GAC respects merger plan between Fiat and PSA

Fiat Chrysler’s Chinese partner Guangzhou Automobile Group (GAC) stated it respected the firm’s decision to merge with Peugeot parent company PSA and would look to deepen its collaboration with the automaker.

A spokeswoman made the comments to Reuters through text message on Thursday, following FCA and PSA statement that they would join forces through a 50-50 share swap to create the fourth-largest automaker of the world.

The joint venture between GAC and FCA, GAC FCA, which mostly sells Jeep sport-utility vehicles in China. It sold 125,181 vehicles last year, down 39% from a year previously.