Fiat Chrysler Automobiles and PSA Peugeot announced Wednesday that their boards signed a binding deal to merge the two automakers, creating the world's fourth-largest auto company.
In a joint statement, the companies said the new group will be led by PSA's cost-cutting CEO Carlo Tavares, with Fiat Chrysler's chairman John Elkann as chairman of the merged company.
No name for the new company has been decided, executives said in a conference call. Fiat Chrysler CEO Mike Manley will stay on, but it was not announced in what capacity.
The 50-50 merger - unveiled in October - gives birth to a group with revenues of nearly 170 billion euros and producing 8.7 million cars a year _ just behind Toyota, Volkswagen and the Renault-Nissan alliance.
The companies said the merger would create 3.7 billion euros in annual savings, which will be invested in ``the new era of sustainable mobility'' and to meet strict new emissions regulations around the globe.
No plants will be closed under the deal, the companies said. The savings will be achieved by sharing investments in vehicle platforms, engines and new technology, while leverage scale on purchasing.