FCA and Peugeot-Citroen sign binding merger deal – World's fourth largest auto company to be formed

The boards of Fiat Chrysler Automobiles and PSA Peugeot on Wednesday signed a binding merger deal creating the world’s fourth-largest auto company with the scale to confront the challenges of stricter emissions regulations and the transition to new driving technologies.

The companies said in a joint statement the new group will be led by PSA’s cost-cutting CEO Carlo Tavares, with Fiat Chrysler’s chairman John Elkann as chairman of the merged company, AP reports.

Fiat Chrysler CEO Mike Manley will stay on, but it was not announced in what capacity. No name for the new company has been decided, executives said in a conference call.

The deal, which was unveiled in October, was announced as a 50-50 merger. It will give birth to a group with revenues of nearly 170 billion euros and producing 8.7 million cars a year — just behind Toyota, Volkswagen and the Renault-Nissan alliance.

The merger is expected to create 3.7 billion euros in annual savings, which will be invested in “the new era of sustainable mobility″ and to meet strict new emissions regulations, particularly in Europe.

Serbia is following FCA's announcements and decisions with a great interest, as the company has a modern factory in Kragujevac, whose production capacities have been underused lately.

Fca S.p.A. Italija

PSA Peugeot Citroën PARIS

Fiat Chrysler Automobiles

Peugeot

Citroen

Toyota

Volkswagen

Carlo Tavares

John Elkann

Mike Manley