Fiat Chrysler has proposed a combined entity that would become the world’s third-largest carmaker.

Fiat Chrysler Automobiles (FCA) has proposed a deal that would reshape the global automotive industry.

This Monday, Fiat Chrysler pitched a finely balanced merger of equals to Renault aiming tackle the costs of far-reaching technological and regulatory changes, officially confirmed the reports heard over the weekend.

This 50/50 merger with France’s Groupe Renault, a move that would create the world’s third-largest automaker by production, will se both Fiat and Renault each own 50% of the business, combining sales of 8.7m vehicles a year — larger than General Motors.

An announcement on FCA’s website touted the merger as a chance to save €5 billion a year in synergies, merge platforms and powertrains and dump capital into EVs and other new technologies. It also said no plant closures would be needed, however, this combined business would sell approximately 8.7 million vehicles annually and most likely turn into world leader in EV technologies, premium brands, SUVs, pickup trucks and light commercial vehicles, establishing a broader and more balanced global presence than either company on a standalone basis. The proposal also wants to inject fresh life into Renault’s alliance with Japan’s Nissan.

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