Fiat and Peugeot boards approve merger
The boards of Fiat Chrysler and PSA Peugeot have approved merging the two companies to create the world's fourth-largest vehicle maker with a value of about $50bn (€45bn).
The formal announcement that the companies have agreed "to work towards a full combination of their respective entities by way of a 50/50 merger" came early on Thursday.
The combined companies will be able to share the cost of developing electric and autonomous vehicles, and will also share technology and save money with greater purchasing power.
The merger decision comes about five months after a similar deal with French firm Renault fell apart.