DETROIT (AP) - Fiat Chrysler and Peugeot plan to merge into the world’s fourth-largest automaker, a giant that could produce a wider variety of cleaner vehicles at a faster pace, including more powered by electricity.
The boards of the two companies signed the deal Wednesday to achieve what neither was good at alone: conquering the challenges of stricter emission rules and navigating the transition to battery-powered and autonomous vehicles.
The new company does not yet have a name.
It will be led by Peugeot’s cost-cutting CEO Carlos Tavares, with Fiat Chrysler’s chairman John Elkman as chairman of the merged company.
The joint statement says the merger would position the new company to "successfully capitalize on the opportunities presented in the new era of sustainable mobility.''