AP, Milan :
Italian-American carmaker Fiat Chrysler Automobiles on Wednesday confirmed that it is in talks with French rival PSA Peugeot, its second bid this year to reshape the global auto industry which is facing huge challenges with the transition to electric and autonomous vehicles. The statement said the discussions were ongoing “aimed at creating one of the world’s leading mobility groups,” but didn’t specify whether the goal was a full merger or a looser alliance. No further details were given. PSA Peugeot put out a similar statement.
FCA shares shot up nearly 9% on the news to 12.75 euros ($14.70) in Milan trading. Fiat Chrysler has long been looking for a partner to help shoulder investments in the capital-heavy industry, under the outlook that failure to consolidate would inevitably lead some companies to fail.
