Italian-US carmaker Fiat Chrysler Automobiles (FCA) said "there are ongoing discussions aimed at creating one of the world's leading mobility groups" with France's PSA. A similar statement from PSA offered no additional details. Both companies were holding board meetings Wednesday evening, sources said. A combined FCA-PSA would produce the scale needed in an industry facing slowing demand, with 8.7 million vehicles sold per year and 184 billion euros in annual sales. A person with knowledge of the matter told AFP on Tuesday that a merger - which is not guaranteed - would create a firm valued at about $50 billion.

PSA could gain access to the lucrative US market, while fulfilling the long-held goal of late ex-FCA head Sergio Marchionne for a merger to survive escalating costs and competition. The tie-up would make the new automaker the fourth largest in terms of sales behind Volkswagen, Renault-Nissan-Mitsubishi and Toyota, and would combine a host of well-known brands from Alfa Romeo, Jeep and Dodge to Citroen, Opel and Peugeot.

Copyright Agence France-Presse, 2019