Fiat Chrysler and Peugeot confirm merger plans

Fiat Chrysler Automobiles (above) is set to be part of automaking group bigger than Ford. Photo: FCA Media

The board of directors of Fiat Chrysler and the managing board of Peugeot have decided not to distribute an ordinary dividend in 2020 related to fiscal year 2019, in light of the impact from the Covid-19 crisis.

Fiat Chrysler Automobiles (FCA )and Groupe PSA just released a statement to confirm “preparations for the 50/50 merger of their businesses announced in December 2019 are advancing well, including with respect to antitrust and other regulatory filings”.

“Completion of the proposed combination is expected on schedule, before end of Q1 2021, subject to customary closing conditions,” the statement said.

PSA owns Peugeot, Citroen and Opel brands while FCA produces Fiat, Jeep, Alfa Romeo, Chrysler, Dodge, Ram, Maserati among others.

Not only is the old Chrysler corporation changing ownership structure for a fourth time in less than 25 years, it will become part of the world's fourth-largest automaking group, one that is bigger than either General Motors or Ford, says Automotive News.