Fiat Chrysler confirms possible merger with Peugeot

FCA is negotiating a possible merger with the PSA Group, where brands like Peugeot and Citroen located.

The goal of the negotiations is to create "one of the leading auto alliances in the world."

Discussions on combining the FCA and PSA business have been going on in recent months, but they have only officially announced them now. Combining it as a whole will allow companies to ultimately reduce the cost of creating new products, further reducing the price of vehicles.

According to rumors, the head of the new alliance will be the current PSA CEO Carlos Tavares, and the main on the board of directors will be John Elkann (holds a similar position in FCA).