The boards of Fiat Chrysler Automobiles and
PSA Peugeot on Wednesday signed a binding
merger deal creating the world’s fourth-largest
automaker with the scale to confront the
challenges of stricter emissions regulations and
the transition to new driving technologies.
The companies said in a joint statement the
new group will be led by PSA’s cost-cutting CEO
Carlos Tavares, with Fiat Chrysler’s chairman
John Elkann as head of the board of the merged
group. Fiat Chrysler CEO Mike Manley will stay
on, though it was unclear in what capacity.
No name for the new company has been
decided, executives said, but both Tavares and
Manley insisted it was not a “touchy subject.”