an all-share merger of two equal parts. FCA chairman John Elkann would assume the chairmanship in the new company, and Peugeot CEO Carlos Tavares would keep his title for the merged operation.
The Journal reported that a successful merger would place FCA in the middle of the global automotive stage. Both companies sold a combined 8.7 million vehicles last year, putting the combination fourth worldwide, ahead of 8.4 million vehicles sold by Detroit-based General Motors. German manufacturer Volkswagen is number-one worldwide, with 10.8 million vehicles sold, according to the paper.
FCA is no stranger to merger talks. A planned union with French automaker Renault fell through earlier this year when FCA failed to get the backing of the French government, a substantial Renault stockholder. The merger would have saved both companies billions of dollars by streamlining each of their operations and placing a focus on the up-and-coming electric and autonomous vehicle markets.
German automotive giant Daimler-Benz bought Chrysler Corporation in 1998, only to sell most of the company nine years later to Cerberus, a U.S. holding company. After Chrysler filed for bankruptcy during the 2009 economic collapse, the Italian-based Fiat purchased the Chrysler shares bought by the U.S. government as part of its bailout, then completed a merger in 2011. Fiat-Chrysler has two headquarters in Auburn Hills, Michigan and Turin, Italy. Additional offices are in London, U.K. and Amsterdam.
FCA's Canadian subsidiary has three operations, all in Ontario, with Windsor Assembly, Brampton Assembly, and Etobicoke Casting in Toronto. Its headquarters is in downtown Windsor.