Fiat Chrysler Automobiles and Groupe PSA have signed an agreement providing for a 50/50 merger of their businesses to create the fourth largest global automotive OEM by volume and 3rd largest by revenue.

This will enable them to have the leadership, resources and scale to be at the forefront of a new era of sustainable mobility.

The combined company will have annual unit sales of 8.7 million vehicles, with revenues of nearly €170 billion, recurring operating profit of over €11 billion and an operating profit margin of 6.6%, all on a simple aggregated basis of 2018 results.

The new Group will have much greater geographic balance with 46% of revenues derived from Europe and 43% from North America, based on aggregated 2018 figures of each company. The combination will bring the opportunity for the new company to reshape the strategy in other regions.

The efficiencies that will be gained from optimizing investments in vehicle platforms, engine families and new technologies while leveraging increased scale will enable the business to enhance its purchasing performance and create additional value for stakeholders.