An Italian newspaper reported on Saturday that PSA Peugeot Citroen and Fiat are considering a potential merger, which would make the new PSA Peugeot Citroen Fiat entity the world’s number 4 carmaker. If true, it is some pretty quick progress, coming right after Fiat’s CEO mentioned the Italian company needed to find a partner to survive the crisis brewing in the automotive industry, but such haste is needed in these times.
PSA has mentioned before in the past that it preferably did not want to add new alliances, but instead wanted to deepen existing relationships. PSA and Fiat already have current co-operations in areas like commercial vans. The Fiat Fiorino, the Peugeot Bipper and the Citroen Nemo are all derived from the same project.
The two companies also have joint ventures with other companies on their own. PSA Peugoet Citroen’s recently launched SUVs are a development of the Mitsubishi Outlander while the Fiat Sedici is a Suzuki SX4.