The combination would create the fourth largest global OEM in terms of annual unit sales and bring together expertise for a new era in sustainable mobility.

Discussions have opened a path to the creation of a new group with global scale and resources owned 50% by Groupe Peugeot S.A. (PSA) shareholders and 50% by Fiat Chrysler Automobile (FCA) shareholders.

The new group will allow both firms to effectively manage the challenges of the new era in sustainable mobility With new challenges in connected, electrified, shared and autonomous mobility, the combined entity would leverage its strong global Research and Development footprint to foster innovation and meet these challenges with speed and capital efficiency.

The plan to combine the Groupe PSA and FCA businesses follows intensive discussions between the senior managements of the two companies.

Both share the 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 sustainable mobility.

The proposed combination would create the fourth largest global original equipment manufacturer in terms of unit sales at 8.7 million vehicles, with combined revenues of nearly $258 billion and recurring operating profits of over $16.7 billion.

The value accretion resulting from the transaction is estimated to be approximately $5.6 billion in annual run-rate synergies derived principally from a more efficient allocation of resources for large-scale investments in vehicle platforms, powertrain and technology and from the enhanced purchasing capability inherent in the combined group's new scale. These synergy estimates are not based on any plant closures.