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Official: Fiat-Chrysler merges with Peugeot-Citroen to create one of the world's largest carmakers

Jeep will be one of the latest automotive juggernaut’s 13 brands.

Fiat Chrysler Automobiles (FCA) and PSA Group have formally agreed to a 50/50 merger that will create the world’s fourth largest carmaker by volume.

With 8.7 million vehicles sold combined in 2018, the new automotive powerhouse will rank behind Volkswagen Group (10.8m), the Renault-Nissan-Mitsubishi Alliance (10.7m) and Toyota Motor Corporation (10.6m).

FCA and PSA Group had a combined annual revenue of nearly €170 billion ($A275.7b) last year. About €3.7 billion ($A6.0b) of annual run-rate synergies are expected to be achieved without any plant closures as part of their transaction.

The “combined company will leverage investment efficiency across a larger scale to develop innovative mobility solutions and cutting-edge technologies in new-energy vehicles, autonomous driving and connectivity,” according to a joint press release.

The Italian-American-French conglomerate will pair FCA’s Fiat, Chrysler, Jeep, Ram, Dodge, Lancia, Alfa Romeo and Maserati brands with PSA Group’s Peugeot, Citroen, DS, Opel and Vauxhall brands.

Current PSA Group chief executive and chairman of the managing board Carlos Tavares has been appointed group CEO of the new OEM, while current FCA chairman John Elkann will serve as group chairman of its board, which will have a majority of independent directors.