Fiat Chrysler and PSA are set to gain EU approval for their billions worth merger which will create the world’s No.4 automaker, people knowledgeable with the matter said, as they strive to meet the industry’s dual challenges of funding cleaner automobiles and the global coronavirus crisis.
The green light from the European Commission would formalize the creation of Stellantis, an automaking group that could tap hefty profits from selling Ram pickup trucks and Jeep SUVs to U.S. drivers to fund the costly development of zero-emission vehicles for sale in other regions across the world.
The all-share merger declared last year would unite brands including Fiat, Jeep, Dodge, Ram, and Maserati with the likes of Peugeot, Opel, and DS – while targeting annual cost cuts of 5 billion euros ($6 billion) without shutting down factories.
The Commission and Italian-American group Fiat Chrysler Automobiles (FCA) refused to comment. France’s PSA did not immediately reply to a request for comment.