The two groups say that discussions have opened a path to the creation of a new group “with global scale and resources” owned 50 per cent by Groupe PSA shareholders and 50 per cent by FCA shareholders. PSA embraces Peugeot, Citroen, DS, Opel and Vauxhall, while FCA operates leading Italian and American brands, including Fiat, Alfa Romeo, Maserati, Chrysler and Jeep. The partners outlined the deal as follows:

• The combination would create the 4^th largest global OEM in terms of annual unit sales (8.7m vehicles)
• At its inception, the combined company would realize among the highest margins in the markets where it would operate, based on FCA’s strength in North America and Latin America and Groupe PSA’s in Europe
• The combination would unite the groups’ respective brand strengths across Luxury, Premium, Mainstream Passenger Car, SUV and Trucks & Light Commercial – making them stronger together
• The merged entity would bring together the companies’ extensive and growing capabilities in the technologies shaping the new era of sustainable mobility, including electrified powertrain, autonomous driving and digital connectivity
• Approximately €3.7 billion estimated annual run-rate synergies without any plant closures resulting from the transaction
• Highly respected combined management team recognised for exceptional value creation and with proven success in previous OEM combinations
• Dutch parent company Board would have balanced representation and a majority of independent Directors. John Elkann as Chairman and Carlos Tavares as CEO and member of the Board