OREANDA-NEWS. American-Italian automobile concern Fiat Chrysler and French auto giant Groupe PSA have signed a merger agreement. This was announced on Wednesday by the press service of the French automaker.

"Fiat Chrysler and Groupe PSA today signed an agreement to merge their businesses in order to create the 4th largest car manufacturer in terms of production and the third largest turnover in the world", the statement said. It's noted that the implementation of the agreement will take about 12-15 months. The new combined company intends to sell about 8.7 million cars a year, the total revenue of the auto giant will be € 170 billion, and operating profit - € 11 billion.

“Our merger is a great opportunity to take a stronger position in the automotive industry as we strive to master the transition to a world of clean, safe and sustainable mobility and provide our customers with world-class products, technologies and services”, said PSA President Carlos Tavares. Earlier, representatives of Fiat Chrysler discussed the possibility of a merger with the French automaker Renault. The deal was not implemented. One of the reasons for this was that it was not approved by the French authorities.