Working groups at Fiat Chrysler Automobiles and Peugeot's owner PSA are speeding up work on closing their merger deal despite the coronavirus crisis, PSA CEO Carlos Tavares said in an internal note seen by Reuters.

Tavares also said in the note the working groups were also speeding up work on synergies.

The crisis triggered by COVID-19 has virtually wiped out demand for new vehicles in Europe and North America, pushing automakers to temporarily halt most production and leaving them needing cash.

In late 2019, PSA Group and Fiat Chrysler Automobiles signed a memorandum of understanding to define their “planned merger came off without any delays, drama or disruption”.

The new company was expected to come into being late this year or early in 2021 but this was before the Covid-19 pandemic.

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.

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