Fiat Chrysler and Peugeot combined would have enough scale to confront big shifts in the auto industry, including a race to develop electric cars and driverless technologies.
Fiat Chrysler Automobiles and France’s PSA Peugeot said Thursday that they have agreed to merge. The combination would create the world’s fourth-largest automaker with enough scale to confront big shifts in the industry, including a race to develop electric cars and driverless technologies.
Philippe Houchois, an analyst at research firm Jeffries, called the agreement “the most logical and attractive combination in autos.” Peugeot makes mostly small, city-friendly cars, family sedans and SUVs under the nameplates of Peugeot, Citroen and Opel. That is where the companies can expect to have the most overlap.
European automakers have been looking to mergers and alliances for years to share R&D costs and tackle the issue of overproduction on the continent.“We have to face the challenges of electric cars and autonomous cars. To face this you need to have champions at the world level,” French Finance Minister Bruno Le Maire told reporters.
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