Fiat Chrysler, PSA Peugeot sign merger deal

Fiat Chrysler Automobiles and PSA Peugeot on Wednesday signed a deal to merge the two companies, creating the world’s fourth-biggest automaker.

The $50 billion merger was described as a 50-50 tie-up when the companies unveiled it in October, but Peugeot will get one more seat on the board, and its CEO, Carlo Tavares, will lead the combined company.

Fiat Chrysler CEO Mike Manley will have a role, but it was not immediately announced.

The new company’s scale will create $4.1 billion in annual savings and help the car manufacturers face challenges, such as meeting tougher emissions rules and shifting to new driving technology.

“The merged entity will maneuver with speed and efficiency in an automotive industry undergoing rapid and fundamental changes,” the companies said in a joint statement.

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