Fiat Chrysler Automobiles and PSA Peugeot both confirmed on Wednesday that they’ve held talks for one possible combination which analysts think could help take shape into a merger.
The Italian-American automobile maker said that the discussions are mainly aimed at developing one of the best mobility groups of the world. However, the firm declined to provide further details.
The discussions come post Fiat Chrysler pulled back one proposed merger that it held along with Renault over political distress in France due to the accord.
Fiat Chrysler had proposed one 50-50 merger along with Renault this May, saying that it would develop the third-biggest automaker of the world and save out $5.6bn annually. And since then, John Elkann, the Chairman of Fiat Chrysler, confirmed the group’s decision to carry on with an alternative association.
Fiat Chrysler, since long, has been searching for one partner to aid shoulder investments when it comes to capital-intensive industry.
Global carmakers experience the potential of slow demand coinciding along with a requirement of investing in autonomy and electrification. With this in mind, many analysts believe that a Fiat Chrysler and PSA Peugeot deal will benefit.
Notably, the US headquarters of Fiat Chrysler is in Michigan’s Auburn Hills. The firm owns several brands, which includes Dodge, Ram and Jeep.