Italian automaker Fiat and French automaker PSA, which builds Peugeot and Citroen vehicles, quickly denied a report this morning that they were considering a merger. The report, from an Italian newspaper, suggested that the two European powerhouses would join teams, but Fiat says it is only looking at its proposed alliance with Detroit automaker Chrysler LLC.
The widely-publicized Fiat-Chrysler tie-up would see the Italian automaker gain 35 percent of Chrysler, as well as North American distribution channels, in exchange for providing the ailing Detroit automaker with much-needed small car platforms and powertrains.
Fiat said that it is open to collaboration with other automakers – much like the Suzuki SX4/Fiat Sedici (pictured) joint-venture – but it is not looking to merge with PSA.
The French automaker says it does “not comment on rumors.”
The report came out of Italy’s Il Sole 24 Ore newspaper, which said that Italian investment bank Mediobanca had met with a strategic consultant to draw up a plan to merge the automakers. The proposed merger, according to the newspaper, would see the joint automakers headquartered in Paris and owned between 40 and 45 percent by the Italians.
