Fiat-Chrysler Automobiles and French automaker, Peugeot have agreed to terms on a 50-50 merger.
The newly combined company will have combined sales of 8.7 million units, and combined revenues of nearly 170 billion Euros. That converts to CAD 249.9-billion or USD 190.4-billion.
It will create the world's fourth-largest automaker by volume and third-biggest by revenue.
"The new Group will have a much greater geographic balance with 46 per cent of revenues derived from Europe, and 43 per cent from North America, based on aggregated 2018 figures for each company," said a release Wednesday morning from FCA.
Officials anticipate no plant closures with the transaction, which will take 12 to 15 months to complete.
The CEO of the new company will be Carlos Tavares, the chair of the managing board of Group PSA. He will hold the position for an initial term of five years.
"Carlos Tavares, [FCA CEO] Mike Manley and their executive teams have a strong track record in successfully turning around companies and combining OEMs with diverse cultures," continued the statement. "This experience will support the speed of the merger."
Mike Manley, new FCA CEO. (Photo courtesy of FCA)
"This is a union of two companies with incredible brands and a skilled and dedicated workforce. Both have faced the toughest of times and have emerged as agile, smart, formidable competitors. Our people share a common trait. They see challenges as opportunities to be embraced."
The combined company, as of yet unnamed, will focus on cutting-edge technology in "new energy vehicles, autonomous driving, and connectivity," according to the statement from FCA.
Fiat-Chrysler Automotive owns the Windsor Assembly Plant which employs about 6,000 workers in Windsor.
