Fiat Chrysler has confirmed it is in talks with PSA Peugeot over a deal that would create a new giant in the car industry valued at around $50bn.
A merger would bring together some of the world’s best-known motoring brands including Jeep, Alfa Romeo, Vauxhall, Citroen, Dodge, Lancia, Maserati, Opel and Peugeot.
The combined firm would be the fourth-largest car maker in the world, headed up by two dynasties with a long history in the industry – Italy’s Agnelli family, and the Peugeot family of France.
In a statement, Fiat Chrysler said it “confirms there are ongoing discussions aimed at creating one of the world’s leading mobility groups” with PSA.
Shares in the Italian-American group jumped 7.5 per cent in response to the news, while PSA shares rose 5.7 per cent.
1/15 Pork
There will be tariffs on pork in order to protect British farmers
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2/15 Cheese
There will be tariffs in place on some cheeses including €22.10/100kg of cheddar, €19.10/100kg of processed cheese and €18.60/100kg on some blue cheeses
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3/15 Milk
There will be no tariffs in place on milk
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4/15 Car Parts
There will be no tariffs on car parts imported from Europe
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5/15 Cars
However finished cars will face tariffs of 10.6%
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6/15 Alcoholic drinks
There will be no tariffs on alcoholic drinks – except on some rums due to ingredients used in their distilling process
Getty
7/15 Beef
There will be tariffs on beef in order to protect British farmers
Getty
8/15 Fish
There will be no tariffs on many types of fish including cod, haddock, salmon and sea bass
Getty
9/15 Fruit and vegetables
There will be no tariffs on almost all fruit and vegetables
Getty
10/15 Chocolate
There will be no tariffs on chocolate or other cocoa products
Getty
11/15 Poultry
There will be tariffs on poultry in order to protect British farmers
Getty
12/15 Ceramics
There will be some tariffs in place on ceramis
Getty
13/15 Steel
There will be no tariffs on steel
Getty
14/15 Coal
There will be no tariffs on coal
Getty
15/15 Lamb/Mutton
There will be tariffs on the meat of sheep in order to protect British farmers
Getty
1/15 Pork
There will be tariffs on pork in order to protect British farmers
Getty
2/15 Cheese
There will be tariffs in place on some cheeses including €22.10/100kg of cheddar, €19.10/100kg of processed cheese and €18.60/100kg on some blue cheeses
Getty
3/15 Milk
There will be no tariffs in place on milk
Getty
4/15 Car Parts
There will be no tariffs on car parts imported from Europe
PA
5/15 Cars
However finished cars will face tariffs of 10.6%
Getty
6/15 Alcoholic drinks
There will be no tariffs on alcoholic drinks – except on some rums due to ingredients used in their distilling process
Getty
7/15 Beef
There will be tariffs on beef in order to protect British farmers
Getty
8/15 Fish
There will be no tariffs on many types of fish including cod, haddock, salmon and sea bass
Getty
9/15 Fruit and vegetables
There will be no tariffs on almost all fruit and vegetables
Getty
10/15 Chocolate
There will be no tariffs on chocolate or other cocoa products
Getty
11/15 Poultry
There will be tariffs on poultry in order to protect British farmers
Getty
12/15 Ceramics
There will be some tariffs in place on ceramis
Getty
13/15 Steel
There will be no tariffs on steel
Getty
14/15 Coal
There will be no tariffs on coal
Getty
15/15 Lamb/Mutton
There will be tariffs on the meat of sheep in order to protect British farmers
Getty
Last month, Fiat Chrysler withdrew a separate $40bn bid for Renault, after talks ran into problems surrounding Renault’s alliance with Nissan.
But analysts have pointed out that a tie-up with PSA would be a better fit for Fiat Chrysler.
Fiat Chrysler has a strong presence in the US – where it makes the majority of its profits – while PSA is focused on Europe.
New Peugeot cars have not been on sale in America for more than a quarter of a century but the French company has been plotting a return since at least the start of last year.
“If completed, we believe this should ignite more rational industry behaviour around allocation of capital, and this particular merger makes materially more sense than a potential FCA-Renault merger,” Evercore analyst Arndt Ellinghorst told Bloomberg.
It is the latest sign that firms in the industry are looking to consolidate, as they grapple with disruption caused by the shift to electric and autonomous vehicles.
Car companies are also among the hardest hit by a global economic slowdown and rising trade tariffs.
In August, Beijing announced it would reinstate earlier tariffs on US cars and car parts of between 5 and 25 per cent.
