Why Fiat Chrysler Is Merging With French Carmaker Peugeot

Rival carmakers PSA Group and Fiat Chrysler Automobiles unveiled a plan to combine, pooling resources to confront an expensive new era of trade tariffs, emissions rules and electrification. Shareholders of each company will own 50% of the combined entity, to be listed in Paris, Milan and New York. Investors in Fiat will receive a dividend of 5.5 billion euros ($6.1 billion) and its robotics arm Comau, while France’s PSA plans to distribute its 46% stake in auto-parts maker Faurecia SE.

 

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