FCA shares in Milan rose more than 10 per cent at the opening bell."This is not the first time Elkann and Tavares have spoken," he added.Milan: US-Italian auto giant Fiat Chrysler and Frances Groupe PSA, the maker of Peugeot and Citroen cars, announced Wednesday they are in merger talks that could create the worlds number four automaker.The statement and a similar one from PSA offered no additional details.The discussions come just months after a proposed merger between Fiat Chrysler and French automaker Renault fell through. Meanwhile, PSA shares climbed more than 8 per cent in Paris.54 billion euros on the Paris Stock Exchange, while FCA is valued at just over USD 28 billion on Wall Street and 20.

A person with knowledge of the matter told AFP on Tuesday that the merger would yield an entity valued at about billion..Fiat Chrysler Automobiles (FCA) said in a statement it "confirms there are ongoing discussions aimed at creating one of the worlds leading mobility groups" with PSA.Fiat Chryslers former boss Sergio Marchionne, who died last year, also spoke repeatedly about the need for consolidation in the automotive sector.Despite its Italian origins with Fiat, FCA does not have a very strong position in Europe compared to PSA with its French and German brands.On the China Automotive molds Manufacturers other hand, PSA is absent from the massive US market, where FCA has Chrysler plus the Jeep, Dodge and Ram brands.Discussions between the automakers are ongoing and there is no guarantee of an agreement, the source said, confirming details first published in the Wall Street Journal.The French group has a market capitalisation of 22. PSA posted a new record for revenues of 74 billion euros (USD 82 billion) in 2018 while FCA reported 110 billion euros in revenue.

A merger of the two groups would bring under one roof Alfa Romeo, Chrysler, Citroen, Dodge, DS, Jeep, Lancia, Maserati, Opel, Peugeot and Vauxhall.PSA has never hidden its interest in automotive sector consolidation.According to Bloomberg News, FCAs board of directors is expected to hold an emergency meeting on Wednesday.The person said Carlos Tavares, the chief executive of Peugeots parent, Groupe PSA, would lead the new company as CEO while John Elkann, chairman of FCA, would be chairman.The tie-up would combine the strengths of the two groups.74 billion euros in Milan."Both FCA and PSA need an alliance," Marco Bentivogli, head of the Italian trade union Fim-Cisl, said late on Tuesday when rumours of merger talks first began to circulate