WATCH | Fiat talking to Peugeot-Citroen over merger

PSA and Fiat Chrysler said Thursday they aim for a merger of equals in which their shareholders each own half of the new firm that would be based in the Netherlands.

In a joint statement the carmakers said their boards of directors "have each unanimously agreed to work towards a full combination of their respective businesses by way of a 50/50 merger" and the Dutch-based parent company would have balanced representation and a majority of independent directors with FCA's John Elkann as chairman and PSA's Carlos Tavares as CEO and member of the board.

Image: This combination of file pictures created on October 30, 2019 shows the FCA (Fiat Chrysler Automobiles) logo (L) displayed on March 6, 2019 during a press day ahead of the Geneva International Motor Show in Geneva, and the logo of French carmaker PSA Peugeot Citroen displayed during a press conference at the Opel headquarters in Ruesselsheim, Germany, on November 9, 2017.

US-Italian auto giant Fiat Chrysler and France's Groupe PSA, the maker of Peugeot and Citroen cars, announced Wednesday they are in merger talks that could create the world's number four automaker. Daniel ROLAND, Harold CUNNINGHAM / AFP